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Uber halts Tel Aviv trial on orders of Israeli court

The company is struggling to establish itself in Israel.

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Uber will cease operating in Tel Aviv on Wednesday.

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A new week brings another bout of bad news for Uber. A court in Israel ordered the ride-hailing service to halt a trial program in Tel Aviv on Monday.

The court issued an injunction against the company following complaints made by Israel's Transportation Ministry, Taxi Driver Union and a rival ride-hailing company about Uber's use of drivers who lacked proper licenses and insurance, Reuters reported. Uber will cease operating in the city on Wednesday.

The halt in the trial is yet another example of Uber falling foul of regulations as it expands into new markets around the world. The decision also comes only a week after the company was found to have covered up a major hack in which details belonging to 57 million customers were compromised.

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Uber argued that it should be subject to different regulations than other services because payments made by passengers were designed to cover the maintenance of vehicles rather than to profit drivers.

In spite of these protestations, lawyers for the company agreed to comply with the court ruling. The company did not immediately respond to request for comment.

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