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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