HEALTHPLAN MAGAZINE

Uber, the 'ride sharing' mobile app that works by pairing drivers and their cars with passengers who need a ride has announced that it is temporarily suspending its service in Spain, following the injunction issued by a Spanish court. Uber, the San Francisco based company, has only been operating in Spain since April 2014, but now says that that it is "respecting the law" and has put its operation on hold.

Uber is an ambitious project that has seen rapid growth around the world. It started running its services in 60 cities in 2009, and quickly extended into 260 cities in 50 countries including Spain. It describes its service as offering "safe, convenient and affordable urban rides" to passengers, allowing drivers to share their vehicles, saving monthly costs and "helping to reduce drunk driving". The company has been valued at $40bn (£25.5bn).

In spite of this phenomenal growth, Uber has run into problems in many countries including the US, the UK, Germany, France, India, China and Thailand. The problem is usually to do with regulation. In Spain for example, following complaints from numerous taxi associations, Uber was ordered by a judge to halt operations throughout the country on the grounds that it had no 'official authorization to operate' and was also in unfair competition with licensed and regulated taxi firms. The judge forbade any Spanish telecommunications company or bank to support Uber in any way. Elsewhere, regulators in other countries have demanded stricter rules on insurance, car inspections and driver background checks.

There's obviously a great deal of concern about passenger safety. In Delhi, India, the company have been blacklisted following a complaint that a male driver raped a female passenger. Meanwhile in France, French regulators have issued a decree promising a crackdown on Uber drivers without professional licenses.

Uber CEO Travis Kalanick insists that Uber is completely legal however, telling the Wall Street Journal, "We don't have to beg for forgiveness because we are legal ... There's been so much corruption and so much cronyism in the taxi industry and so much regulatory capture that if you ask for permission up front for something that's already legal, you'll never get it."

In true flamboyant style, Uber intends to appeal against the decision in Spain. According to the Uber website, "the Association Madrileña Del Taxi requested a court injunction against Uber. Today," Uber says, "we have received the formal ruling and, in compliance with the December 9th order from the commercial judge and in respect of the law, we are temporarily suspending uberPOP in Spain while we appeal the court ruling and look to develop new options to give Spaniards access to safe, reliable rides."

Uber notes on their website that their intention in Spain is to now collaborate with Spanish politicians in order to "develop the modern framework needed to create a permanent home for Uber and the sharing economy". They feel that there is a great deal of sympathy for their cause from Spanish leaders who are fans of "the innovation economy".

Uber have indicated that, "The Spanish Competition Authority (CNMC) has clearly stated that current transport restrictions are anti-competitive and restrict the entry of new players into the market – to the detriment of the consumer. The CNMC has also stressed the need to regulate the sharing economy in favour of consumers, as has the Catalan Parliament with a recent vote to establish guidelines on "collaborative consumption". We will also collaborate with the national government's working group to develop modern regulations for new technology-enabled services."

It appears then that Uber remains largely undaunted and is striding confidently forward into 2015. The company will pursue an expansion programme around the globe. In December 2014, the company broadcast that it had won new funding to the tune of $1.2 billion and was aiming on expanding its holdings in the Asia Pacific region.