Popular on-demand ride service Uber has just been ordered by a Paris court to pay the country's National Union of Taxis 1.2 million euros ($1.3 million) for acting as traditional taxis. The court ruling was announced on the second day of the massive protests of taxi drivers in the French capital.
The complaint lodged by the taxi union stemmed from the charge that Uber is being ambiguous in its rules so that a large number of Uber drivers wait in the streets for passengers, taking away at least a third of the taxi drivers' business. Uber falls within the classification of private hire cars, and French regulations mandate that they have to go back to their bases after each fare.
The San Francisco-based company has confirmed the recent setback to its French operations. The payment reportedly covers the period between December 2014 to February 2015. However, Uber argued that it has not been remiss in its obligation to inform its drivers about the minicab services requirements under the law. "The merits of the case on which today's decision was based are already under appeal," Uber told The Financial Times. "Clearly, we will appeal this particular outcome, too."
It is not yet clear whether the court victory will pacify the protesting taxi drivers. The strike has already caused immense traffic and disrupted the operation of Paris' two airports, The Verge reported.
