New and disruptive tech business models are used to being blocked by governments – Airbnb has had its fair share of struggles on both the east and west coasts of the United States.
Uber has had plenty, too – and now it faces another. A German court has now ruled the company doesn’t have the proper permits in order to operate anywhere within the country.
This comes after several cities, including New York and Melbourne have attempted to issue restrictions on how Uber operates within their borders.
The company faces a substantial fine of up to 250,000 Euros for each unsanctioned trip conducted by an Uber driver. The main taxi industry body in Germany has welcomed the ruling as well, even calling Uber a “form of locust share-economy”, according to Engadget.
In a statement, Uber has come out against the ruling: “You can’t put brakes on progress”.
Uber will carefully review the content of the preliminary decision of the Frankfurt Regional Court, and will appeal this decision and vigorously defend the claim that has been filed by Taxi Deutschland
We’ve seen struggles among governments and regulatory agencies across the world try to deal with disruptive tech models. Bitcoins are only beginning to prompt tax advice from revenue agencies, and Airbnb has prompted plenty of headaches – especially in California where a resident was able to take up legal residence of a home after staying there for more than 30 days, having booked through Airbnb.
As Germany and other countries around the world deal with new and disruptive models, governments will continue to struggle to keep up. These instances are yet more signs the public service must work to become savvy in new tech – otherwise the private industry will simply continue to outpace it.