Tokyo, Japan - The Japanese transport ministry has slammed the brakes on taxi service Uber less than a month after it launched a pilot programme in the western city of Fukuoka.
A minstry official said on Wednesday: “Last Friday, we met with Uber Japan officials and told them to stop the pilot programme immediately because we suspect it breaches Japanese transport law.”
“There are two major problems with their project,” hev added. “First, it could be considered an unlicenced taxi business if they use regular drivers, and second, there are safety concerns, including a lack of insurance.”
The development marked another blow for the web-based taxi app, which has become an object of scorn from traditional taxi companies in many countries fighting for survival against the rise of the Silicon Valley challenger.
Responding to the move, Uber said it would continue to talk with officials and said the service would be a plus for urban transport in rapidly-ageing Japan.
It said: “We saw this as a unique opportunity to help find a solution and fulfil an important need in Japan's future.
“In the month since its launch, we've received high volumes of positive feedback from participating riders and drivers in the programme.
“We will continue our ongoing dialogue with the relevant authorities to clearly communicate programme details and address any concerns.”
In February the San-Francisco-based firm - which lets non-professional drivers become chauffeurs-for-hire at rates far lower than normal taxi rides - launched its “Everyone's Uber” service in the western city of Fukuoka.
Users who needed a ride could pin their location and request a driver through the app downloaded to a smartphone or tablet.
Uber is already active as a paid-for taxi service in Tokyo tying up with professional taxi drivers.
SAFETY CONCERNS
But during the data-gathering pilot project, private motorists who registered with the company would give a ride to passengers.
Since its founding in 2009, Uber has grown into one of the world's largest startups, valued at some $40 billion (R470 billion), with operations in more than 200 cities in 54 countries around the world.
But its rapid spread has generated friction with existing taxi operations, and posed challenges for regulators.
Safety concerns are also rising. An Indian woman, who alleges an Uber driver raped her in New Delhi, has sued the online taxi service in a US court, accusing it of failing to ensure passenger safety.
Taxi drivers in dozens of cities have staged protests against Uber, and regulators in many cities have sought to shut it down.
Hundreds of taxi drivers from Belgium and France brought central Brussels to a virtual standstill on Tuesday with their vehicles in a protest against the company. About 100 French taxi drivers travelled to Brussels to take part in the protest.
Police said a go-slow procession of 627 cabs several kilometres long drove through the city before stopping at the headquarters of the European Union.
They hooted, set off fireworks and blocked roads around the EU building for several hours, causing huge traffic jams.
Uber is banned in Belgium but operates instead under the name UberPop under a law which allows individual vehicle hire.
Antonino Namonica, one of the drivers taking part in the protest, said: "We have to pay our taxes and our insurance, while these guys get away with it. I think that's unjust.
"Either Uber is banned in all towns and countries around the world, or it is a profession that requires rules."
AFP