EU Court Decides Uber Is a Transportation Company, Will Face Stricter Rules

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Ever since it came onto the market, Uber has been kind of coy about its status. Reversing the story in Hans Christian Andersen's 'The Emperor's New Clothes,' the ride-hailing startup told us it wasn't a transportation company, even though we could all see it was.
This enabled Uber to function under completely different regulations compared to other providers of similar services, and we're referring here to the classic taxi drivers. By positioning itself as a mere electronic intermediary, Uber didn't have to bother with permits or a large pool of employees.

After taking the most important markets by storm and spreading out throughout the world, it has amassed quite a fortune becoming one of the most valuable companies globally. But not everyone was happy about this rapid rise to stardom, and problems quickly began to appear.

Following several more or less severe scandals and lawsuits, Uber finally had to put itself through a serious revamping process that started with Travis Kalanick, the company's founder, resigning from his position as CEO this summer and Dara Khosrowshahi taking over.

Khosrowshahi appeared to give Uber a new image, that of a company that's a lot more interested in the experience it offers to everyone (drivers, passengers, communities) than making a quick buck. However, not everybody was impressed with the change and today, the European Union high-court issued a decision that might change the way Uber functions within its countries in the future.

The EU top court ruled that Uber should fall under the same regulations as other transportation services which, for one thing, means that Uber will have to start treating its drivers more like employees.

The ruling is final and cannot be appealed, leaving Uber no chance of fighting against it. Taxi drivers in Europe have been protesting against the American ride-sharing app ever since it crossed the ocean, claiming it undercuts their business and is a form of unfair competition. Expect Uber's RoboTaxi program to pick up even more speed.
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About the author: Vlad Mitrache
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"Boy meets car, boy loves car, boy gets journalism degree and starts job writing and editing at a car magazine" - 5/5. (Vlad Mitrache if he was a movie)
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