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Uber France Leaders Arrested For Running Illegal Taxi Company 334

An anonymous reader writes: Two Uber executives were arrested by French authorities for running an illegal taxi company and concealing illegal documents. This is not the first time Uber has run into trouble in France. Recently, taxi drivers started a nation-wide protest, blocking access to Roissy airport and the nation's interior minister issued a ban on UberPop. A statement from an Uber spokesperson to TechCrunch reads: "Our CEO for France and General Manager for Western Europe were invited to a police hearing this afternoon; following this interview, they were taken into custody. We are always available to answer all the questions on our service, and available to the authorities to solve any problem that could come up. Talks are in progress. In the meantime, we keep working in order to make sure that both our customers and drivers are safe following last week’s turmoils."
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Uber France Leaders Arrested For Running Illegal Taxi Company

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  • by EllisDees ( 268037 ) on Monday June 29, 2015 @06:07PM (#50015335)

    It's not like they need to have a physical presence for their app to work there.

    • Re: (Score:3, Insightful)

      They need drivers, and if they can arrest executives, they can likely arrest drivers as well. Interestingly, France has a heavily unionized workforce...so maybe the Uber drivers need to unionize (jk).

      And while France may have a legal basis to take those actions, I hate that they give the union protestors, who damaged and disrupted so much, what they wanted. It sends a message for others to follow suit. France is in a pickle.
      • by Jesrad ( 716567 ) on Tuesday June 30, 2015 @03:12AM (#50017249) Journal

        France has a heavily unionized workforce

        Nope. Norway or Italy have heavily unionized workforces, whereas France has the least-unionized workforce [oecd.org] (7.7%) in Europe save for Estonia (6.8%).

        However, France has some of the richest, most politically influential unions, by a huge margin. [lepoint.fr] To put it simply, unions in France are like parallel political parties, with their own occult sources of funding, high-ranking members inflitrated in every institution, and legal priviledges that protect their position.

        But french taxis V.S. Uber is an entirely different, though related, issue.

        To make light of the sorry state of Uber in France, you only need to know a few things:
        - just a few months ago, Agnès Saal was mediatically ousted from her position as head of the INA for allegedly squandering taxpayers' money on... taxi rides (40 000 euros' worth)
        - then a couple weeks ago, we learned that the amount squandered was actually an order of magnitude larger than previously stated - there was simply noway to spend that much on taxis
        - also notice that Jean-Jacques Augier, the previous CEO of G7 taxis, the biggest taxi company in France, was the financing director of François Hollande's presidential campaign in 2012
        - G7 taxis' current CEO is a close friend of Hollande's Parti Socialiste, and was involved in François Mitterrand's own campaigns too

        The intimidation campaign that is raging on against Uber in France is simply how the politicians currently in power are defending some of their illegal sources of funding. The seemingly "out of proportion" violence of this campaign is simply a reminder that, in France, you just don't ask about political parties' [wikipedia.org] or unions' [wikipedia.org] money unless you're ready to die (just like Robert Boulin, Pierre Bérégovoy and judge Pierre Michel died).

  • Not surprised (Score:4, Insightful)

    by Anonymous Coward on Monday June 29, 2015 @06:07PM (#50015337)

    If taxi drivers have to buy licenses and following certain regulations, shouldn't Uber do the same or are they already?

    • Re:Not surprised (Score:4, Insightful)

      by crioca ( 1394491 ) on Monday June 29, 2015 @06:32PM (#50015435)
      Alternatively; if Uber drivers don't need to buy licenses and follow certain regulations, why should taxi drivers? It seems like Uber is working well enough under a de-regulated environment.
      • Re:Not surprised (Score:4, Insightful)

        by Mr D from 63 ( 3395377 ) on Monday June 29, 2015 @06:34PM (#50015447)

        Alternatively; if Uber drivers don't need to buy licenses and follow certain regulations, why should taxi drivers? It seems like Uber is working well enough under a de-regulated environment.

        Then the very environment that Uber thrives on would be gone. They'd have to adapt as well.

        • Oh no, the horror. Someone trying to sell something has to adapt to better serve their customers. I liked the protectionist middleman system so much more.
          • Stupid. Read up on something called "history". We already tried what Uber is doing, only without the "over the internet" part. It didn't work out so well.

            It is precisely why the taxi industry is like it is now.

      • Re:Not surprised (Score:5, Insightful)

        by Rei ( 128717 ) on Monday June 29, 2015 @07:18PM (#50015665) Homepage

        Uber drivers are subsidized by everybody else. Taxi drivers have to pay high insurance rates because the act of driving a long distance every day for a ton of strangers is a job that inherently leads to a much higher statistical rate of payouts. If they're driving as a taxi on regular car insurance, it's you that's paying the bill for their swindle of the insurance system.

      • Is an official Taxi more expensive than Uber? Certainly. But a Taxi driver is a job that can sustain a family. Uber on the other hand strives to turn all of that segment into cheap dayjob/sidejob territory, while reaping the main benefits for itself.
        That's starting to become a staple of our "new society" - everything cheaper, faster, less regulated... except it also destroys regular jobs and makes the lives of the professionals involved less secure and less predictable.

        Not all regulations are bad regulation

    • by Jesrad ( 716567 )

      You know nothing.

      France established the taxi licenses at the demand of taxi drivers, to help them self-organize. Then the taxi drivers pressured for quotas of licenses to stop new-comers from entering the business and establish a corporate monopoly.

      The licenses were issued free of charge by the state, and were not to be transferred to someone else by the isuee. The taxi drivers are trading and reselling these licenses illegally, for large sums of money (on par with house prices). The taxi drivers are doing

  • by MouseR ( 3264 ) on Monday June 29, 2015 @06:11PM (#50015357) Homepage

    In Quebec, it costs upwards of 200,000$ CDN to have a taxi license.

    Drivers spent their entire life's saving enough to buy their own license while they lease another one's. It's their only retirement plan: lease a license they earned to buy.

    No wonder they're pissed.

    • by pecosdave ( 536896 ) on Monday June 29, 2015 @06:17PM (#50015365) Homepage Journal

      It's their own fucking faults. They lobby to make sure this is the system that's in place to prevent competition from companies like Uber. They got the laws they paid for, it's the people who bought the first wave of licenses/medallions whatever that made bank, now everyone else has to deal with it.

      An upstart breaking that system is exactly what real business needs.

      • by quantaman ( 517394 ) on Monday June 29, 2015 @06:40PM (#50015477)

        It's their own fucking faults. They lobby to make sure this is the system that's in place to prevent competition from companies like Uber. They got the laws they paid for, it's the people who bought the first wave of licenses/medallions whatever that made bank, now everyone else has to deal with it.

        An upstart breaking that system is exactly what real business needs.

        Medallion owners bought the medallions with the understanding that they were buying into a limited monopoly.

        I'm not opposed to changing this agreement, in fact I encourage it, but if you're going to do so you need to compensate who bought the medallions.

        • by Anonymous Coward on Monday June 29, 2015 @06:55PM (#50015553)

          >Medallion owners bought the medallions with the understanding that they were buying into a limited monopoly.
          Shit happens!

          >need to compensate who bought the medallions
          Nope! My shares went down in the last crash, noone compensated me!

          • by 140Mandak262Jamuna ( 970587 ) on Monday June 29, 2015 @07:12PM (#50015651) Journal
            According to TPP pushed by Obama and supported by GOP, if foreign company invested in these medallions and they lose value because of some change in the law/regulation they can sue the federal government for compensation. This bail out is not available for domestic investors. Only foreign investors can do this. And only the foreign investor has the standing to sue, not unions, not labor activists, not local governments. And they will be judged by fellow lawyers who could be representing other parties at the same time.
            • Sadly there is something worse than the protection rackets that already exist. Too bad most of these people will just yell "tinfoil hat!".

            • According to TPP pushed by Obama and supported by GOP

              BTW, Obama is a Democrat.

          • WTF have your shares got to do with your desire to deliberately trash the life savings of millions of taxi drivers in the western world?. They entered into a contract with the government, if the government breaks that contract by changing the law then drivers should definitely be fairly compensated. Business confidence is important, if the government started breaking contracts as you suggest the economy would go down the toilet faster than a new york rat.
            • by chihowa ( 366380 ) on Monday June 29, 2015 @08:47PM (#50016111)

              WTF have your shares got to do with your desire to deliberately trash the life savings of millions of taxi drivers in the western world?. They entered into a contract with the government...

              Typically, taxi medallions aren't sold by the government anymore. They're typically sold by their previous holders and the high prices reflect their scarcity and perceived value. The market decides this value (even when they're auctioned off by the state), so there isn't any guarantee that they'll maintain that value. Any contracts that exist say nothing about limiting the supply or compensating medallion-holders for any speculative prices they paid. Buying a medallion for $800k is just as speculative as buying an $800k house or $800k worth of stock. There are no government guarantees that they will maintain value.

              tl;dr... The economics of the taxi medallion situation are extremely similar to shares in a company. The "contracts" that you're referring to don't exist (at least in the form that you image).

        • by Rockoon ( 1252108 ) on Monday June 29, 2015 @07:21PM (#50015685)

          Medallion owners bought the medallions with the understanding that they were buying into a limited monopoly.

          ..and I bought stock in oil reserves with the understanding that I was buying into a limited monopoly. Then Saudi Arabia started dumping oil on the market. Should the government make me whole again, too?

          It seems that you are the victim of a common misconception: That the State is the one selling the medallions that cost so much. Wrong, ignorant fuck.

        • Why?

          Compensate them because their government backed monopoly in which they prevented hundreds if not thousands of others from profiting because they worked the system in such a way that guaranteed the laws of supply and demand didn't affect their business? They're lucky there isn't a lynch mob coming after them for the affront to the natural market, losing a protected monopoly is no reason to reward them.

          • by Uberbah ( 647458 )

            in which they prevented hundreds if not thousands of others from profiting because they worked the system in such a way that guaranteed the laws of supply and demand didn't affect their business?

            You mean, because these people actually work for a living? If they were ant-competitive vulture capitalists, then it would not just be okay, but the desired result.

        • by PopeRatzo ( 965947 ) on Monday June 29, 2015 @08:02PM (#50015913) Journal

          Medallion owners bought the medallions with the understanding that they were buying into a limited monopoly.

          Maybe it should be clarified here that when you see someone claim that it's not the government charging $200,000 for a taxi medallion, that's just the going price on the secondary market. You know, good old capitalism, where people are bidding up the price of a necessarily limited commodity.

          The taxi authority looks at population, traffic flow and transportation needs and comes up with a number of taxis that they think should be on the street. Every year, they add new medallions into the system, usually with a lottery. The idea is not so much to protect the cab drivers (cities don't care about cab drivers. If they did, they wouldn't make the minor traffic fines, like your cab being 10 inches over the line of a designated taxi waiting zone, as much as $500 (which practically wipes out the cab driver's week), but to keep the number of taxis from getting so crazy that you have cabs clogging up city centers, fighting for fares.

          Another think medallions are used for is to ensure that someone in an underserved part of the city can get a cab. In my city, certain medallions are required for certain times to initiate or terminate a certain percentage of fares in certain parts of the city.

          • by awol ( 98751 )

            Medallion owners bought the medallions with the understanding that they were buying into a limited monopoly.

            Maybe it should be clarified here that when you see someone claim that it's not the government charging $200,000 for a taxi medallion, that's just the going price on the secondary market. You know, good old capitalism, where people are bidding up the price of a __un__necessarily limited commodity.

            The taxi authority looks at population, traffic flow and transportation needs and comes up with a number of taxis that they think should be on the street. Every year, they add new medallions into the system, usually with a lottery. The idea is not so much to protect the cab drivers (cities don't care about cab drivers. If they did, they wouldn't make the minor traffic fines, like your cab being 10 inches over the line of a designated taxi waiting zone, as much as $500 (which practically wipes out the cab driver's week), but to keep the number of taxis from getting so crazy that you have cabs clogging up city centers, fighting for fares.

            There you go, I fixed that for you.

            If the regulators approach to the problem described was the correct one then why can't I get a fucking cab when I want one? There are many more solutions to the problem of oversupply that you identify, indeed one can quite happily argue that Uber actually have one.

        • I'm not opposed to changing this agreement, in fact I encourage it, but if you're going to do so you need to compensate who bought the medallions.

          I bought shares in a company should I be compensated when the company folds? Every investment carries risk. Leaving my money in the bank in a savings account carries risk too, just a lower risk with a lower reward.

          Why are people always entitled to compensation? Why are companies entitled to go bust and get bailed out? What happened to just letting things run its course?

          • by mysidia ( 191772 )

            I bought shares in a company should I be compensated when the company folds?

            Hey, sure.... your share of any value that is left over after all the higher-priority claimants were paid.

            But Taxi medallions are not like shares in a company. The government doesn't have any duty to maintain or attempt to increase their value.

            If the local authority sees fit to do so, they can likely issue out 50000 medallions for auction over an X month period, or whatever number they want, to generate more cash for the city,

      • by jklovanc ( 1603149 ) on Monday June 29, 2015 @06:43PM (#50015485)

        This assumes that all the laws regarding licensed taxis were instigated by taxi owners. That is patently not true. Many of the regulations were created in response to problems caused by unlicensed taxis. Here are some of the regulations that cost licensed taxis money.
        - Minimum number of cars on the road/company.
        - ratio of handicap accessible taxis.
        - standards of cleanliness.
        - language standards
        - anti-discrimination
        - driving record checks
        - criminal record checks
          - frequent vehicle inspections
        - professional driver's licenses

        While it is not perfect there is a mechanism to pull bad taxis off the read. Without being able to pull a license that mechanism is gone.

        The reason there is a limit on competition is to create an environment where owners can make a living and still follow the regulations imposed on them.

        An upstart breaking that system means going back to the bad days when taxis were unregulated.

        • Re: (Score:3, Informative)

          by idji ( 984038 )
          Uber has to do these checks anyway before they are allowed to take the drivers.
          The "bad days" of unregulation were long before the digital age - we have better ways of checking these people now, including star ratings within the Uber app - if the driver doesn't have 5 stars, just reject them.
          The goal shouldn't be so that taxi drivers can make a living, but rather that people can get from A to B how they want.
          The fight here is about cronyism, protectionism and the scam of making taxi drivers pay $200,000
          • Uber has to do these checks anyway before they are allowed to take the drivers.

            Not all and they could drop them at any time.

            The goal shouldn't be so that taxi drivers can make a living, but rather that people can get from A to B how they want.

            Right now Uber is a new thing and many people are interested in it. Wait a few years when licensed taxis are out of business and there are no taxis on the road when you need them. Wait till there are few if any handicap accessible vehicles and few will pick up certain minorities. The problem with star ratings is that they can be misused. Give every "insert minority here" a negative rating and see what happens.

            • Wait a few years when licensed taxis are out of business and there are no taxis on the road when you need them.

              This isn't an inexorable death spiral brought on by price warfare. It's eminently fixable by just joining the 21st century. Cab companies, who already have the advantages of incumbemcy, capital, licensed labor force, tailored infrastructure, and favorable regulations, could pretty much close the gap just by creating a decent app and guaranteeing credit card acceptance. It's not about skirting regs to sustain cut rate pricing, it's about convenience.

              Wait till there are few if any handicap accessible vehicles and few will pick up certain minorities.

              Lol wut?

        • So the state cleaning it up is the solution instead of establishing a brand with a good reputation?

          If I have to call a taxi I'm going to call the one I'm less likely to get out of with a case of fleas.

          • That is only one small aspect of the reasons for regulations. What happens when all the brands have a bad reputation?

            • If they all have a bad reputation I start the good one, advertise myself as the less-fleas brand and cash in on that market.

          • by Uberbah ( 647458 )

            So the state cleaning it up is the solution instead of establishing a brand with a good reputation?

            And when market consolidation means the regulation-free monopoly DGAF about it's reputation, passengers, pedestrians, or you?

        • - Minimum number of cars on the road/company.

          A problem that solves itself if you permit anyone to perform as a taxi.

          - ratio of handicap accessible taxis.

          That actually seems useful. Could better be served by handicapped-specific public mobility services, however.

          - standards of cleanliness.

          That must be nice. No taxi I've ever been in has been clean. Some have been not too nasty.

          - anti-discrimination

          False everywhere in the world.

          - driving record checks
          - criminal record checks

          Basically worthless

          - frequent vehicle inspections

          Everyone should have these based on mileage

          - professional driver's licenses

          A scam to produce revenues

          • A problem that solves itself if you permit anyone to perform as a taxi.

            Sometimes the free market fails. For example at 3AM on a Monday morning will be almost impossible to find a taxi.

            That must be nice. No taxi I've ever been in has been clean.

            Did you lodge a complaint?

            False everywhere in the world.

            Most countries have something similar to the Bill or Rights. If there is no licensing there is no way to pull a license for discrimination.

            Basically worthless

            So you think criminals should be able to drive people around? Sorry many don't agree.

            Everyone should have these based on mileage

            Most taxi inspections are based on months between inspections. It is very easy to see a sticker and ensure that the taxi has been properly inspected.

        • An upstart breaking that system means going back to the bad days when taxis were unregulated.

          Then that alone should already be enough incentive for people to use regulated taxis rather than Uber. If I end up with taxis refusing a fare for being too short or telling me they're going to take 30-45mins for pickup then of course I'm going to use Uber instead. The problem is taxis have a protected monopoly so there is no competition to worry about, you can say the regulations mean they can't discriminate on fares and that this will mean there are always enough taxis but the fact is that shit does happen

        • by afgam28 ( 48611 )

          On the surface these regulations sound useful, but I've still had a lot of bad experiences in taxis. Not every time I get into a cab, but it's happened a not-insignificant number of times. I've had multiple taxi drivers pretend that the meter is broken, and then try to charge me a ridiculously overpriced fare (which I refused to pay). I've been verbally abused because a driver didn't feel I was travelling far enough to be worth his while. Many drivers smell bad, and have dirty cabs. Female friends have been

          • Uber has not been around very long. Wait till the drivers have become fed up with the idiots that get in their car and quit. Sure reviews help but for every isiot down reviewed there will be another idiot starting to use Uber. Wait till enough drivers get bad reviews and Uber does not have enough drivers. They will "normalize" the reviews to make everyone look better. Wait till there are no cabs around when you want one because there is little money to be made. Right now Uber is taking the gravy trips from

    • Its the same here in Melbourne with taxi licenses and newsagent licenses. To sell newspapers you needed to front up with 200 kAUD for the license. Unfortunately the newsagent licenses are worth next to nothing now and a lot of people got burned.

      • by MoaDweeb ( 858263 ) on Monday June 29, 2015 @06:39PM (#50015463)
        New Zealand liberalised its taxi system about 25+ years ago. The Gov't allowed anyone to setup a taxi company who had the appropriate car licence endorsement, log books and passed a vetting process for its drivers. etc.

        Uber have shown up and decided that they do not have to have vetted drivers, log books etc. 'cos they are Uber!
        The Police are investigating.

        The barriers for entering the NZ market are quite low but even then Uber do not think they should apply to them.
        • I'm old enough to remember the days before the Taxis industry in New Zealand was deregulated. You couldn't hail a cab in the street, the only place they would pick you up from was a taxi stand.
        • by Eythian ( 552130 )

          Well, in NZ the drivers have to have both a passenger license, and a private hire license, which is more than a taxi driver needs. The main issue is that you can either be paid by the hour, agreed before-hand, or you charge using a licensed meter. Uber does neither.

    • I would have the slightest shred of sympathy if taxi unions hadn't used their protectionist racket to provide the nastiest most unpleasant rider experience. If taxi companies were really good at providing good service and uber came in with some sort of unlicensed fly by night business, then it would be clear. But even if uber were the same price as cabs, I would choose uber every_single_time. Maybe cabbies should think on why that is, and try to make an experience that is good for the customer so they win t

      • by larkost ( 79011 )

        If you are right, then why can't/won't Uber compete legally with medalioned taxi companies? Why do they have to pretend that the rules don't apply to them to undercut existing taxies? I completely agree that the taxi market was slow to adapt to apps, and that created a market open for a system like Uber, but the way they have "disrupted" the market by ignoring the existing laws rather than trying to work inside them is simply disgraceful.

        • If you are right, then why can't/won't Uber compete legally with medalioned taxi companies?

          So we have to argue circles with you? you have been told why

          The medallions are of limited supply because those taxi companies, the ones with the monopoly on them, lobby government to keep them in limited supply.

          You have proven to us that the Statists dont give a fuck about the facts, that we have to argue endlessly in circles with you. Go fuck yourselves.

        • If "within existing laws" means having a medallion, that simply isn't possible, as there are not enough available. Up until a year or two ago, there were less than 500 medallions total in San Francisco.

          There are other problems too. Various laws prevent Uber from performing a background check going back more than 7 years. As a regulated business, Taxi companies are required to (and able to) run better background checks going back 99 years.

          As for pricing, taxi fares in San Francisco are ridiculous, like a 50%
      • I would have the slightest shred of sympathy if taxi unions hadn't used their protectionist racket to provide the nastiest most unpleasant rider experience.

        What was the last time you took a taxi, and in what town? Maybe I notice because I drove a cab some decades ago, but I take cabs in almost every city I travel to - and I travel a lot - and I can't remember the last time I had a rude cab driver.

        Maybe the reason your experiences (if they're real experiences and not just more bullshit) with cabs are bad i

    • by rtb61 ( 674572 )

      The price of taxi licences comes about from not what you implied, "Drivers spent their entire life's saving enough to buy their own license", a wildly false claim but the from the reality of companies buying up all the licences, limiting availability and lobbying to prevent more licences being issued, so they can pay minimum wage to new immigrants to drive those taxis whilst charging a fortune to customers. Higher insurance comes about because the poor wage slave gives not one crap about the taxi.

      So wan

      • There has been an effort pushed by cabdrivers in Chicago to do exactly what you describe. It has been resisted by the city's Taxi Authority, which despite what people here might think, are definitely not in bed with the drivers. In fact, the city government HATES cab drivers. They make their lives miserable in ways you can't imagine. Minor parking violations can go $800-1500. The city treats cabbies like dirt.

  • by rahvin112 ( 446269 ) on Monday June 29, 2015 @07:01PM (#50015591)

    Regardless of whether the laws as written are correct (I would argue that the very existence of a "medallion" that costs more than the filing fee is evidence of collusion between the taxi authority and the taxi's) Uber has shown direct contempt for the rule of law. Their CEO's frequently ignore court orders, not only that but they frequently do the exact opposite of what a court has ordered. In Korea the authorities were forced to start fining drivers record amounts, in Germany the authorities had to threaten to seize cars and fines in excess of $25K. None of this should be necessary as Uber should have shut down their platform in the area when the courts ruled against the legality of their service. If they didn't like the ruling they should have complied while challenging the ruling.

    I've said all along the only way to get Uber to comply with the law is stop arresting drivers and start arresting executives for facilitating breaking the law. I'm happy to see the French are finally going to follow through at least partly, I doubt targeting these executives will do the trick the Uber corporate executives will simply let them burn, though the seizure of communications may give them the evidence they need to really get the law breaking to stop, that is to issue InterPOL red notices (warrants) for the CEO and heads of Uber corporate. I firmly believe that Uber acts in total disregard of the law because of their CEO and that the only way to get it to stop is directly go after that CEO. Once he's looking at a jail term I suspect Uber will suddenly become a law abiding business.

    IMO Uber acts as a corrupt organization with contempt of the law and should be targeted under RICO statutes.

    • So what? Have you seen who writes laws? A bunch of vote-leeching sociopaths that span the moral spectrum between used car salespeople and outright pedophiles... Let's just support the whims of every elected bunch of assholes. War, slavery, genocide, hey, gotta do it! It's the law!

      Seriously, this is one of the lamest reasons for anything, ever.

  • by HuguesT ( 84078 ) on Tuesday June 30, 2015 @01:51AM (#50017027)

    Uber operates outside the bounds of the law in France. This is well documented. There are two sets of law that they do not obey. The first is one regulating car drivers that are not taxis. It is legal in France to operate a car service to drive people from A to B but you need to abide by some restrictions. The car cannot be hailed, only booked. The driver must have some qualification, etc. Uber does not abide by these laws. The second set of law protects the consumer. In particular, data must be viewable and deletable by the consumer, and they cannot be retained indefinitely. Again Uber does not follow the law.

    Recently the french equivalent to state department pointed out to Uber that they needed to change some things, so what did they do? They opened service in 5 new cities with no change. This was seen as provocation, and so obviously the top executives were brought in for questioning. The french cannot state on the one hand that something is illegal and on the other let it happen. They had to act.

    Now maybe the law needs to change, this is an important debate. In the meantime in a law-based country the law needs to be upheld.

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