July 25, 2017

Why Uber’s struggling to remain a tech company

UBER Logo on black background
Image Courtesy of UBER

It is now highly likely that the European Court of Justice will later this year reject Uber’s fiction that it’s simply a marketplace that brings together drivers and riders by declaring it — gasp! — a taxi company. That may not hurt it much financially, but it will set an important precedent: Companies that have a software development operation are not entitled to special treatment.

ECJ Advocate General Maciej Szpunar has submitted an opinion to the court, saying Uber is not an intermediary matching supply with demand but "a genuine organiser and operator of urban transport services," which itself creates the supply. Szpunar’s argument is a clever spin on Uber’s (likely accurate) boast that it doesn’t just take away business from existing taxi services but expands the market. "Drivers who work on the Uber platform do not pursue an independent activity that exists independently of the platform," the advocate general wrote. "On the contrary, the activity exists solely because of the platform, without which it would have no sense."

Uber, Szpunar argued, creates and controls the supply by setting prices and rules for drivers that allow it to "manage in a way that is just as — if not more — […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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