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European court recognized Uber as a taxi service
European legal of Justice ruled that Uber is regulated as a taxi business. This means that the service is obligated to obey the rigid rules that traditional taxi services operate by. Uber has very long reported is technology platform through which independent drivers research individuals. According to the decree, the organization should start treating its drivers as full-fledged employees. The decision isn’t susceptible to allure.
“The Uber service, allowing individuals to interact with non-professional motorists, is something in the field of transport,” the court ruled. Hence, the 28 EU member states “can control the circumstances when it comes to provision of the service”.
Uber was previously forced to abandon UberPop service in lot of major europe. Instead, she needed to change to the UberX service, which employs professional drivers. “This decree will not change the situation in most EU countries, where we already work with accordance with transportation legislation,” said an organization spokesman.
The situation culminates in a lot more than 5 years of disputes between Uber and different taxi organizations across European countries. The latter were unhappy that Uber had been damaging their particular company and demanded that the business function based on the same rules while they performed.
The ruling could set an essential precedent that may impact companies like Foodora and Deliveroo. Inside them, people are either freelancers or work on short term contracts. Earlier, the European Commission said it wants to produce a regulatory framework when it comes to sharing economy. Society Bank notes that temporary workers when you look at the EU earn an average of 14% less than those who work on an open-ended contract.