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[威到上FT]Police raid Uber’s Hong Kong office
Police raid Uber’s Hong Kong office
Bryan Harris in Hong Kong[/size=6][/b]
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Uber has been hit by another setback after police raided the ride-hailing app’s Hong Kong office following a sting operation that led to the arrests of five drivers.
The drivers, who had allegedly accepted fares from undercover police officers, were also accused of driving without the required permits and insurance, local media reported.
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The raid is the latest in a string of challenges facing the company as it 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 in the process.
In Australia, the US-based company had its Sydney offices raided by government investigators, with the Australian government insisting that Uber’s 12,000 local drivers must collect and pay the country’s 10 per cent goods and services tax from August 1.
Hong Kong has also proved a tough market to crack, with Uber facing intense competition from a reliable, cheap and ubiquitous local taxi service.
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 also 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 on Tuesday voiced support for its drivers.
“Uber ensures that all rides are covered by insurance and all drivers on the platform undergo an extensive background check,” the company said in a statement. “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.”
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Hong Kong police warned the public not to take rides from unlicensed services.
Uber last year struck an optimistic note on its role in Hong Kong, saying the city “prides itself on having a multitude of choices”.
“That’s what Uber offers . . . to anyone who’s willing to pay a little more for a better experience,” said Allen Penn, head of Uber Asia.
Uber rides in Hong Kong are typically more expensive than in other cities.
Two luxury saloons and three people carriers were seized following the arrests from Tuesday’s sting operation, which prompted police warnings about the dangers of travelling with unlicensed drivers.
Additional reporting by Gloria Cheung
Bryan Harris in Hong Kong[/size=6][/b]
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs; and Copyright Policy for more detail. Email [email protected] to buy additional rights. http://www.ft.com/cms/s/0/6759b08a-4000-11e5-9abe-5b335da3a90e.html#ixzz3iWLbMJ6K
Uber has been hit by another setback after police raided the ride-hailing app’s Hong Kong office following a sting operation that led to the arrests of five drivers.
The drivers, who had allegedly accepted fares from undercover police officers, were also accused of driving without the required permits and insurance, local media reported.
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs; and Copyright Policy for more detail. Email [email protected] to buy additional rights. http://www.ft.com/cms/s/0/6759b08a-4000-11e5-9abe-5b335da3a90e.html#ixzz3iWLdvoF1
The raid is the latest in a string of challenges facing the company as it 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 in the process.
In Australia, the US-based company had its Sydney offices raided by government investigators, with the Australian government insisting that Uber’s 12,000 local drivers must collect and pay the country’s 10 per cent goods and services tax from August 1.
Hong Kong has also proved a tough market to crack, with Uber facing intense competition from a reliable, cheap and ubiquitous local taxi service.
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 also 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 on Tuesday voiced support for its drivers.
“Uber ensures that all rides are covered by insurance and all drivers on the platform undergo an extensive background check,” the company said in a statement. “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.”
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs; and Copyright Policy for more detail. Email [email protected] to buy additional rights. http://www.ft.com/cms/s/0/6759b08a-4000-11e5-9abe-5b335da3a90e.html#ixzz3iWLks7uC
Hong Kong police warned the public not to take rides from unlicensed services.
Uber last year struck an optimistic note on its role in Hong Kong, saying the city “prides itself on having a multitude of choices”.
“That’s what Uber offers . . . to anyone who’s willing to pay a little more for a better experience,” said Allen Penn, head of Uber Asia.
Uber rides in Hong Kong are typically more expensive than in other cities.
Two luxury saloons and three people carriers were seized following the arrests from Tuesday’s sting operation, which prompted police warnings about the dangers of travelling with unlicensed drivers.
Additional reporting by Gloria Cheung
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