Uber said "For us to operate in Denmark again, the proposed regulations need to change".
Uber announced in a press conference they will close in Denmark on April 18.
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Its solution-to pull its app that is used by at least 2,000 Danish drivers serving over 300,000 riders.
"It is probably illegal in its current form", said Birk Olesen, adding, "I believe that we must be open to new technologies and innovative business models". The pitch made by minority liberal government to accommodate new operators, like Uber, along with ambitions to deregulate the taxi business even went to vain, post the introduction of their new laws back in February.
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Uber rarely abandons entire countries, though it has ceased operations in certain cities in the past.
According to the new draft law all transportation of persons for remuneration, which goes beyond the direct costs of driving, is to be considered a commercial activity.
Uber seems unwilling to adhere to the new requirements.
Uber said it would retain a corporate presence in the Scandinavian country, where its engineers will continue to work on developing technology for the ride-sharing service worldwide. It'll also maintain its software division in Aarhus which now employs 40 people in northern Denmark.
Conservative member of parliament Rasmus Jarlov, described by The Local as "one of Uber's biggest supporters in parliament" blamed opposition parties that he said "forced" the government "to make a law that has forced Uber out of Denmark". The case will come up in court by April-end. Those changes, scheduled to take effect next year, cap new taxi driver licenses at 125 per quarter.