Published Date : Dec 21, 2017
European Union have ruled for regulating Uber Technologies Inc. as a transport company after the top court of the bloc rejected the claim of Uber being a digital service provider. This decision is expected to increase legal risks for several other gig-economy companies such as Airbnb.
While the ruling of Court of Justice of the European Union cover UberPop – which allowed drivers to drive taxis without a proper taxi license and has been already shut in several countries due to the legal problems. This has come up as a real blow for Uber as it is the first concrete finding that Uber should be regulated by the transport authorities.
This decision by EU Court of Justice clarifies for the very first time that connecting masses with the help of an app to non-professional drives constitutes to a critical part of any transport service. The court rejected Uber’s point of views that these services are solely digital and can further fuel scrutiny of other firms based on gig-economy. Paris regulatory authorities have already started clamping down on Airbnb. They are treating this home rental services more like a hotel. Deliveroo – the British food delivery – has been under much of a spotlight because of their treatment of workers.
In the view of the EU judge, ‘the most critical part of the business of Uber is the provision of transport.’ Connecting passengers with drives via smartphones was considered secondary according to Rachel Farr who works at Taylor Wessing as senior employment lawyer.