Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Uber Gets Cold Shoulder in Paris, Warm Welcome in Stockholm

Uber

Two European cities have reacted quite differently to inroads by ride-sharing service Uber.

The $40 billion San Francisco-based startup has eased its way into Stockholm, Scandinavia’s biggest city, with next to no friction. Even the city’s biggest taxi company says Uber represents an opportunity to improve its industry, Bloomberg said.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.

“Uber is giving the taxi market a chance to develop by coming at it from a lifestyle point of view, ” said Carina Herly, head of marketing at Taxi Stockholm, which has 1, 600 cars in Sweden’s capital. “Uber is good for the market by pushing the industry to use a different technique, a new platform.”

The Swedish government isn’t planning to block Uber and wants to invite all forms of “healthy competition, ” so long as existing laws and regulations are upheld, Infrastructure Minister Anna Johansson said in an email, the report said.

Any other response would be hard to defend in a modern economy, said Robin Teigland, an associate professor and researcher at the Stockholm School of Economics. “It’s short-sighted to resist innovation, ” she told Bloomberg. “Countries and companies that embrace this will clearly benefit over time, with more jobs and economic growth.”

At Taxi Stockholm, the view is to adapt or fall behind. “Change is good, ” Herly told Bloomberg. “We want the market to grow.”

Paris, however, is a different story.

Renowned for a scarcity of taxis and grumpy drivers, Paris is fertile ground for new transport apps such as Uber, but traditional cabbies are not giving up without a fight, AFP said

Taxi drivers have staged anti-Uber protests from Madrid to London to Berlin, but Paris, with its tradition of protectionism, has always been the most combative, the report said.

Indeed, Uber’s American founder Travis Kalanick says he got the idea for his company while struggling to hail a cab in Paris. In 2010, a poll by Hotels.com put Paris dead last among the world’s tourist hotspots for the quality of its taxis, the main complaint being the rudeness of drivers, AFP said.

The same year, a French think tank found that its rigid regulations meant Paris had only 2.6 taxi drivers per 1, 000 people, compared with 8.6 in London and 17.2 in Dublin, according to the report.

Rides in Uber’s “UberPOP” service, which uses drivers without any kind of professional license, cost around half an ordinary taxi ride, AFP said.

A taxi driver interviewed by AFP said that traditional taxi drivers face far stricter regulations, including annual inspections of cars and medical visits, and must pay for an expensive license which is not required for many Uber drivers.

UberPOP is technically illegal in France, but the company has ignored the rules and appealed a 100, 000 euro ($113, 000) fine it received last year, the report said.

Uber’s Kalanick told a technology conference in Munich this month that the laws only “exist because the taxi industry is trying to protect itself through regulatory capture.” He said Uber would create 50, 000 new jobs in Europe this year, and help take 400, 000 cars off the road by encouraging drivers to use taxis instead of their own vehicle, AFP said.

That is unlikely to convince Paris cabbies. Alain Griset, head of the National Union of Taxis, says Uber only works because it forces down wages, according to AFP. “If politicians had any courage, they would ban this business that takes advantage of people who use it to scrape together a few measly euros, ” he said.

 

 

 

 

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Copyright © 2021 Jewish Business News