Turkish President ‘Recep Tayyip Erdogan’ told in a Ramadan dinner on Friday that Uber’s branch in his country is just “over”. He said also that the interior ministry of his government gave the order to end up Uber’s operation.
According to Bloomberg’s report, Erdogan also said that Turkey’s cab market does not need Uber’s transportation system anymore and the authorities are willing to do what is “essential” or What is “necessary” to push it out:
There is no need such things in our country anymore. We have our own cab system that is developed so far said, Erdogan. Uber’s authority used to say that Europe has got it but I would say who cares? We will decide on these things where how to develop and maintain a transportation system. Our interior ministry gave the orders to stop the Uber’s operation in our country. Traffic police will be able to tackle this situation and they know how to control.
Uber started offering its services in Istanbul’s $1.5 billion taxi market in 2014. They have taken more than 18,000 local yellow cabs in the city of 17 million people. The San Francisco-based operator has faced mounting to protest from yellow-cab drivers, who have just lost their market share as they struggled to maintain their cars and the quality of services with the lowest charges in the world.
German broadcaster ‘Deutsche Welle’ is a famous news media has just reported that the proclamation followed and intense protested by Istanbul taxi drivers. Taxi Driver claimed Uber is operating their cap system that’s creating violation and going to against of Turkish laws. According to Erdogan, critics have labeled an autocrat as he spent few years to eliminating checks on his power and arresting thousands of real imagined opponents going up for re-election in three weeks and backed by the biggest taxi industry groups.
According to Bloomberg, Erdogan said the legal interference is that Uber operates under D-2 licenses, which cost around 3,550 liras (almost $760) annually and are not valid for taxi operation. Standard taxi license plates cost significantly more than 1.6 million liras (almost $360,000).
Rules are recently implemented in Turkey that means “fines will be increased slowly for holders of D-2 licenses for larger vehicles who illegally work as taxis,” per AFP. And it would be predetermined to the company where a driver works can be included in the blacklisted for up to two years for multiple offenses if occurred something wrong. AFP also added a statement on a news agency ‘Anadolu’ which reported the first five months of 2018. They observed Uber’s driver in Istanbul alone struck with $18.92 million lira (almost $4.1 million).
This situation is bearing a significant similarity to response in other countries where Uber has been accused of gaining a competitive advantage through outright violations of local laws. Through this case, it’s somewhat unclear whether Uber will truly be forced out or Erdogan is just indicating on the regulatory patch up before the elections. Turkish taxi associations are hailing that the new rules as just going to established to destroy Uber Company’s business model.
Istanbul taxi chamber head Eyup Aksu wrote on a social media platform Twitter “the first leg of Uber and pirates like them has been broken” per AFP in our country. We will create a new act with determination until this pirate transport is completely finished. We want to thank everyone who has wanted to work on this legislation.”
Uber Told Deutsche Welle That It Was Committed To Remaining Its Operation In Turkey:
We want to work in cooperation with all the relevant stakeholders to improve our transportation system and its options in Turkey. We are committed to a long-term not to stand out to operate our transportation business in Turkey.
Uber has a history of deceptive tactics like its “Greyball” program to identify and to avoid the scrutiny of law enforcement around the world. Under the leadership of CEO, ‘Dara Khosrowshahi’ has publicly insisted that it is just going to reforming our system only. For an example, the service is making a massive push to restore its permits in London, where our regulators are deemed it not “fit and proper” to continue operation in 2017 that is on pending appeals.
On the other hand, Uber has seen some major setbacks across the globe in the recent few years. This system is not going to pulling out of markets where regulators or competitors are making it so hard to stem losses ahead of its planned IPO. The ridesharing bailed on a price war by selling out its Chinese operations to local competitor Didi Chuxing in 2016. It was merged with rival Yandex in Russia in 2017, and most recently sold it out its Southeast Asian market share to Grab. So in a hurry of regulators are accused of creating an illegal monopoly there that is pretty bad. Uber is fighting also with its regulators in Bulgaria, Hungary, Denmark, and Canada that resulting to withdraw its services from the market.