(ed: they have been draining investors’ money at a frantic pace – and now this..)
So he doesn’t need the crippling legal blow that the European Union just dealt to Uber’s global ambition to be the leading taxi-ish service for the digital age.
Uber has long claimed that it is not a taxi service or a transportation company but a technology company acting as a mere online intermediary connecting drivers to potential customers.
In fact it changed its name in 2010 from UberCab to Uber Technologies as a way to burnish that reputation.
This distinction is subtle yet important because Uber’s core business model is designed around that quasi-legal positioning – refusing to follow local taxi laws – treating its drivers as independent contractors rather than employees – not following any medallion system or other restrictions on the number of ridesharing cars on the road.
All of these have flowed from its mantra ‘We are a technology company – not a transportation or taxi company.
So we don’t have to follow taxi laws’.
For the most part U.S. regulators have bought this smokescreen claim.
But recently the European Union’s top court shot it down – wrecking Uber’s prospects in one of the world’s largest markets.
The European Court of Justice (ECJ) has ruled that Uber is in fact a transportation company – not a technology company and so it should be regulated like any other taxi operator.