Friday, July 15, 2016

Uber to Suspend Operations in Hungary Over New Law



BUDAPEST — The ride-hailing service Uber will suspend its operations in Hungary because of government legislation that it says makes it impossible for it to operate, the company said on Wednesday.

In June, Hungary’s Parliament, where Prime Minister Viktor Orban’s right-wing Fidesz party has a strong majority, passed legislation with the aim of curbing Uber’s activities.


The move came after months of protests by taxi drivers and bans on some Uber services in other countries.

The new law, which comes into force this month, will permit the Hungarian national communications authority to block internet access to “illegal dispatcher services.”

In an interview, Rob Khazzam, the general manager for Uber in Central Europe, said, “We will be suspending Uber X in Budapest effective on July 24.”

“Unfortunately, the logic of legislative developments that have unfolded in Hungary over the last 18 months have led us to this difficult decision,” he said.
Taxi drivers in Hungary have demanded that Uber be outlawed and that its smartphone app be blocked. They say Uber drivers breach regulations that drivers for taxi firms must follow.

Uber says more than 160,000 people use its services in Budapest. The company says that its 1,200 drivers now risk losing their licenses for up to three years despite being professionally licensed and tax compliant.

“It is not a ban,” Mr. Khazzam said. “Uber has not been banned in Budapest; it is simply a forced suspension. We have been left no other alternative by the authorities in Hungary in response to these developments.”

Mr. Khazzam said Uber hoped to be able to restore its service in Hungary.



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