After serving for three long years, ride-hailing giant Uber Technologies will withdraw its services from Denmark, the next month. Its services were launched in 2014 but due to growing criticism from taxi driver unions, companies and politicians, the company has now been forced to pull out from this region. Another reason for the said decision is the new taxi law which lays out new requirements for drivers working with the ride-hailing giant.
As per this taxi law in Denmark, drivers have to follow a certain mandatory fare metres and fulfil other standards, such as seat sensors put forth by the government. Unable to induce the same within their company’s ecosystem, Uber has called it quits for Denmark. The allegations like unfair competition, breach of norms further made the company discontinue its taxi service.
Uber announced its departure from the country at a press conference in Copenhagen on Tuesday, according to local broadcaster TV2 News. The broadcaster further declared that from April 18th, the service will not be functional in the region.
About 2,000 Danish drivers, currently employed by the company, will be adversely affected by this decision. The rider count in this country is estimated at 300,000, which will further be influenced. The pitch made by minority liberal government to accommodate new operators, like Uber, along with ambitions to deregulate the taxi business even went to vain, post the introduction of their new laws back in February.
Though the company tried to battle against the law, it was unsuccessful in the process. In addition, Danish prosecutors said that the firm was running an illegal service on the grounds of ban flagged over Uber in some European countries.
Announcing its withdrawal, a spokesperson from Uber said,
For us to operate in Denmark again the proposed regulations need to change. We will continue to work with the government in the hope that they will update their proposed regulations and enable Danes to enjoy the benefits of modern technologies like Uber.
It further added that the deserted drivers can approach the company for assistance and job placement in other regions. Uber plans to employ company resources to help the drivers cope up with the shutdown exercise.
