The ride-sharing company announced it would suspend its operations in Hungary because of a new law against it, following similar obstructive moves from several EU countries.
There have been numerous protests around Europe against car-sharing companies, mostly from traditional taxi services that are trying to limit the expansion of Uber-like applications, that made local authorities review their transportation laws. Hungary passed a law in June to hinder Uber’s operations, a legislation that allows the national communications authority to block the internet access to “illegal dispatcher services”. The California-based ride-hailing firm announced last week that it found impossible now to keep on doing business in Hungary. “We will be suspending Uber X in Budapest effective on July 24,” Rob Khazzam, general manager for Uber in central Europe, told Reuters in an interview. “Unfortunately, the logic of legislative developments that have unfolded in Hungary over the last 18 months have led us to this difficult decision.”
So far, Uber has been outlawed in Italy, Spain, Germany and France, while it faces the same outcome in Belgium and the Netherlands. Uber also faces challenges in Denmark, where six of its Uber drivers were recently found guilty by a Copenhagen court of violating Danish taxi laws and fined 2,000 to 6,000 Danish crowns (300 to 900 dollars) each. The company is still reportedly struggling to make some profit from its operations so far, despite covering nearly 500 cities worldwide.