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Uber is a traditional transport service

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Uber should be considered a company that is "providing transportation services", an adviser to the EU Court of Justice said on Thursday, May 11. It's a body blow to Uber, which insists it's only "a digital enabler," and so should be exempt from some regulations and taxes. It's the latest setback for Travis Kalanick's lucrative set-up.

Axar.az reports citing to Sputnik you may not have heard of Advocate General Maciej Szpunar, but his recommendation to the EU Court of Justice could impact how you get around cities all across Europe.

"The Uber electronic platform, whilst innovative, falls within the field of transport: Uber can thus be required to obtain the necessary licenses and authorizations under national law," Szpunar's statement said on Thursday.

The recommendation is not yet binding, but judges at the court tend to follow such advice.

The consequences for Uber could be dramatic. Such a ruling would expose the company to being subject to a whole raft of European-wide licensing regulations and tax obligations.

Indeed, governments across the world have been slow to adapt to Uber's unconventional business model. It is increasingly attractive to consumers, as demonstrated by it's but its popularity in cities across the world.
Uber says it has around 120,00 drivers in the EU, used by 7.5 million people.

However, Uber remains remarkably unregulated, unlike traditional companies offering similar services, such as taxis. This has resulted in a toxic mix of reduced tax revenue, fewer employee protections and angry protests from the competition.

The case was initially brought by an association of Barcelona taxi drivers who argued that Uber was engaging in unfair competition, though being able to used unlicensed drivers, while they were not.

Date
2017.05.11 / 22:29
Author
Axar.az
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