A German court has on Thursday banned American ride-hailing company, Uber Technologies Inc. from operating in Germany, saying the company lacks the license to offer passengers its services using rental cars.
The U.S company which is active in 7 cities works in partnership with car rental companies to carry out its business.
According to Reuters, the company will appeal the court order, saying, “We will assess the court’s ruling and determine next steps to ensure our services in Germany continue.”
The ban which is effective immediately is the second setback Uber is experiencing after the company lost its license to operate in London due to allegations of endangering passengers back in November.
Uber is said to pay fines stemming from 250 euros to 250,000 euros per ride if it does not acquire the proper licenses.
The presiding judge said, “From a passenger’s point of view, Uber provides the service itself and is, therefore, an entrepreneur,” adding that it meant the company had to comply with laws governing passenger transportations.
Separately, Uber breached the obligation that hired cars in Germany have to return to a rental firm’s main office after carrying out a ride, the court said.
(Reuters)
