Ride-hailing group Uber Technologies will withdraw services in Denmark next month because of a taxi law that sets out new requirements for drivers, for example, compulsory fare meters, the organization said on Tuesday.
Uber has faced headwinds since its application went online in Denmark in 2014 as local cab driver unions, organizations and government officials grumbled that Uber posed unfair competition by not meeting legal standards required for built up taxi firms.
Uber, which says about 2,000 Danish drivers and 300,000 riders use its application, said in an announcement that it would close down its services in Denmark on April 18 because of the new law.
In spite of the minority liberal government’s ambitions to deregulate the taxi business and accommodate new operations like Uber, the taxi law presented in February presented measures, for example, mandatory fare meters and seat sensors.
“For us to operate in Denmark again the proposed regulations need to change. We will keep on working with the government with the expectation that they will update their proposed controls and enable Danes to enjoy the benefits of modern technologies like Uber,” Uber said.
Two Danish Uber driver were fined in November for disregarding taxi laws and in December Uber’s European division was indicted by Danish public prosecutors on charges of helping those drivers in violating taxi laws.
Uber said it would allocate resources to help Danish Uber drivers through the shutdown procedure.