Uber was dealt another blow in Europe on Wednesday, when the European Union’s highest court decided the ride-hailing organization is a transportation service and ought to be regulated as such.
Uber, established in the United States and headquartered in San Francisco, had contended that it was essentially a middle person technology business that ought not be liable to transportation control, which could involve extra permits for the organization and prerequisites for drivers, and tops on the quantity of vehicles it puts out the road.
“The service provided by Uber connecting individuals with non-professional drivers is covered by services in the field of transport,” the European Court of Justice (ECJ) said. “Member states can, therefore, regulate the conditions for providing that service.”
Uber, which enables travelers to summon a ride through an application on their cell phones, has changed the taxi business since its launch in 2011. It now works in more than 600 urban communities all around. Uber contended it was essentially a computerized application that went about as a middle person among drivers and clients searching for a ride thus should fall under lighter EU rules for online administrations.
“This ruling will not change things in most EU countries where we already operate under transportation law,” an Uber spokeswoman said in a statement. “As our new CEO [Dara Khosrowshahi] has said, it is appropriate to regulate services such as Uber, and so we will continue the dialogue with cities across Europe.”
The decision applies just to the European Union. However, it is probably going to be examined by regulators looking extensively at the gig economy. Policymakers worldwide have been struggling to outline rules for this developing piece of the work force, where individuals work as consultants or on contracts rather than holding lasting occupations.
The decision comes at a vital time for Uber. The organization’s new CEO, Dara Khosrowshahi, has said he needs to take the organization public as soon as 2019. Be that as it may, he has to redo a corporate culture set apart by inside strife, allegations of lewd behavior in the work environment and the reckless style of his antecedent, Travis Kalanick.