Uber is shuttering its operations in Denmark in light of a new taxi law in the country. The company, which offers ride-hailing services to users who want a quick and easy transportation alternative, operates sort of akin to a small business, in which it employs independent contractors to facilitate its enterprise with.
Uber Halts Services In Denmark
Unfortunately, for Uber, not everyone agrees with that setup. Latest proof of this is Denmark's new set of laws, which require all taxi cabs to have seat occupancy sensors and fare meters. It marks the latest setback for the Uber in Europe.
The Government Still Isn't Sure What Uber Is Exactly
An Uber spokesman confirmed to The Guardian that the company won't be able to operate inside the country unless the new regulations are changed, adding that Uber "must take the consequences." Uber has, however, also faced challenges in other cities such as Madrid, Paris, London, and more. The company is currently waiting for the European court of justice to set the terms on whether Uber should be regulated as a transport service or as a digital platform.
In Denmark, Uber has 2,000 drivers and 300,000 patrons using the app, the company said. While Uber won't be able to continue operations in light of the newly placed rules, it will, however, remain in talks with the government "to enable Danes to enjoy the benefits of modern technologies like Uber."
Taxi driver unions in Denmark and cab operators alike have argued in European courts that Uber doesn't follow legal standards like taxi firms do and that its ride-hailing services presents an unfair competition for them. In effect, Danish prosecutors last year accused Uber of facilitating an illegal taxi service.
For Uber, threatening total halt of its operations in an area it's deemed illegal to perform them is no strange response, as it has happened before in Anchorage, Alaska. The move, however, makes sense: if Uber succumbs to traditional taxi laws and regulations, it technically admits that it's a cab service and, by extension, an employer. Entering this category could restrict Uber in its attempts to disrupt the transportation industry at large.
Uber's String Of Controversies
The threats of shutting down isn't the only woe Uber has to deal with, however. The company is also currently entering war with Google of all companies over allegations that Uber stole plans and intellectual property from Google's Waymo unit and that these plans are what Uber has used to power its self-driving testing program. This battle is still very much under way, and the result could hamper the company's stint in driverless technology.
On the bright side, Uber just released its first-ever diversity report, although it didn't reveal much, just that the company is composed of mostly white and most male employees. Travis Kalanick, Uber's CEO, is intent on making a version that's more diverse, so we'll see if the diversity figures bump up a notch in the coming years.
The company is also currently looking for a chief operating officer to help Kalanick in terms of leadership, which he recently admitted he needed. Uber has been met with a string of controversies this year, including mounting allegations of sexist workplace abuse, which, in fact, compelled it to release the diversity report in the first place; a noxious, aggressively competitive office culture; and Kalanick being a "ruthless" firecracker of a boss.
