Picture: Tony Öhberg for Finland Today
Uber stops its service in Finland. For the time being. “Today we are letting people know that we will soon be pressing the pause button on UberPOP in the Finnish capital Helsinki, before we relaunch next summer,” the tech company based in US, which began operating in Finland in 2014, said in its blog.
UberPOP is a service where car owners can register as drivers, and the passenger can request a ride. The Android, iOS and Windows Phone app connects riders with drivers using their phone’s GPS capabilities, sharing the location of both parties, thus removing the question of when the ride will arrive.
The tech company processes all payments through charging the passenger’s credit card, taking a cut of five to 20 percent, and depositing the rest of the money to the driver’s bank account.
Since its launch in 2012, Uber has in many countries become a recognizable alternative to traditional taxi cabs. Uber drivers do not possess special licenses; they use their personal vehicles to offer discounted fare rides. In addition, Uber drivers cannot pick up street hails.
In April, the Finnish Parliament passed a new law which will open up the transportation market for new businesses. The Act on Transport Services will come into force in July, 2018. “While we are looking forward to the reforms coming into effect, we have decided it is best to pause UberPOP from August 15th until the new regulations allow a better environment. We want to ensure that we do not pose drivers who use our app or our employees any unnecessary issues – especially now that we have a bright future to look forward to,” the company said.
The licensed UberBLACK will, however, continue operating in Helsinki, where limousine professionals, driving luxury vehicles like a Mercedes E or S-Class will take the passenger to its destination with approximately doubled cost compared to UberPOP service.
