The series of controversies for the biggest ride-hailing company has not yet ended. It has caught in another controversy in the UK related to drivers avoiding to follow and fulfill all the taxi rules which are put down by the government. The controversy is related to many of the taxi drivers providing services are employed without a proper driving license. This has hampered the potential growth opportunities of this $70 billion ride-hailing company in the UK. This is not the first time Uber suffered such allegations. There have been strict instructions from the highest court to this ride-hailing company to abide by all the tough governance rules put forwards for the taxi driving business.
They have suffered hurdles in the France as well when the question was arose in one of the cases against Uber, where the question was whether it should be considered a Taxi service company or simply a digital platform that works merely as a mediator between the taxi drivers and the passengers for the services. If the company is considered to a Taxi service company then they have to abide by all the rules and regulations related to the safety and employment of all the employees (drivers) in the company. The French regulatory bodies have already filed criminal charges against Uber against breaking a law related to all the taxi drivers associated with this company and carrying passengers should pay a nominal fee for the license of the taxi driver and should mandatorily have proper insurance.
In defense to these allegations, Uber considered it to be a technical regulation for digital services. Now according to them, the French authorities failed to inform about the adoption of such new regulation to the European Commission and hence they cannot forcefully enforce such law on them. On the contrary, the French authorities and advocate said that Uber was considered in the category of taxi services and they have all the authority to ban any transportation services which they find to be illegal without confirmation and informing to the European Commission. This has brought a big threat to the low-cost service provided by Uber known as UberPop which is under the scrutiny of the French authorities and expected to be ban. According to the latest recommendations, the result is expected to be in favor of the French Authorities since Szpunar has favored the previous opinion of Uber following all the governing rules and regulation related to the taxi service.
Uber has not yet decided about the next official CEO after the forceful exit of former CEO Travis Kalanick. This controversy would increase the current tension environment prevailing in the board room and would expect the team to come up with strong defense to retain their position in the European market.