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Uber hit by fresh Hong Kong setback after sting leads to arr

  • Author:naky
  • Source:www.diecastingpartsupplier.com
  • Release on:2015-08-18
Uber has suffered another setback after police raided the taxi-booking app’s Hong Kong office and seized computers following a sting operation that led to the arrests of five drivers.

The drivers, who had allegedly accepted fares from undercover police officers, were accused of driving without the required permits and insurance, local media reported.
The raid is the latest in a string of challenges as the company attempts to break into the greater Chinese market.

In April, police in mainland China launched a night-time raid on Uber’s office in the southern city of Guangzhou, seizing computers and phones and accusing the company of running an “illegal car business”.

Uber is fighting regulatory battles in jurisdictions around the world as it expands, disrupting the taxi industry.
The US-based company had its Sydney offices raided by government investigators, with the Australian government insisting that Uber’s 12,000 drivers must collect and pay the 10 per cent goods and services tax from August 1.

Hong Kong has proved a tough market to crack, with Uber facing intense competition from reliable, cheap and ubiquitous local taxi services.

Average taxi fares in the city are less than half those in New York and a third of those in London, according to research from Deutsche Bank.
The former British territory has more than 18,000 taxis serving its roughly 7m residents — fewer than London’s 22,000 black cabs but more than the Big Apple’s 13,000.

Uber Hong Kong yesterday supported its drivers. “Uber ensures that all rides are covered by insurance and all drivers on the platform undergo an extensive background check,” it said. “We stand by our driver-partners 100 per cent and welcome the opportunity to work closely with the authorities towards updated regulations that put the safety and interests of riders and drivers first.”
Hong Kong police warned the public not to take rides from unlicensed services.
Additional reporting by Gloria Cheung