It appears that the San Francisco based Uber is still facing the legislation issues. The European Union top court has restrained the ride-hailing company’s claim of being a tech-firm and not a taxi company. As per the reports of Bloomberg, the EC verdict is that the company should be delimited as a normal transport service.
The reason behind this ruling is that the company uses their own cars and their drivers fall under the section of transport service facilitators.
The worst part of the situation for the company is that this decision is final with no further opportunity to appeal.
Also Read: Uber Comes to BBM
The EU Court of Justice on Wednesday said that the service given by Uber of connecting random individuals with non-professional drivers is the service covered in the field of transportation and all the European states have the right to regulate the terms and conditions of giving this service.
Uber argued in its defence that it is not just a ride-providing service instead it has a technology platform via which passengers are connected to independent drivers.
The ruling is specifically relating the UberPop—a service that permits unlicensed drivers to pick up passengers at affordable rates—this service could have an influence on the future of Europe’s economy.
Jovana Karanovic—Founder of Reshaping Work and a PhD candidate at the Amsterdam Vrije Universiteit indicated while talking to The Next Web that, this is a set back decision for Uber not only in Europe but throughout the world and gives indication that indeed the company is a transportation firm and not a tech firm as they call themselves.
The company’s service UberX—which needs the drivers to have proper licenses would remain unaffected by this decision of EU Justice Court.
This ruling is another significant mark on the company in Europe after Uber lost its license to operate in London earlier in September this year.
The biggest sufferers would be the poor drivers as were at the time of London issue, not the car-sharing service.
Read More: Adidas Closes Its Digital Sports Division
I am a writer/editor at Research Snipers RS-NEWS and it’s been 3 years working with the company. My specialties are technology and business.