It is no secret that Uber is more popular in American cities than European cities. However, the company is making attempts to change this. Uber has recently returned to Germany. Previously, Uber had been forced out of Germany due to not following German regulations. This time, the company is trying to make amends.
Germany requires all drivers to pass health and driving tests, and to receive a business licenses that includes a bookkeeping exam. Additionally drivers must return to a home base between trips, which result in limitations in the number of rides that can be made. Car-pooling services are not allowed. When Uber first arrived in Germany, the company didn’t inform local officials that it was coming and so as soon as the app went live, anybody was able to transform his or her car into a taxi, even if they didn’t have a license. Uber has been trying to make amends since this faulty communication. The CEO, Dara Khosrowshahi, has been to Germany twice in the past year in order to apologize for the company’s past behavior. Uber has also vowed to follow all of Germany’s regulations, as well as incorporating electric cars into Uber’s fleet out of respect for the German government’s fight against air pollution. Uber plans to re-establish its service into Germany by the end of 2018.
Uber will first return to Düsseldorf. The company has chosen this town because customers have logged into the app more than 150,000 times since January and this was a period of time when there weren’t even any cars on the road.
Re-entry will not be especially easy for Uber. The company faces more competition than it did when it started in Germany three years ago. There is now a service owned by BMW called DriveNow that lets people rent a car with an app for short trips around cities. Moia is testing a ride-sharing bus service in Hamburg. MyTaxi is a taxi-dispatch app that is widely used in Germany. Lastly, Taxify also provides rides in European cities.
In addition to other competing apps, Uber is also facing major backlash from German taxi drivers. Last month dozens of taxi drivers protested outside of Uber’s office. They blasted their horns and stopped traffic. The Düsseldorf police said there have been reports of six incidents between taxis and Uber drivers. These reports include incidents of taxi drivers verbally abusing and harassing Uber drivers.
If Uber were able to successfully expand into Germany, this would result in great things for the company. Germany is the world’s fourth-largest economy and the largest in Europe. It has multiple densely populated cities and has a wealthy, tech savvy population. Currently, in London, the company is involved in a lawsuit that would require a minimum wage and to provide holiday time to drivers. In Spain, taxi drivers have persuaded politicians to limit the number of Ubers on the road. In Italy, the company has been kept out due to regulations. It seems as though Germany may be Uber’s greatest hope in expanding into European markets.
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