Author Topic: What is Uber? The definition matters and Uber Works might just give it ...  (Read 33 times)


  • Hero Member
  • *****
  • Posts: 430
    • View Profile
For Uber there might be other benefits beyond simply the added value of a new service. Some pressing questions from regulators likely loom large in the mind of company executives. For example, if Uber is a ride service, that might merit different consideration than if it can successfully claim to be a staffing service instead.

In 2017, the European Union ruled that Uber is a transportation service and should be regulated as such. That was a loss for the company as it meant that they would be subject to the strict rules that govern more traditional taxis.

If the company could have instead proved that it was not a transportation service but instead simply a platform to connect people, it would have been free from those regulations as well as others that outline treatment of employees.

In the United States, the 9th Circuit Court of Appeals spiked a class action lawsuit by Uber drivers who wanted to be considered employees. In April, a judge in U.S. District Court in San Francisco ruled that limousine drivers for Uber were independent contractors and not employees.

Despite those favorable rulings, there is still plenty of room for litigation in the U.S. and abroad. Just this week, on October 16, Uber agreed to pay $1.3 million to settle a lawsuit with drivers who had opted out of the company's arbitration clause, for misclassifying drivers as independent contractors rather than employees.

For Uber, added justification that it is not a transportation service or employer but instead a general work platform could be key in future legal fights. Uber Works, in addition to adding value to the company, might be just the trick to make that argument work.