Research and Markets - Uber Shuts Down Ride-Sharing Service in Sweden

May 11, 2016, 08:38 ET from Research and Markets

DUBLIN, May 11, 2016 /PRNewswire/ --

Uber Technologies Inc. is expected to close its UberPop ride-sharing service in Sweden on May 18 due to problems with local taxi regulation. UberPop was originally made available in Sweden in September 2014, but recently ran into trouble when a local driver was sentenced and fined for illegal taxi trade and breaching related local laws by Sweden's Svea Court of Appeal. Uber has dominated the car rental market ever since the company first appeared on the scene, but the tide could be turning. The global car rental market is forecast to grow at a CAGR of 15.32% by 2019, according to a report available from Research and Markets, but this growth could be lower than expected if rental companies like Uber are restricted from offering their full range of services in certain markets.   

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Although its UberPop service will be shut down, the company will continue to offer other services such as UberX and UberLux. Uber was forced to end the same service in France in 2015 after violent protests by local taxi drivers resulted in the detention of two senior managers from Uber by French police.

Car-sharing memberships are predicted to grow from 4.8 million in 2014 to 26 million by 2020, as forecast in an industry report, but this estimate could be lower than expected as numerous governments and taxi regulators around the world are challenging the legality of services like Uber.

Uber's revenue is forecast to exceed USD 40 billion by 2025, according to a market report, but the constant legal challenges, violent protests and widespread industry criticism could have a negative effect on this forecast leaving Uber with far less revenue than expected.

For further information on this topic, and a full list of all related documentation, please visit the Automotive Leasing and Rental section at http://www.researchandmarkets.com/rm/OLKK.

Source: http://www.bloomberg.com/news/articles/2016-05-11/uber-ends-ride-sharing-service-in-sweden-amid-regulatory-concern

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