Uber has been officially banned in Italy, as local government has deemed that the service constitues unfair competition to metered taxi services.
In news that might have overt parralels to the concerns of metered taxi drivers in South Africa, an Italian court has ruled that Uber should be banned in the country and that the firm has just ten days to cease all operations along with the promotion and advertisement of its services.
The ruling was based on a complaint filed by taxi unions, which cited that Uber offered unfair competition. While the ruling is subject to appeal, the company will face a fine of €10,000 EUR for each day that it defies the court’s orders.
Read: Uber’s city-mapping cars will hit the road in Johannesburg
The ruling court elucidated that while Uber is a transportation company, it doesn’t respect transportation laws as its rates were not set by the transportation authority; the same point was contested by aggrieved taxi associations, which cited their inability to compete with Uber on price.
The firm has subsequently released a statement on the decision, offering that “We are shocked by the Italian’s court decision and will appeal. Thousands of professional, licensed drivers use the Uber app to make money and provide reliable transportation at the push of a button for Italians.”
The case – and the subsequent ruling – mirrors concerns shared by the metered taxi industry in South Africa. Earlier this year in March, a mass protest took place in Johannesburg in which metered taxi drivers took action citing the failure of government to adjudicate Uber’s disruption of the metered taxi industry.
Read: Uber’s RUSH delivery service is heading to South Africa
What are your thoughts? How can Uber survive amidst hostile taxi associations and taxi unions around the world? Be sure to let us know your opinion in the comments below!
Follow Bryan Smith on Twitter: @bryansmithSA
