Uber Banned in Germany

Ride hailing service Uber is being banned temporarily in Germany while a court there decides whether or not one of its services should be allowed.

UberPop connects drivers with potential passengers who pay for the ride, but the service is raising questions about fair competition with Germany’s taxi industry. That service is being halted in the country until a court decision about its legality is reached, but the company’s Uber Black service, which allows users to call a luxury sedan as a chauffeur service, is still being allowed to operate. Uber could face fines of up to roughly $330,000 if it violates  the temporary injunction and its employees could be jailed for up to six months, but drivers picking passengers up will not face penalties because they aren’t employees of the company.

A court in Frankfurt found that Uber has unfair advantages over taxi cabs, which are required to have specific licenses and insurance coverage. Cabs there are also required to stop for anyone who needs a ride, but UberPop drivers may be selective in who they sell a ride to. The hearing that will determine whether or not the service will be allowed to continue in Germany will be held later this year.

[Source: New York Times]