A court order against Uber Technologies that was delivered by a court in Colombia has forced the ride hailing company to stop operating in Colombia at the end of this month. The company made the announcement this week while calling the court order as “arbitrary” and termed it as a violation of its right to due process.
Following the court order that amounted to charges that Uber had violated competition rules, the government of this Andean country ordered the United States based company to stop its operations in the country,
In order to defend the rights of 2 million users and 88,000 drivers in the country, Uber said that it will use all the available legal avenues before it.
Its exit from the country was also blamed by Uber on a lack of regulation for ride-hailing apps in Colombia, the company said in a statement.
“Uber was the first company to offer the country an innovative and trustworthy mobility alternative. Today, six years later, Colombia is the first country on the continent to close its doors to the technology,” the company said.
Further, according to analysts and entrepreneurs the status of Colombia as the second-most popular destination for entrepreneurial investment in the region after the much larger Brazil could be threatened because of the regulations and business ;laws currently used in the country which are out-dated.
According to local reports citing sources with information about the matter, Uber could sue the Colombian government under the terms of Colombia’s free trade agreement with the United States. This was reportedly conveyed to the legal agency of the government by the company through a letter this week.
Uber did not say anything to the media about the contents of the letter because the contents were private in nature.
This is not the first instance for Uber to face regulatory hurdles. It has found itself embroiled in legal issues in a number of countries of the world where it operates including in its home country of the US. A recent regulation passed by the state of California essentially has made it very difficult for companies to qualify their workers as contractors instead of as employees. Uber has repeatedly said that its drivers are properly classified as contractors.
(Adapted from Engadget.com)