Uber has had yet another setback in Europe as Berlin is banning the ride-sharing app from being used in the German capital. The local government said passenger safety was its major concern and threatened to fine the company if it continues to operate in the city.
The move follows massive protests across Europe earlier this year after Uber entered the market. In London, taxi drivers stopped traffic for hours in protest of the ride-sharing app being allowed to hit the streets of the British capital.
Uber, based out of San Francisco, has said it will challenge the ban. It had been in Berlin since February, but could face a fine of up to 25,000 euros if it fails to comply. It appealed and had a similar ban overturned in Hamburg.
Fabien Nestmann, general manager at Uber in Germany, lashed out at Berlin officials over the decision.
"The decision from the Berlin authorities is not progressive and it's seeking to limit consumer choice for all the wrong reasons," he said. "As a new entrant we're bringing much-needed competition to a market that hasn't changed in years."
Uber is getting increasingly popular in American cities, where passengers can hail a private car through the ride-sharing app. Uber takes a percentage of the fare from each driver, who keeps the rest of the money. In many places, it has hit the traditional taxi sector hard and led to protests and calls for equal access.
In addition to passenger safety, Berlin cited the unfairness of competition from Uber, whose prices are usually lower than the standard taxi fare, but whose drivers are not insured and often avoid licensing costs and mandatory regulations stipulated by local governments.
It also comes as Uber and its competitor Lyft battle it out publicly over what each side is calling predatory practices of calling for service and then canceling from their respective employees.
Each company seems to be going back and forth, making claims against their rival app company in what appears to be the first major public spat between the ride-sharing apps, Tech Times reports.
The battle for ride-sharing supremacy heated up this year, with Lyft in April announcing a number of price cuts that were aimed at battling against Uber's popularity. Lyft announced that it was pushing into 24 new cities across the United States, bringing its total cities to 60, surpassing competitor Uber, who currently is in 48 cities in the country, but over 100 globally.
