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Uber Technologies may be managing a system of taxi cars. However, the company proclaimed itself as a tech organization that only provides a platform and a set of services. This definition presented a new concept that took lawmakers aback. Thus, in the lack of a specific law text, Uber took entire countries by storm and presented the first modern alternative to traditional taxis. However, the political theater seems to be catching up with this type of startups. A new taxi law in Denmark has just put a strain on Uber.
The New Taxi Law Claims Mandatory Gear for Vehicles
In light of the political movement, Uber announced that it would cease its activity in Denmark on April 18th. However, the company will not leave entirely without a fight. The new taxi law stipulates the request for obligatory gear. This is seat sensors and fare meters. Most of the traditional taxis are already endowed with this mandatory equipment. However, it is a serious problem for Uber.
The ride-hailing company doesn’t own any of the cars that pick up their clients. Instead, it reinforces strong collaboration between the company and its contractors, which are the drivers themselves. This party has to provide the vehicle while the company takes care of the logistics and other technical aspects of the business. Thus, it is not up to Uber to upgrade the cars according to the new taxi law.
“For us to operate in Denmark again the proposed regulations need to change. We will continue to work with the government in the hope that they will update their proposed regulations and enable Danes to enjoy the benefits of modern technologies like Uber.”
Uber Will Keep its Aarhus Operations Open Beyond April
Uber has been active in Denmark since the year of 2014. However, the company met great resistance against its business format within the country. Local taxi drivers, organizations, and even politicians criticized Uber for its lack of respect for their legal standards. Over the past three years, Uber managed to employ around 2,000 Danish drivers and gain a community of 300,000 users.
The company has also opened headquarters in Aarhus that is taken care of by 40 engineers. The location does not only operate locally, but it provides tech solutions for international Uber services. Even though on April Uber will withdraw its practices from Denmark, the company plans to keep the Aarhus location up and running.
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