Uber is pulling out of three German cities, citing that its operations are no longer feasible due to harsh and complex regulatory rules. These cities include Hamburg, Frankfurt and Dusseldorf.
"Plenty of people in Germany want to press a button on their phone and get a safe, affordable ride with Uber," Christian Freese, general manager at Uber Germany, said in a statement sent to The Verge. "Yet we've found the requirements, even for licensed services, to be very complex. Uber is increasingly popular in Munich and Berlin so we have decided to focus our efforts there."
The ride-sharing company's move came nine months after Germany ruled that Uber drivers are considered the same as normal taxi driver and, therefore, must secure the required licenses in order to operate. This effectively banned Uber drivers with no permit and those who have not paid fees associated with the licenses, according to The New York Times. As a result, Uber is now experiencing a shortage of drivers in the aforementioned cities. Many German Uber drivers found it expensive to secure a taxi license and necessary permits. This is aggravated by the stiff fines that Germany imposes on violations to local transport laws, Reuters noted.
Uber, however, maintains that the pullout of its services in Hamburg, Frankfurt and Dusseldorf is only temporary. It is reportedly bent on expanding its services in Germany and continues to engage policymakers and regulators in those cities, The Verge reported.
