Uber Could be Forced to Change Business Model, Court Ruling Throws Wrench in the Gears
If you haven’t been living under a rock for the past couple of years, you ...
If you haven’t been living under a rock for the past couple of years, you probably have heard of Uber. The ridesharing app has essentially taken what you know as a taxi cab and revolutionized it, making it much easier and more affordable than ever, having the liberty of picking your very own ride at your fingertips with the help of your smartphone. As the Company likes to identify themselves more as a sort of social media to connect people who can then share rides instead of a “transportation company,” they have been able to skate under the radar of some of the regulations that go alongside operating a cab service.
As Uber would probably argue, they don’t have ownership of any vehicles or even any employees but instead independent contractors ago about using their app as they please, collecting a little bit of money on the side or even making a full-time wage out of it. However, a new court ruling has declared that they are in fact a cab company and in some areas can might have to abide by the same rules as one which would mean further licensing for the drivers and more overhead for Uber who could potentially have to pay their drivers, who the law might deem to be classified as “employees” a little bit more and maybe even be forced to give them benefits.
As of now, the ruling remains in Europe and has yet to spread the United States but if we do so choose to follow along with this structure here in America, you might be seeing a change come to Uber sooner or later. The same could apply for other services such as Airbnb, the company that is basically the “Uber” of home rentals. While some think this regulation is necessary, others argue that it’s a big step in the wrong direction as it really puts a stranglehold on digital business.