Uber Is Suspending Its Operations In Spain
Pablo Blazquez Dominguez/Getty ImagesUber will temporarily suspend operations in Spain, the company confirmed in a blog post Wednesday.
The company's decision to halt operations follows an injunction issued against it by a Spanish court.
The court decided to uphold a complaint filed earlier this month by the Association Madrileña Del Taxi, an organization of Madrid taxi drivers.In Spain, Uber has featured UberPOP, a lower-cost service that lets drivers use non-luxury vehicles and allows passengers to split the fare. Uber has operated in Spain since April.
Drivers in Spain "lack the administrative authorization to carry out the job, and the activity they carry out constitutes unfair competition," Spanish court services said earlier this month, according to BBC. At the time, the judge cited "unfair competition" as a reason to ban the service from the country.
In its blog post, called "Respecting the law and temporarily suspending UberPOP in Spain," Uber has noted that the company plans to appeal the ruling. The company also says it plans to "collaborate with Spanish politicians" to create laws to allow for sharing economy services like Uber.
This behavior is a stark contrast to Uber's notoriously aggressive expansion tactics. Earlier this month, Uber agreed to temporarily stop operating in Portland, Ore. - the first time Uber had ever agreed to stop operating voluntarily in a US city. Uber has also pledged to collaborate with officials in India. The company's services in Delhi were banned after a woman was allegedly raped by her Uber driver.
This shift in Uber's behavior from ruthless to collaborative can possibly be attributed to a conscious attempt from inside the company to change its culture. Last month in a blog post announcing the company's latest $1.2 billion round of funding, Uber CEO Travis Kalanick said: "Fortunately, taking swift action is where Uber shines, and we will be making changes in the months ahead. Done right, it will lead to a smarter and more humble company that sets new standards in data privacy, gives back more to the cities we serve and defines and refines our company culture effectively."
Uber has been banned in Belgium, France, the Netherlands, and Spain in Europe. Uber faces regulatory hurdles in South Korea, the Philippines, India, Taiwan, Thailand, and several US cities and states, including Portland, Ore., and Nevada.