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Uber suspends service in Nevada after judge issues an injunction

  • The judge issued the injunction to stop the firm operating in the state
  • He argued that Uber refuses to comply with state laws which is unsafe
  • The firm has faced stiff opposition to its app from all around the world 
  • A spokesman said the ban in Nevada will cost them over 1,000 jobs 
  • But Uber insists it is a technology firm and not a taxi company  

By

Belinda Robinson For Mail Online


Published:
07:01 EST, 27 November 2014

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Updated:
21:22 EST, 27 November 2014

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Ride sharing firm Uber has been forced to suspend its services in the U.S. state of Nevada after a judge issued the firm with an injunction.

The judge from a Washoe County District Court issued a preliminary injunction preventing the company from operating statewide on Tuesday.

It issued the legal ban on behalf of the state saying Uber refused to comply with state laws regulating commercial motor carriers which could put the public’s safety at risk.

Ban: A judge from a Washoe County District Court issued the company with a preliminary injunction 

Ban: A judge from a Washoe County District Court issued the company with a preliminary injunction 

Authorities have long held many concerns over the popular ride-sharing firm; passenger safety is just one of them along with their ability to muscle in on licensed  taxi drivers’ revenue.

Companies such as Uber allow passengers to summon cars using apps on their smartphones, rather than calling a taxi company.

They have gained popularity in dozens of U.S. cities and international countries over the past few years.

But in Nevada, the attorney general filed a lawsuit last month arguing that the Internet application infringes on the franchise rights of taxi companies and cabdrivers.

The law suit could lead to a trial in the future.

A spokesperson for Uber said that the ban in Nevada could cost 1,000 jobs.

‘It’s unfortunate that Nevada is the first state in the nation to temporarily suspend Uber,’ spokeswoman Eva Behrend said in a statement. 

Yet critics of the Delaware-based company continue to grow.

In September, taxi drivers in London staged a mass demonstration over the ride-sharing app in September.

Up to 5,000 black cab drivers blockaded London’s city center yesterday in protest against a boom in unlicensed minicabs and rickshaws as well as the hugely popular Uber smartphone app.

Big Ben rises in the background over the Houses of Parliament as black cab drivers blockade Parliament Square in protest against the boom in unlicensed minicabs and rickshaw drivers on the streets of London

Big Ben rises in the background over the Houses of Parliament as black cab drivers blockade Parliament Square in protest against the boom in unlicensed minicabs and rickshaw drivers on the streets of London

Protest: Taxi drivers gather next to the Olympia Stadium in Berlin, Germany, to protest the app in June

Protest: Taxi drivers gather next to the Olympia Stadium in Berlin, Germany, to protest the app in June

Drivers in San Francisco have also expressed their dismay over the app suggesting it has led to soaring competition from unlicensed drivers.

In Germany, a regional German court issued a temporary injunction against Uber in September, saying its drivers lacked necessary commercial permits.

Meanwhile, Singapore recently announced new rules for mobile taxi booking apps, like Uber, in the latest move by governments around the world to regulate the services.

Singapore’s Land Transport Authority said the apps will soon have to apply for a three-yearly ‘certificate of registration’ starting from the second quarter of next year.  

The firm faced even more problems recently after reports emerged that executive Emil Michael wanted to hire ‘opposition researchers’ to dig up dirt on journalists who were critical of the company.

The company has come under such fire recently that its CEO Travis Kalanick raised gasps at a conference by comparing his firm’s problems to the repression faced by demonstrators in Ferguson.

'Weird analogy: Uber CEO and co-founder Travis Kalanick, who compared his company's problems with Las Vegas taxi regulators to the problems faced by people demonstrating against police brutality in Ferguson

‘Weird analogy: Uber CEO and co-founder Travis Kalanick, who compared his company’s problems with Las Vegas taxi regulators to the problems faced by people demonstrating against police brutality in Ferguson

Travis Kalanick was speaking at a tech conference hosted by investment bank Goldman Sachs.

He said his problems in Las Vegas were similar to those faced by anti-police brutality demonstrators in Ferguson, Pando Daily reports. 

But he insists that his company is a technology business and not a taxi firm.

Yet, despite its myriad of issues, the young upstart company is proving to be popular and is close to raising between $35 billion and $40 billion in their latest round of funding insiders told Bloomberg. 

Behrend said: ‘We will continue to work with regulators and state leaders as we evaluate this development.’ 

‘We remain committed to working with Nevada’s leaders to create a permanent regulatory framework that affords Nevadans the flexibility and innovation offered by Uber,’ she added.

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