Uber’s services have been discontinued in some cities, particularly in Asia as a result of official complaints and legal battles which the company faces with local authorities.
San Fransisco-based company Uber Technologies is facing problems with expanding its services to the Southeast Asian market as well as other global markets. The company, which is valued at about US$40 billion, is worth more than Twitter. Uber was founded in 2009 and now operates in over 200 cities globally. Legal battles could slow down the company’s global expansion plans, resulting in a lower valuation or a decrease in profits.
Uber in Competition With Cab Companies in Vietnam
The Uber app provides users with a platform on which they can book taxi cabs in their city. The service has been claimed to interfere with fair competition among cab companies in cities such as Ho Chi Minh City in Vietnam. The Ho Chi Minh Taxis Business Association complained about Uber after the company began operating there on July 31st and authorities later banned the service. The Uber service is illegal in Vietnam but Transport Minister Dinh La Thang has stated that the Transport Ministry will consider legalising Uber by implementing regulations which will manage the company’s operations. Officials in Thailand have said that drivers using private vehicles to provide commercial services will be fined and warned citizens against using the Uber app. Uber representatives plan to meet with local authorities in South Asia to deal with complaints and in an attempt to rectify the situation.
Uber Faces Legal Battles in Germany
The company also faces legal battles in Germany where authorities have complained about the service’s lack of customer safety and causing of unfair competition. The city of Oslo in Norway has reported Uber to the police for lacking the necessary permits to operate in the city; and authorities have requested a court order to shut down the company in Toronto, Canada.
The widespread complaints may signal that parts of the world are not yet ready for Uber. It may take some time and convincing on behalf of the company to reach compromises suitable for each local economy and to cater justly to competition and safety regulations.