14 DAY TRIAL // The mobile-app-based transportation company seems to be going through some tough times. After several scandals and lawsuits which took its toll on the company, Uber has just been slapped with more bad news.
A court in Brazil ordered the ban of the service because it’s hindering the development of other smaller cab companies.
Uber had managed to gain a monopoly on the taxi driving industry in a short period of time, which made it impossible for other drivers to make a living.
Because they were going out of business, a union representing the drivers from Sao Paolo made an official request to the State of Sao Paulo Court of Law in order to have the service banned, Bloomberg reports.
Judge Roberto Luiz Corcioli Filho thought that the drivers were fully entitled to make the request since "The company is providing a clandestine service." As a consequence, the Uber service was banned from the country.
Uber is currently dealing with similar situations
The same thing took place a few days ago in Portugal, when Uber drivers were no longer allowed to take rides given that they lack the permits to do so, and both countries’ regulation clearly states that taxi drivers should have a legal authorization to transport passengers. A professional license that Uber drivers do not have and the absence of which renders their services illegal.
Given the rapid expansion of the taxi-driving service in Sao Paolo, it was only natural for the other cab drivers to take a stand against it. Otherwise, it would not have been long before the company dominated the business.
It remains to be seen how Uber is going to respond to the ban and whether they are going to make an appeal, given that they are already in the process of negotiating with regulators from Germany, Spain and France. These countries have imposed restrictions on the car-hailing app because its cars and its drivers do not comply with Europe’safety rules.