Car Industry

Uber leaves Hungary in a huff after government crackdown

It appears at least one country isn't that Hungary for ridesharing. (Sorry.)

Hemant Mishra/Mint, Hindustan Times via Getty Images

When things aren't going Uber's way, the ridesharing company has no problem picking up its toys and taking them back home. It left Austin after the city decided fingerprinting and background checks weren't too onerous for drivers (and they're not), and now, Uber's leaving Hungary for tangentially related reasons.

As of July 24, the company will officially cease its operations in Hungary, Reuters reports. The ridesharing company claims its current user base stands at 1,200 drivers and about 160,000 riders in Budapest alone. The company hopes to return eventually, but for now, it's pulling up the rug.

The reasoning behind this move is simple -- Hungary's government is rather anti-ridesharing. Thanks in part to a powerful taxi lobby, a new law was passed that allows the country to block "illegal dispatcher services" over the internet, which includes Uber. Drivers caught working for Uber or similar offerings could lose their licenses for three years.

Uber did not immediately reply to a request for comment, but Uber's Central European manager told Reuters that the company has no choice in the matter. It's not a ban, but rather a "forced suspension."

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