Uber's Road Block
An Italian court is putting the brakes on San Francisco based Uber.
Earlier this week the court issued a ban on unlicensed car sharing services such as Uber. The service has been gathering popularity among people across Europe who are looking for a cheaper way to travel. Unfortunately taxi drivers don't appreciate the threat to their business and have begun voicing their opinions with large protests.
The court in the Italian business capital of Milan says companies like Uber create unfair competition. So it ruled that using the Uber app was forbidden along with the offering of paid car-ride services by unlicensed drivers. The move by the Italian court adds to a series of legal challenges facing the company.
Besides frustration from taxi drivers Uber has also faced legal challenges in everything from how it secures customers to the insurance carried by drivers. But despite the setbacks, the company has an estimated worth of $40 billion. For now Uber has fifteen days to comply with the Italian court’s ruling or be fined $21,000 a day. Talk about a road block.