05/06/17

Towards the end of uberisation of passenger transport?

Uber's model is highly controversial: some hail competition from the services of taxi companies, others consider that the services offered by Uber constitute unfair competition for taxis and a circumvention of the law applicable in social matters.

There is no doubt that Uber has so far managed to escape from the rules which constitute obstacles to the freedom to provide services in the field of passenger transport. It should be noted that taxi drivers are obliged to respect a range of legal or regulatory provisions, whereas Uber providers do not follow the same rules.

However, it should be noted that the Uber model may soon come to an end, since in its Opinion of 11 May 2017 in Case C-434/15 Asociación Profesional Elite Taxi v Uber Systems Spain SL, Advocate General Szpunar has adopted a position contrary to Uber's interests.

According to these conclusions, the service offered by Uber does not constitute an information society service, but an on-demand urban transport service which is managed and exercised by or on behalf of Uber. In fact, “drivers on the Uber platform offer passengers a transport service to a destination selected by the passenger and, accordingly, are paid an amount which far exceeds the mere reimbursement of expenses incurred”. This implies that it is a conventional transport service.
Furthermore, the Advocate General noted that “Uber does much more than link supply to demand”, since Uber itself created the offer. The Advocate General further states that Uber also regulates the essential characteristics of this offer and organizes its operation.

It must therefore be noted that Uber is the equivalent of a taxi reservation central and that his service should be subject to the same rules as the classic taxi service.
If the Court of Justice of the European Union follows the Advocate General's conclusions, the Uber model could be subject to the same rules as taxis, which means that Uber drivers should have licenses and respect all the social rules. This could be the end of the uberisation of passenger transport.

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