Users of the global transportation technology Uber in the European Union will have to reconsider how they do business, as the EU recently imposed certain regulations on the company’s business model. Before, Uber Technologies Inc. managed to have itself considered as a digital service provider for users, but new rules decided by the EU court determine it to be a transport company, much like taxis and other public transit options.
“The most important part of Uber’s business is the supply of transport — connecting passengers to drivers by their smartphones is secondary,” said Rachel Farr, senior employment lawyer at Taylor Wessing. “Without transport services, the business wouldn’t exist.”
This will disrupt business operations for Uber in the EU, as plentiful people use Uber as a middle man for setting up safe and secure transactions between drivers and customers.