Online taxi platform Uber said on Wednesday it is to ensure all the drivers for its Uberpop budget service in the Netherlands have a taxi licence and that it will pick up the bill for the application process.

The aim is to ‘end the deadlock’ surrounding Uberpop, Uber Nederland director Niek van Leeuwen said in a blog post on the company’s website.

Uberpop helps private individuals to use their own cars to transport passengers but has been branded illegal by the Dutch courts because the drivers do not have a licence.

Several drivers have since been fined for operating as unlicenced taxis and the public prosecution department earlier this month said it had begun a formal investigation into Uberpop.

Van Leeuwen told news agency ANP he expects drivers will continue to work for Uber once they have a licence, rather than join an established taxi firm with higher rates.

Uber says its private drivers ‘turn over’ around over €20 an hour.

Van Leeuwen also admitted some drivers had stopped because of the legal issues, ANP said.