Uber (private) hit a major snag today, as the European Union’s highest court ruled that the private company is indeed a transportation business, instead of a technology platform. The company had positioned itself as a digital marketplace that connects riders and drivers, which usually faced a lighter regulatory burden. The ruling now forces Uber to comply with the bloc’s rules for taxis, which the company will now face much stricter requirements and licensing.
This ruling only applies to Uber in Europe but policymakers worldwide have been struggling on how to apply rules and regulations to this growing freelance workforce. Legislation has not been able to keep up with the changing work arrangements, that are used now to cut costs. For decades said regulations have been formed around the traditional 9-to-5 jobs.
There have been many complaints around the world from the taxi companies on their new competition. The case in Europe was brought about by a taxi group, based out of Barcelona, Spain. This particular group felt that it was unfair that these drivers didn’t have the same rules that they did. The ruling now applies to all 28 countries that are within the European Union. The taxi group that defeated uber, Elite Taxi, took to twitter stating, “today, taxis drivers have beaten Goliath.”
Uber’s CEO, Dara Khosrowshahi, recently announced that he wants to take his company public, as early as 2019. He currently faces a lot of backlash from his predecessor, Travis Kalanick, who lead a corporate culture of internal struggles, and sexual harassment in the workplace.
Uber has put out a statement stating that they had been operating under most of the European countries transportation laws, and the new ruling has little impact on their company. It added that it would dialogue with its cities across Europe for its services.
Featured Image: twitter
