Another day, another problem for the ride sharing service. This time in Hong Kong, where police raided their office and arrested five drivers.
The drivers were caught when they accepted fares from police officers dressed as civilians. They were also accused of driving without the paperwork required and insurance. The arrests are just one of the many problems the popular ride sharing service is facing in the Chinese market.
A few months ago, China launched its first raid on Uber’s office located in the city of Guangzhou, taking computers and other devices. At the time, authorities accused the company of running an illegal business.
Uber is facing all kinds of problems around the world, with some countries already banning or suspending the service completely.
Uber in Australia
In Australia, the ride sharing service had its office raided by investigators. The Australian government told the service that its thousands of drivers must pay the country’s ten percent goods starting this month. Uber has had a tough time in Hong Kong, where the local competition is offering good prices and is still heavily used.
Deutsche Bank recently conducted a research and found that the taxi fares in the city are 50 and even 75 percent less than in other major cities around the world.
Hong Kong currently has more than 18,000 taxis serving close to seven million residents. A lot more than New York but less than London.
Uber Hong Kong spoke about the situation and showed support for the drivers arrested in the raid. They released a statement saying that all their drivers have insurance and go through an extensive background check. They also said they stand by the drivers arrested 100 percent and told authorities they’re willing to work closely with them to ensure that they are up to date with the regulations and changes.
Hong Kong police had warned its residents not to take rides from the drivers without paperwork. Everything looked like it was going well for Uber in Hong Kong, saying last year that the city was willing to have many options.
Will Uber Stay in China?
Uber rides in Hong Kong a pricier than regular taxis out in the streets. Will Uber stay?
The ride sharing service has already lost its patience in some areas the world. In parts of Florida, the service decided to pack its bags and leave after fighting officials and taxi drivers in the area. Some of the cities spoke about keeping the service but the deadline came and Uber left. Now people in Broward County are asking the service to come back. The service is also skating on thin ice in some of the biggest cities in Brazil, where officials are asking to ban the service, even though most residents want it to stay because they offer clean and comfortable cars.
A fews days ago, taxi drivers in Ottawa started monitoring the service and collecting evidence to prove that Ubers drivers don’t have the licenses and paperwork required. The group has already posted two videos with proof and have ignored the warnings from Ottawa authorities telling them to stop.