Uber to Suspend One of Its Main Services in France “Uberpop needed to be banned.”

Uber to Suspend One of Its Main Services in France “Uberpop needed to be banned.”
http://www.wsj.com/articles/uber-to-suspend-one-of-its-main-services-in-...
Car-hailing service to suspend Uberpop immediately in response to violence against Uber drivers

A taxi in the area of Porte Maillot in west Paris, on June 26, bearing a banner against Uber. Taxi drivers protested what they saw as unfair competition from the car-hailing service. PHOTO: AGENCE FRANCE-PRESSE/GETTY IMAGES
By SAM SCHECHNER
Updated July 3, 2015 12:05 p.m. ET

PARIS—Uber Technologies Inc. said Friday it is suspending one of its main services in France, caving in to authorities’ demands to stop operating days after French prosecutors indicted two top Uber executives on charges of helping unlicensed taxis cheat regulations.

Uber said it would suspend the service called Uberpop immediately in France, while awaiting a constitutional court decision due in late September on the service’s legality. Uberpop uses drivers without professional licenses, rather than licensed taxis or car services, allowing it to offer lower prices.

Previously, Uber had rejected government declarations that Uberpop is illegal, and said it would continue to operate the service until a court ordered it to stop.

Thibaud Simphal, General Director of Uber France, at the company’s French headquarters in Paris.

“Today is a black day for the 500,000 regular users of Uberpop in France, as well as for the drivers that regularly use the platform,” Uber said, adding that other Uber services using professional drivers are unaffected. “It is now up to us to explain what we are doing and the advantages of the Uber platform.”

Uber attributed its about-face to an effort to protect some 10,000 Uberpop drivers and their passengers, after a series of violent protests last week by taxi drivers across France. During those protests, in which taxis demanded swifter action against Uberpop, and several Uber vehicles were attacked.

Mark MacGann, Uber’s head of public policy for Europe, Middle East and Africa, said the company also made its decision to suspend Uberpop after several days of intense discussions with the French government.

“We think everyone needs to move forward with a more cool head,” Mr. MacGann said. “What we want is a positive conclusion to the current situation.”

Uber said the suspension would take place over several hours for logistical reasons and would be complete by 8 p.m. Paris time.

“This decision demonstrates that the government’s resolve has paid off,” Prime Minister Manuel Valls said, according to his office, adding: “Uberpop needed to be banned.”

Taxis also expressed satisfaction with Uber’s retreat. Paris firm Taxis Bleus on Friday said it “salutes the work of public authorities” in “restoring public order by applying the law.”

Uber’s services that use nonprofessional drivers have been a flash point globally, leading to protests and lawsuits from taxis. In Europe, where those services are called Uberpop, courts have ordered bans on the service in several countries, including Germany and Spain.

In France, under a new transport law aimed at reining in companies like Uber, operating a system like Uberpop is punishable with a fine of as much as €300,000 ($332,000) and two years in prison.

On Tuesday, French prosecutors ordered Uber executives Pierre-Dimitri Gore-Coty and Thibaud Simphal to appear before magistrates on Sept. 30 to face charges of breaking that law, as well as charges of deceptive commercial practices, and illicit storage of personal data. Uber as a company was also charged.

Despite the retreat on Uberpop, the company isn’t abandoning its combative posture. Mr. MacGann reiterated Uber’s position that the new transport law being used to charge its executives is ill-conceived and will be thrown out. The firm has challenged multiple elements of the law before France’s constitutional court, and has also made a complaint against France to the European Union.

On Friday, Uber also launched a new social-media campaign to marshal public support. The company sent French users an email urging them to contribute testimonials to a new website named uberetmoi.com, meaning “Uber and me.” The site also encourages users to send tweets to accounts of several government officials, including French Prime Minister Manuel Valls and the head of communications for President François Hollande.

Despite facing indictment, Uber is demanding changes to French transport laws to make it easier for individuals to become licensed car-service drivers. The company argues expensive licensing requirements and a backlog for allowing new car-service drivers was what made Uberpop necessary.

“We are confident that the government is going to take its responsibilities with regard to those drivers that want to drive for a living,” Uber’s Mr. MacGann said. “The current regulatory regime is locking them out of the market.”

Write to Sam Schechner at sam.schechner@wsj.com