Uber Technologies Inc. is currently in a predicament with European Union’s top court after saying that the car-hailing app should have the same regulation as a transport service since its drivers “aren’t professionals and they are using their own vehicles”. This is oppose to what Uber claimed that they differ from traditional taxi services.
The case revolves around UberPop, an inexpensive ride-hailing service feature in several European cities that allow drivers to use their own car without a taxi license to pick up passengers.
Despite Uber’s argument that “it’s a technology platform connecting passengers with independent drivers, not a transportation company subject to the same rules as taxi services”, top EU court have forced to cease operation of UberPop in most major European countries in favor of UberX, which requires drivers to have a license.
“The service provided by Uber connecting individuals with non-professional drivers is covered by services in the field of transport,” ruled EU Court of Justice on Wednesday in Luxembourg. It has also been stated that the EU nations “can therefore regulate the conditions for providing that service.”
The case has already been decided under C-434/15, Asociacion Profesional Elite Taxi.
Source: Bloomberg
