But Uber Hong Kong is standing behind its drivers.
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This incident is yet another example of the ride-sharing giant running into trouble in its worldwide expansion efforts.
A Hong Kong government agency which endorsed Uber as one of its “success stories” has attempted to distance itself from the car-hailing app after police raids on the company’s offices in the city and arrest of five drivers in a crackdown on unlicensed transport services.
In California Uber has also courted controversy over a court case which could see it forced to treat its drivers as full employers rather than contractors, which would ramp up costs for the firm.
A handful of Uber employees were arrested and charged with illegally carrying passengers for a profit and driving without third-party insurance, according to a police statement.
It’s just the latest example of authorities focusing their attention on the controversial billion-dollar startup which lets people order cars through just the tap of a mobile app. Uber’s offices in China and Australia have been raided in recent months. He added that the ride-sharing company believes Hong Kongers want more and better transportation options in the city.
The company has previously described Hong Kong as its “regional headquarters”, while the government welcomed Uber with open arms.
In a statement Uber spokesman Harold Li said the company “ensures that all rides are covered by insurance, and all drivers on the platform undergo an extensive background check”.
Mainland Chinese authorities raided Uber’s Guangzhou office in May, accusing the company of offering illegal illicit services.
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Uber stressed that it would stand by the arrested drivers “100 percent” and would welcome the chance to discuss updated regulations “that put the safety and interests of riders and drivers first”.
