Friday, September 18, 2015

Uber Meets Its Match in France

http://www.wsj.com/articles/uber-meets-its-match-in-france-1442592333


09/18/2015

An anti-Uber sign taped to a taxi in Paris in June says ‘Outside the Law.’ Taxi operators in France have denounced the low-cost Uberpop service because it relies on nonprofessional drivers.



Uber began its service in France in 20111, because it believed that there would be a great potential for growth. The company experienced immediate success which has caused the French government to begin a crackdown on the service. France labelled Uber with the tag of being a professional car service which meant that it was subject to stringent rules and regulations. Uber complied with the regulations as they currently have 10,000 registered drivers. However, Uber also made a move to circumvent the regulation by offering a car sharing service named Uberpop. The method used by Uber led to a massive taxi strike and has led to the arrest of the two senior Uber executives based in France. Uber blames the taxi service for the popularity of Uber. They point to the fact that taxi licenses have only increased by 25% over the past 75 years, so the demand outgrew the supply. Uberpop currently has 160,000 regular users and that number is continuing to grow as the service is expanding to new cities in defiance of the French government. The French government will not address Uber by its corporate name because they believe that Uber does not respect French laws and customers. Rather, French company refers to Uber as the "California Company."

This article directly relates to chapter's 3 and 4 because it is about French culture. The French government believes that Uber went out of its way to avoid French law and traditions. The trial for the French executives is scheduled to begin this month, so we will see if they did in fact show little regard to French law and customs.

4 comments:

  1. This is a very interesting company to watch as they are extending their services all over the world, as my post was about Uber in China. You can definitely see the French culture in play and especially the political uncontrollable.

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  2. Jonathan: your topic on Uber is very interesting.
    Last week I've used Uber service for the first time. It is very useful (no waiting time) and it is considerably convenient (we paid $10 for a 8 miles trip). One advantage is that I find it safer than regular taxis as you can have in advance the driver's information.
    I believe that in France it is not only a matter of its culture instead there are strong political pressures by the Taxi Unions which play a large role in the political environment.

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  3. Nice post; especially since it relates to something that a lot of people currently use.

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  4. Jonathan - this article is very interesting and a topic many can relate to. As most people are replacing traditional taxi services with Uber, it’s no wonder why they’re expanding into foreign markets. Ties in perfectly with our lectures and how culture and international regulations play a key factor in the success of the company.

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