You’ll be Surprised at How Many Legal Battles Uber has Faced

Most young people prefer ridesharing services to traditional taxis – for a good reason. They are convenient, affordable and downright innovative.

However, not everyone shares that sentiment. Some jurisdictions just can’t see sense in crippling an entire industry to please riders or service providers. They prefer replicating the innovation and using it with the cabbies on the ground.

So here are some places where Uber has been banned or has voluntarily walked away after legal battle.

Three US States

Austin – as ironic as it might seem, Uber is facing legal action in over 20 states. The most notable one being Austin, Texas where the company decided to pull out after a juristic disagreement in 2016.

Alaska – this state also had a problem with Uber’s business model, and that lead to a courtroom battle that ended in Uber paying $77,925 in fines. The company later exited the market altogether.

Oregon – this west coast state also slapped a ban on ridesharing services, but with an exception for Portland.

Four Countries in Europe

Bulgaria – Uber has also faced legal issues in Europe, with Bulgaria being the most visible case. The Supreme court of Bulgaria ordered the shutdown of Uber, citing that anyone looking to provide taxi services in that country should take on all the requirements.

Denmark also made taxi meters mandatory for all cabbies operating within her borders. And that saw the exit of Uber from that market.

London – The latest ban on ridesharing services was in London. The court claimed that Uber is not “fit and proper” for their market. But the start-up has vowed to fight back claiming that more than 40,000 Londerners depend on their services.

Newyork Wants to Boot Out Ridesharing Services

Newyork’s current taxi medallion system is failing. Driver-owners can barely meet lease agreements, and the price of medallions is teetering.

The entry of Uber, Lyft and other ridesharing services in Newyork come as a relief to aspiring cab owners and riders. But the city’s taxi industry is taking non of that. They recently engaged this free cabbie market in stormy legal battles.

Of course, the politically affiliated medallion owners got the upper hand. Alluding that everything was okay since 1930 until the ridesharing services arrived. Now, the value of this treasured medallions is plummeting.

There are roughly 13,000 taxi medallions in NewYork, and for a long time, they sold at $1 million and even more. Today, the same medallions are worth less than $200,000. And that has left many owners with steep loans which they cannot afford to service.

This inequity trickles down to riders too and that, in a way, fuels the cycle of debt. However, this problem is not going away soon. The city is tightening taxi regulation again, in an attempt to make a recap after almost running out of business.