Uber Seeks Acknowledgement as a Digital Service, not a Transport Company

Jessica Kleinschmidt
by Jessica Kleinschmidt
Last updated: 12:00 PM ET, Sat December 3, 2016

In order to boost e-commerce to drive economic growth and create jobs, Uber is seeking to convince Europe's court that it is indeed a "digital service" and not a transport company.

The U.S. taxi app launched five years ago and has "faced fierce opposition from regular taxi companies and some local authorities, who fear it creates unfair competition because it is not bound by strict local licensing and safety rules," according to Venture Beat.

When it comes to support of the scenario, backers say the app "offers looser work arrangements to workers in the 28-country European Union looking for more flexibility, albeit without basic rights."

Uber maintains that it is a digital platform that connects willing drivers with customers and is not a transport service.

If the court does determine Uber is a transport service it could result in stricter rules on licensing, insurance and safety which could cause "knock-off effects" on other startups.

More than 200 participants have signed up for the hearing and 15 judges will listen to arguments.


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Jessica Kleinschmidt

Jessica Kleinschmidt

Jessica Kleinschmidt is a writer/editor from Northern Nevada where she grew up surrounded by sagebrush-covered mountains and...

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