Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The UberPop car service of Uber Technologies Inc. is to be banned by France only three days after a bid to block the companys smartphone application was rejected by a Paris judge. The ban is to take effect on January 1st 2015.

Currently the U.S.-based company has about 500 000 regular customers in France, and the capital of the country was the first city in Europe where the service of Uber was presented.

Pierre-Henry Brandet, a spokesman of Interior Ministry, commented in a telephone interview on Monday, cited by the Financial Times: “Not only is it illegal to offer this [UberPop] service but additionally for the consumer there is a real danger.” As reported by Bloomberg, Mr. Brandet also said: “We are banning the service where someone can be a driver while not having the training, the background checks and basic requirements. Car-sharing is allowed but not this service.”

The application service has been using drivers without professional licenses, which is one of the reasons why regulatory authorities in the country have hit Uber, blocking it from operating its service. The move by the regulators comes only several days after the commercial court of France refused to ban the service on jurisdictional grounds.

The UberPop service, offered by the U.S.-based company, has been attracting customers with lower cab expenses. A demonstration against “unfair competition” by three groups took place on Monday after the French court initially decided not to ban UberPop. The application provides individuals with the opportunity to register as a driver using their own private vehicle. This is the lowest-cost fare option that Uber offers.

The demonstration was planned by three Parisian taxi unions and now the Interior Ministrys decision to ban Ubers application comes as a response to the planned action.

Taking into consideration the possibility for individuals, who do not own a driving license, to register as drivers, is one of the main reasons why the application triggered concerns.

As reported by the Financial Times, a spokesperson of the U.S.-based Uber also commented on the matter, saying: “We continue to have an open dialogue with all relevant stakeholders and believe we share the same objectives, namely to integrate innovative solutions into the mobility mix in France as well as to keep Paris moving, offering different safe, reliable and affordable transportation options for people.”

The other services of the U.S.-based company, including its UberX application, which requires an obligatory driving license, were not put under any risk by the decision of the Parisian court. The countrys Minister of Economy, Emmanuel Macron, said that there is no threat of banning the entire company and its services in France.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • T. Rowe Price reports 1.75% surge in total AUM in JuneT. Rowe Price reports 1.75% surge in total AUM in June T. Rowe Price Group Inc (NASDAQ: TROW) on Thursday reported a 1.75% month-over-month surge in its assets under management (AUM) to $1.569 trillion as of June 30th, according to preliminary figures.Net outflows stood at $2.6 billion for […]
  • Forex Market: GBP/USD daily trading outlookForex Market: GBP/USD daily trading outlook Friday’s trade saw GBP/USD within the range of 1.4247-1.4431. The pair closed at 1.4258, plummeting 1.08% on a daily basis, or at the sharpest rate since November 5th, when it fell 1.15%. It has been the 8th drop in the past 10 trading days. […]
  • Renault targets double-digit margin for Mobilize brand by end of decadeRenault targets double-digit margin for Mobilize brand by end of decade Renault SA (RENA) said earlier this week it was expecting a double-digit margin for its new Mobilize brand, established around new mobility and data solutions, which should account for 20% of Renault's total group turnover by […]
  • Forex Market: EUR/MXN daily forecastForex Market: EUR/MXN daily forecast During Friday’s trading session EUR/MXN traded within the range of 17.718-17.841 and closed at 17.765, gaining 0.11% for the day, extending the weekly advance to 0.35%.At 8:33 GMT today EUR/MXN was losing 0.13% for the day to trade at […]
  • Laser Photonics gets order from Ontario Power GenerationLaser Photonics gets order from Ontario Power Generation Laser Photonics Corporation, a global developer of CleanTech laser systems for laser cleaning and other material applications, said on Wednesday that it had received an order from Ontario Power Generation's nuclear division for its […]
  • Bitcoin Plunges Below $82,000Bitcoin Plunges Below $82,000 Key momentsOn Thursday, Bitcoin’s price fell once again, reaching $81,681. Prominent cryptocurrencies such as Ethereum and XRP followed suit, with their respective values decreasing. MARA Holdings, a Bitcoin mining company, announced […]