Uber returns to Norway amid controversy
On November 1, the new transport law will take effect, giving Uber the opportunity to return to Norway.
The adopted bill repeals, among other things, the regulation of how many taxi licenses can be issued in a county, removes the requirement that taxis must be connected to a taxi center, and sets fewer requirements for those who must have licenses.
Uber writes in the press release that the new services meet the requirements of the new law. The services will be available on Monday, November 2.
Fear of unfair competition
Hanne Skåle Thowsen, head of the Taxi Association, said they are concerned that Uber and similar concepts may operate outside the law. The union has criticized deregulation “to the end,” according to Thowsen.
“We know from the past that the way they operate indicates that they do not follow national regulations.”
Uber has previously operated with app-to-app payments between passenger and driver, but even with deregulation, there is still a requirement to install a meter.
Registration of payment by taximeter is important to avoid tax evasion. The existing taxi industry also has applications, but then the payment is recorded on the meter. Furthermore, we know how Uber has operated in terms of working conditions for its drivers.
When asked what she thinks are the dangers of deregulation, the director says there is a fear that drivers will focus more on price than quality and safety.
“In addition, we are concerned that no one controls the sector. In our neighboring countries, deregulation has occurred continuously, and they report significant tax evasion after deregulation.
As long as Uber competes on an equal footing as it has and the taxi industry does, they just have to come. We are ready for the competition, he adds.
Uber was fined in Norway with five million
When Uber entered the Norwegian market in 2014, it created quite a stir by threatening the taxi industry in Oslo. The company has consistently maintained that it is synonymous with innovation in the transportation market, while critics have accused it of social dumping.
Before Uber shut down parts of the business in 2017, several drivers had to pay fines for driving without a license. In addition, the two Uber companies, Uber Norway as and Uber BV, accumulated fines worth 2.5 million each of the companies, for violating the Commercial Transportation Law.
Uber returns to Norway amid controversy