TEL AVIV (Reuters) - Uber has been ordered to halt a trial service in Tel Aviv that the U.S. ride-hailing company had hoped would pave the way for full operations in Israel.
The Israeli court injunction against Uber is the latest in a string of international setbacks relating to sexual harassment, data privacy and business practices.
The reputational damage has been such that Uber executives are traveling the globe to reassure regulators that the company is changing the way it does business, it emerged on Monday.
The company said it would comply with the Israeli court injunction, halting the UberNIGHT and UberDAY pilot services in the Tel Aviv area, but signaled that it hopes to reach a long-term accommodation to allow it to operate in the country.
Uber said it remains committed to working with the Israeli authorities “to explore how technology can improve our cities with safe and affordable transportation alternatives”.
It was not clear, however, in what way Uber’s business model of using private drivers could work within Israeli regulations that only allow licensed taxis to carry fee-paying passengers.
Israel’s Transportation Ministry, Taxi Driver Union and a rival ride-hailing company won the injunction after complaining that the U.S. company used drivers who lacked the proper business licenses and insurance.
The Tel Aviv District Court injunction will take effect on Wednesday, according the ruling.
Writing by Dan Williams; Editing by Jeffrey Heller and David Goodman