German court files injunction against taxi service Uber for lack of transport permit
A German court has filed a temporary injunction against transport service Uber after it was found to be operating without a transport permit.
Worldwide taxi service have condemned the app
The Frankfurt district court banned the taxi app after ruling that it did not have an official permit, required under the country’s Passenger Transport Act, according to Der Speigel.
Without the permit, the app cannot legally transport customers as a taxi service. As a result, the judge said that Uber was “unfair competition” for licensed taxis.
Earlier this year, British cabbies lost a case against Uber after Transport for London (TfL) ruled that it had no concerns regarding the legality of the service.
The company will have the opportunity to defend itself at a later date at a court hearing.
However, if it continues violating the Transport Act - it could face a fine of up to 250,000 Euros.
The app, named after the German word 'Uber' meaning "over" or "above", has been temporarily discontinued in Berlin, Munich, Frankfurt, Hamburg and Dusseldorf.
Uber is currently looking into alternative delivery and courier schemes to avoid similar disputes with governments and taxi services around the world. Last week it piloted a healthy lunch delivery scheme in California called UberFresh.
An Uber spokesperson said that the company will combat the decision and defend its right to operate in Germany.
Boosting Uber's credentials in such legal battles will be new hire, David Plouffe, president Obama's former campaign manager, who will lead the company's worldwide public relations strategy.