Uber is shuttering its operations in Denmark after the Danish government tightened regulations and Uber were defeated in a bitter legal battle

Uber announced in a press conference they will close in Denmark on April 18.

“It is not necessarily a farewell to Denmark, but a message to politicians that we must draw consequences from the law that is on the table, and that we can’t live with it as it appears now,” an Uber spokesman told the briefing.

The new legislation requires all taxis – which the Uber would be classified as, to have expensive seat sensors, video surveillance, and taxi meters. Let’s just say that would not be practical economically for a company like Uber who rely on pretty basic Toyota Prius’s and other similar models.

In Denmark Uber claim to have 2k drivers and 300k users, so this will send shockwaves in the Danish market and we may well see a Danish company dominate. It will be interesting to see if the Danish taxi apps such as Drivr can capitalise on the new rules.

Uber have faced growing regulatory problems as in many European countries with significant difficulties in Germany, France and several other countries.

In France, Chauffeur-Privé are smashing it and building a very strong business that when I have been in Paris was super reliable and impressive. In the middle east GCC and parts of asia, Abraaj Capital backed Careem are increasingly dominating the regions and expanding very very fast. So a very fierce competitive landscape!

Interesting times for Uber, with Leadership turmoil, allegations from employees of sexual discrimination, legislative crisis’s and PR fires to fight across the world, I wouldn’t be surprised if Travis Kalanick slowly transcends to the George Clooney-esque grey silver fox look in the coming years, because he surely has a lot to keep him up at night…

Pulling out of Denmark is big news and it seems money can’t always buy you love….

If you would like to have your company featured in the Irish Tech News Business Showcase, get in contact with us at [email protected] or on Twitter: @SimonCocking

Pin It on Pinterest

Share This