Uber Technologies' roadblock in France shows that disruptive development has limits. The upstart taxi app service said it would suspend UberPOP ride-hailing in the country after a fortnight in which it was the target of aggressive protests. Two of its executives were also detained in police custody. The pair now face a trial at the end of September on charges including operating an illegal cab service.
The July 3 suspension represents a significant U-turn for the notoriously antagonistic company. Its top French executive Thibaud Simphal told French newspaper Le Monde that the company wanted to foster a conciliatory tone, improve its dialogue with authorities and demonstrate its ability to behave responsibly. It's not unprecedented: Uber suspended its equivalent UberX service in Portland, Oregon for three months. But to apply the suspension to a whole country is a far cry from the anti-establishment stance that Chief Executive Travis Kalanick has previously embodied.
Several good reasons led Uber to apply the handbrake in France. One is the scale of the violence - 70 cars were damaged and 10 people were arrested on June 25. No company can appear to tolerate threats to personal safety.
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More prosaically, France is Uber's second-largest market in Europe. Finding a way to tap the revenue stream represented by its 400,000 UberPOP customers merits a patient approach. It might, for example, build its presence through its chauffeur-driven services. These upmarket offerings will continue to operate as normal in France, even now.
The country has a symbolic importance for Uber. Kalanick founded the company after becoming frustrated at how hard it was to hire a taxi in the Parisian winter of 2008. Its experience is regrettable for all sides. The upstarts seem to have acted with insufficient tact and respect for local practices.
Opponents, meanwhile, may be threatening the growth of the business. Its recent purchase of Microsoft's maps unit may be a ploy to stay out in front. Uber is taking the right route to avoid further jams in France. But its bruising fortnight shows that agents of renewal sometimes have to work with the status quo to change it.
