Uber's troubles getting "serious" amid protests
Rising tensions between Uber, traditional taxi drivers and governments are getting "serious" according to Wall Street Journal business editor Dennis Berman.
"When you detain two executives, put them in jail, indict the company, basically throw the book at them, it's starting to get a little real, as you might say," Berman said Wednesday on "CBS This Morninng."
French authorities took the two Uber managers into custody Monday because of "illicit activity" involving the company's low-priced service, UberPop.
While French officials expressed their frustration that Uber isn't held to the same standards as traditional taxis, Uber claims the French system is outdated.
"This is really good, I think, in the long run for Uber. They're trying to get governments to come up with rules that they can abide by. If they had to ask permission, it would take probably years; if they ask forgiveness, it's much shorter," Berman said.
Uber's strategy, says Berman, is to outlast any short-term hurdles, like getting governments on board.
Berman said the company is probably thinking: "...'By the time that's done, we are in the markets 300 cities world wide, and we have the brand name, and we're there and we're unstoppable.'"
Violent protests broke out in France, Thursday, in a nationwide strike. Drivers, angry that Uber is taking away jobs, set fire to cars and blocked streets.
In New York, Monday, Uber employees and others gathered at City Hall to protest a proposed bill that they say would block 10,000 new jobs. New York City is one of the company's largest markets, with 26,000 drivers, and according to New York Affiliate WCBS, the bill could put a cap on the number of cars it is permitted to add.
Berman said New York City cab drivers are trying to stop the spread of Uber drivers.
"Taxi drivers in New York are saying, 'Hey, we bought a medallion to have the right to run a taxi on the New York City streets, and you've thrown that out, New York City,'" he said.