Taxi drivers turn violent against Uber in Paris

Taxi drivers turn violent against Uber in Paris

January 13, 2014 7:15 pmby Tim Bradshaw

The taxi industry’s war on app-enabled chauffeur services such as Uber has broken out into physical combat on the streets of Paris. During a strike by French cab driverswho are protesting against the rise of what are locally called “voitures de tourisme avec chauffeurs”, several drivers and limos who crossed the picket line were attacked, with windows smashed and tires slashed.The incident was first reported on Twitter by Kat Borlongan, co-founder of French open-data company Five by Five:

“Unfortunately, we can confirm this morning’s incidents in Paris. We strongly condemn this severe violence with which Uber riders and partners were confronted,” Uber said in a statement. “That taxis chose to use violence today is unacceptable, that they chose to strike is their business.”

Ms Borlongan, who was not seriously injured in the incident, told the FT via Twitter:

“We were on a freeway. Parked cabs blocked several lanes to filter traffic, singling out car services and cab drivers not on strike… They were set up more like checkpoints than picket lines… I don’t have numbers, but they were targeting what we call VTCs inFrance: Uber but also similar car services and motortaxis.”

Companies such as Uber and Hailo have been arguing with regulators all over the world for years now. Taxi drivers and their unions have been leading the charge that these e-hailing apps create unfair competition because they sidestep the rules that regular cabbies must adhere to.

That has led to a patchwork of regulations, one of the more unusual of which came into effect in Paris on January 1, 2014: car services (but not licensed taxis) must wait 15 minutes after receiving a request before picking up their passengers. (Uber’s average pickup time in other major cities is around 5-10 minutes, according to its support pages, with some high-density places such as San Francisco often as low as 3 minutes.)

Uber has said it plans to challenge the regulation but the French taxi unions want it to go further still, accusing limos of picking up passengers from the curb, despite rules prohibiting them from doing so. Hundreds of Parisian taxi drivers went out on strikeagainst VTCs on Monday, which have grown since a government cap was relaxed in 2009, and in protest at an increase in VAT.

A similar battle is brewing in neighbouring Belgium, Tech.eu reports, where Uber wants to launch despite the now-familiar combination of regulatory hurdles and taxi union opposition.

But in other cities, such as San Francisco, Uber and their competitors have been able to get the go-ahead from local governments. Overall, the arguments have not prevented Uber from achieving rapid growth: the company said in November that its revenues were growing by 20 per cent a month and the service now operates inaround 70 cities.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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