Uber Cape Town Faces Business Hurdle As Police Impound 33 Cars

By Makula Dunbar Published: January 6, 2015, 4:57 pm
Thinkstock

Following the launch in Johannesburg and prior to the launch in Durban —  in October of 2013, Uber announced its official launch in Cape Town rounding out service in South Africa. Now, the tech-savvy cab service has run into a business hurdle having 33 company cars impounded, Bloomberg reported.

The Uber vehicles were reported to have been operating without a valid permit conflicting with public transportation regulations. City officials told Bloomberg that “complaints” about the Uber vehicles had already been raised.

“We remain committed to engaging with the city in resolving this issue,” Alon Lits, Uber Johannesburg general manager, said in the report via phone.

Bloomberg further reports that the permit situation was not completely overlooked by Uber, rather discussion surrounding a fitting permit has been circulating.

“We have been in discussions at a national level about introducing a new sub-category of operating license which would cater for Uber’s technology,” Lits added.

Depending on the city — even in South Africa — there are also variations of the type of permit that the company needs to operate.

Last summer at Social Media Week Johannesburg, Lits told AFKInsider about the company’s impressive and scaled growth. When Uber Johannesburg debuted, it was the 35th city, now there are more than 210 cities where locals can use the app to grab a reliable ride. It’s Uber’s goal to provide service in every city with a population of more than 200,000.

According to Bloomberg, Cape Town’s impounding incident — which commenced January 3 — is the first for Uber.

 

Sign up for the AFKInsider newsletter — the most compelling business news you need to know from Africa and the African diaspora, delivered straight to your inbox.

Tags: , , ,