Uber services via rental cars have been banned by a German court order today. Uber has been banned owing to the lack of necessary licenses to offer passenger transport using rental cars. The company has also been accused of violating competition rules as it allows its drivers to drive rental cars.
The verdict will come into effect immediately. However, the company can make an appeal for an hearing, said the Frankfurt regional court in a statement on Thursday.
Uber said that it will review the decision before taking measures to be allowed to continue providing services in Germany.
The company was not immediately available to comment.
This will be the second such setback for the company. More recently, Uber’s London license to operate wasn’t renewed in rather curious circumstances. Curios, because Uber’s India-based competitor Ola got the license to operate in the city, as it looks to become a global brand. In Germany, Uber was already banned from allowing its drivers from matching with passengers willing to make a journey.
Uber has become a global phenomenon, having a net worth of almost $75.5 billionat its peak. It has since come down to upper 40s, and continues to tank amid growing investor fears of the company never coming to green on the balance sheet. Since it’s arrival in 2009, Uber has expanded to around 60 countries. Uber’s former CEO Travis Kalanick has amassed a net worth of $3.2 billion. More recently, he had cashed in on a part of that net worth by dumping well over $400Mn in a stock sale.
