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EU The Courts Transportation

Europe's Top Court To Decide If Uber Is Tech Firm Or Taxi Company 193

An anonymous reader writes: A Spanish judge has requested that the European Court of Justice determine whether or not Uber is a generic "digital service," as it claims, or a "mere transport activity." If the court rules that Uber is a transportation firm the company may have to follow the same licensing and safety rules as taxis and other hired vehicles. "Today's news means that the European Court of Justice will now determine if the national rules currently being applied to digital services like Uber are legal and appropriate under European law," said Mark MacGann, Uber's Head of Public Policy for EMEA, on a conference call with journalists.
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Europe's Top Court To Decide If Uber Is Tech Firm Or Taxi Company

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  • Taxi company (Score:5, Insightful)

    by mwvdlee ( 775178 ) on Tuesday July 21, 2015 @06:43AM (#50151267) Homepage

    It's a taxi company

    I can order a taxi online already. Why would a particular implementation of ordering transport online suddenly make it something completely different?

    If you take away the cars, Uber no longer has anything to sell. If you take away the online app, they could switch to some other channel and continue.

    • Re:Taxi company (Score:5, Insightful)

      by gstoddart ( 321705 ) on Tuesday July 21, 2015 @06:55AM (#50151311) Homepage

      Why would a particular implementation of ordering transport online suddenly make it something completely different?

      As far as I can tell, because Uber wants it to be.

      Which, also as far as I can tell, is a complete lie as the company seems to think they stepped in unicorn poop and can now make up their own definitions and decide what laws apply to them.

    • If it's not too late already, Über should diversify. Über's ambiguity lies into the fact that they implemented a totally new digital way to rent something, e.g. a car/taxi. The problem is that it applies only to "rent a car with chauffeur for a short trip", ie like a taxi. They should try to apply their technology to something different to prove they're not (only) a taxi company, and that may be difficult.
      • Über's ambiguity lies into the fact that they implemented a totally new digital way to rent something, e.g. a car/taxi.

        You could order a taxi online before Uber.

        • You could order a taxi online before Uber.

          Didn't know that . I live in the Amazon jungle.

        • by dave420 ( 699308 )

          I'm absolutely no fan of Uber, but let's not play this game. They did bring something considerably different to the market - the ability to track reviews of specific users, and with it the ability to jettison anyone who didn't behave in accordance with their desires. It also encompasses many different geographical regions under one umbrella, as opposed to the frequently-disparate online offerings before.

          There is enough rope to hang Uber without having to make stuff up ;)

    • Re: (Score:3, Interesting)

      by drinkypoo ( 153816 )

      I can order a taxi online already. Why would a particular implementation of ordering transport online suddenly make it something completely different?

      Because it's not a Taxi, and that makes it different. A taxi is a generic hire car which is not also a personal vehicle. These are personal vehicles which are also available for hire. It's directly analogous to a torrent site, except Uber gets a cut. Torrent sites don't try to monetize because that is clearly illegal. It is not clearly illegal to hook riders up with drivers, so there's no reason not to profit.

      If you take away the cars, Uber no longer has anything to sell.

      The cars don't belong to Uber, so you can't take them away from Uber. This is you insisting that pe

      • Re:Taxi company (Score:5, Informative)

        by gstoddart ( 321705 ) on Tuesday July 21, 2015 @08:02AM (#50151665) Homepage

        If we're using ownership of cars as the threshold, then I'm afraid to tell you in many places the cab driver owns his own car.

        So, I'm sorry to tell you, but once again the ways people defend Uber as being inherently different from a cab company are completely bullshit.

        A cab is a commercial vehicle for hire. Uber is just a bootleg cab company playing a shell game with the definitions for their own purposes.

        Your definition of a taxi not also being a personal vehicle is not real. It may apply in some places, but it most certainly is NOT the actual definition.

        I'm betting there's lots of places where the cabs are owned by the drivers. And they sill fall under the regulations around taxis, commercial cars for hire, and the license and insurance required to do that.

        Sorry, Uber is a cab company, no matter what they say.

        • Sorry, Uber is a cab company, no matter what they say.

          I'm not a fan of Uber but I'm not certain this is true, in my understanding a typical cab will drive around looking for random people to wave it down and potentially wait at certain high pickup locations.

          An Uber (or Lyft) vehicle will only respond to a request from the webapp, it strikes me as more analogous to a Limo service or other hired vehicle. Are those considered taxis? (not rhetorical, I'm actually curious. For tax purposes it appears they are [cra-arc.gc.ca]).

          • Re:Taxi company (Score:4, Informative)

            by Veranix ( 666820 ) on Tuesday July 21, 2015 @12:21PM (#50153743)

            Sorry, Uber is a cab company, no matter what they say.

            I'm not a fan of Uber but I'm not certain this is true, in my understanding a typical cab will drive around looking for random people to wave it down and potentially wait at certain high pickup locations.

            An Uber (or Lyft) vehicle will only respond to a request from the webapp, it strikes me as more analogous to a Limo service or other hired vehicle. Are those considered taxis? (not rhetorical, I'm actually curious. For tax purposes it appears they are [cra-arc.gc.ca]).

            I live in a city in the Midwest, and have traveled for work to many other cities in the Midwest. Nigh universally, there is no such thing as a taxi that drives around looking for fares. You call a taxi company, or use their website, to request a taxi be dispatched to your location.

            Rarely, in some cities, there are designated areas called "taxi stands" located in or near neighborhoods with a high density of bars. Taxis can sometimes be found idling there, waiting for inebriated folks to stumble their way. This is far from a ubiquitous practice, and even where the taxi stands exist, generally only contain taxis on Friday and Saturday nights.

            Perhaps taxis continually circle or wait around high-traffic locations in very large cities. However, even on my trips to Chicago, I've seen only the dispatch request model.

      • by Ramze ( 640788 )

        Not sure where you got the definition that taxis are not also personal vehicles. Where I live in South Carolina, there is a limited number of taxi licenses by law -- and those licenses are owned by only a few families. The vehicles are most certainly owned by the drivers and are random makes and models with a simple TAXI light on the top. They also use those cars as their personal vehicles around town. I know because I've ridden in many of them and I've spoken with the drivers.

      • LMOL - you know it's not the car that makes it a taxi. It's the service you provide. Personal car or company car - makes no difference.
      • Re:Taxi company (Score:4, Insightful)

        by GlennC ( 96879 ) on Tuesday July 21, 2015 @09:01AM (#50152129)

        It is not clearly illegal to hook riders up with drivers...

        If the driver was not intending to go to the rider's destination until the passenger stated the destination, then the driver is soliciting for passengers.

        If the driver is soliciting for passengers and does not possess the required commercial licenses and insurance, then it is clearly illegal.

        I know you and your buddies are all "Libertarian/Anarcho-Capitalist" and such, but the fact that Uber is encouraging people to engage in illegal commerce doesn't go away just because you want it to.

    • I can order a taxi online already

      Yet Uber and Lyft are much more popular, so you've proved their point. But why? Because they're tech companies and people like their tech (reputation systems, scheduling systems, payment systems, etc.) If you got rid of their tech, they'd be nothing. If you got rid of their cabs ... wait! They don't have any cabs!

      They specifically enable private drivers to _not_ need a taxi company. "So they're a taxi company?" Yeah, like eBay is a department store.

      • by bws111 ( 1216812 )

        Yet Uber and Lyft are much more popular, so you've proved their point.

        Where did you get THAT bizarre idea? Uber claims 140 million rides/year WORLDWIDE. NYC taxis do 236 million rides/year just in NYC.

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        Yet Uber and Lyft are much more popular, so you've proved their point.

        What point? Uber and Lyft being popular just means that people like what they're selling. It doesn't change what they're selling is practically a taxi service.

        But why? Because they're tech companies and people like their tech (reputation systems, scheduling systems, payment systems, etc.)

        Tech that functions as a taxi service. A rose by any other name would smell as sweet.

        When people pay Uber money, they're not paying for "tech". They're paying for a ride. The "tech" just facilitates that ride. Without a ride at the end, all the tech is useless. Uber's "tech" is akin to taxi company's call center. You call in and ask for a ride, and th

    • It's a taxi company

      I can order a taxi online already. Why would a particular implementation of ordering transport online suddenly make it something completely different?

      If you take away the cars, Uber no longer has anything to sell. If you take away the online app, they could switch to some other channel and continue.

      Uber is just a clearing house for dispatching and processing payments for taxi rides. They are neither a tech company, nor a taxi service.

      However, this is NOT to say Uber drivers shouldn't be required to follow the existing laws for Taxi services. Uber drivers should be required to meet all the same legal requirements as the local taxi services, commercial licenses, commercial insurance, etc Where Uber is not bound by these rules, they should make it clear that their drivers ARE bound by the laws in their

  • Re: (Score:2, Interesting)

    Comment removed based on user account deletion
    • by tomhath ( 637240 ) on Tuesday July 21, 2015 @06:54AM (#50151307)
      Sorry to hear of your relative's problem. But really, the next time she needs surgery she should go to what? A butcher shop? A hairdresser? You really think someone without a license is a better choice?
      • Is that what you would do in the absence of a licensing regime, go to a hairdresser for surgery?
        • Re: (Score:3, Insightful)

          by Anonymous Coward

          In absence of a licensing regime, a hairdresser could pretend to be a surgeon and you wouldn't know.

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      That is the problem. Licensing should just be compliance, not barrier of entry.

      • That is the problem. Licensing should just be compliance, not barrier of entry.

        And updated to eliminate unsafe methods to keep the licensed operating safely.

    • Licenses (regulations) alone aren't enough. Neither is competition. You really need both, and in the right amount, because both too much and too little are bad (admittedly, 'too much competition' is a difficult problem to reach).

      We see this in the ISP field, just to name one. Even with net neutrality enshrined as a rule, we still have large swathes of the country with second or third rate service, even in major metropolitan areas with dense population. You can see the difference when Google comes to a ci
    • Turned out that the man hadn't bothered to do much to update his knowledge of his specialty in about 15-20 years.

      And in some countries this *IS* considered a problem.
      Medical Doctors are required to attend conferences, etc. just to keep up to date.

  • by siddesu ( 698447 ) on Tuesday July 21, 2015 @06:48AM (#50151289)
    Who runs the meter and collects the money?
  • by fluffernutter ( 1411889 ) on Tuesday July 21, 2015 @06:50AM (#50151295)
    If Uber doesn't want to be a Taxi company, then they should really stop focusing so much on carrying people around in cars.
    • Not quite, if Uber doesn't want to be a taxi company it shouldn't be placing so many (or any) restrictions and rules on the "independent" drivers who work for it.

      That's where the problem lies, if Uber wants to be a digital distributor of taxi companies, that's all it should be doing.

      • Even Uber knows that it wouldn't work. How long would they last if every 2nd or every 3rd vehicle you called was a rusted heap with smoke billowing out the hood and the exhaust pipe?
        • Which makes them a taxi company. Checkmate.
        • by dave420 ( 699308 )
          What's wrong with where you live? Over here in Germany the vast majority of taxis are well-maintained, clean Mercedes. They nearly all have full leather interior, electric everything, and run like a charm. Even the non-Mercedes taxis are clean and run well. Maybe fix your messed-up taxis and Uber wouldn't be necessary :)
        • How long would they last if every 2nd or every 3rd vehicle you called was a rusted heap with smoke billowing out the hood and the exhaust pipe?

          You're taking a jab at the taxi industry in some locations, and that tickles me some.

          But... isn't prevening that exactly the sort of thing - via user reviews and such - that is part of Uber's appeal?

          Every rusted heap with smoke billowing out the hood would quickly garner negative reviews (for that particular car, for the company that sent it, maybe both), and people

          • Oh yes and we all know reviews can be trusted. Recently in another article a slashdot user mentioned that the driver of the car that came for him wasn't even matching the picture in the Uber profile.
  • This is one of few instances when courts would be wise to do nothing and refuse to rule on the question.

    The question is meaningless the same way it is meaningless for the court to rule whether the boiled egg needs to be cracked at the sharp end or the rounder end.

    I would also like to remind the famous French Candle makers' petition asking the lawmakers to intervene:

    "We (French candle-makers) are suffering from the ruinous competition of a foreign rival who apparently works under conditions so far superior t

    • by Primate Pete ( 2773471 ) on Tuesday July 21, 2015 @07:04AM (#50151355)
      This is a false analogy for two reasons:

      First, in the candlemakers' appeal, the requst is to kill the competition. In the Uber case, the question is which body of law to apply. These are not parallel questions.

      Second, Bastiat's appeal is fictional and based on satire and oversimplification to make a point; the Spanish judge's request is based in actual events and law, which are much more complicated.
    • by Ramze ( 640788 )

      I don't think the distinction is meaningless.

      If I use a phone to call, text, or use an app in order to have someone provide me with personal transportation to another location for a fee, I'm calling a taxi. I have expectations of being picked up in a reasonable amount of time and to get to my destination in a reasonable amount of time for a reasonable fee.

      Uber drivers ARE Taxi drivers. They aren't casual drivers picking up hitchhikers and asking for voluntary, optional donations.

      The only questio

  • by louic ( 1841824 ) on Tuesday July 21, 2015 @07:02AM (#50151341)
    What a bullshit. They should instead adapting the law to the changing times. This is like deciding whether a computer is an abacus or a typewriter.
    • by dywolf ( 2673597 ) on Tuesday July 21, 2015 @07:36AM (#50151503)

      A taxi company screaming "I am not a taxi company" is not a reason to change the laws.

    • Maybe they should. But until they do, Uber is required to follow the existing laws, and the type of business they are determines which laws apply.
    • There is a process in place to adapt the law. Everyone else uses this process. It's not the fault of the government or the people that Uber doesn't have enough patience and fortitude for the process.
    • What a bullshit. They should instead adapting the law to the changing times. This is like deciding whether a computer is an abacus or a typewriter.

      Courts do not adapt or change or add or delete laws. They rule based on existing law, they can interpret where things are not clear, but that is all they should and can do. So, in this case, court is doing exactly what they should do, and that is rule on the applicability of taxi laws to Uber.

      Lawmakers will change the laws when there is enough motivation to do so, be it public demand, pressing social issue, etc. Sometimes lawmakers wait for court rulings such as this one to help determine what needs to b

  • This should depend greatly on the factual record.

    Surely it should be possible that a company arranges for people to get rides from private persons. Any other ruling from the Court would be dreadful. Whether Uber is really just helping people to find a driver (or a rider), or whether it is really holding itself out as a taxi service is another matter. Similarly, it is possible that Uber could use truly independent contractors; whether Uber's current arrangements with its drivers qualifies as an employment re

    • by pr0nbot ( 313417 )

      If the court decides Uber isn't a taxi company, then I hope it decides the drivers are, and are subject to the same licensing requirements as other taxi companies.

    • Surely it should be possible that a company arranges for people to get rides from private persons. Any other ruling from the Court would be dreadful.

      Nobody says a company cannot arrange for people to get rides from private persons. For example, that has been done for more than 20 years in Germany. If you want to travel from Bremen to Munich, you find a Mitfahrzentrale which will find a person who wants to drive that way anyway and takes you with them.

      Uber however arranges from people to get rides from legally professional drivers, who drive their car specifically from the place where you want to leave to the place where you want to go, for hard cash.

    • That depends on the extent to which cities and road systems (something created and designed by people, except in the case of Boston which was designed by cows) serve a social function as an indispensable part of that society.

      If democratic society functions completely the same no matter what transportation does, then sure. Transportation can do what it likes as it doesn't matter.

      If systems like cities absolutely require a transportation infrastructure, then society itself has a vested interest in dictating h

  • Really, not much more can be said. A 'ridesharing' service could still exist without their software, but their software couldn't exist without a ridesharing service.

    • by dave420 ( 699308 )
      First they'd need to become a ride-sharing service. Currently they are rather far from that, right in the "taxi company" territory.
  • by tlambert ( 566799 ) on Tuesday July 21, 2015 @07:46AM (#50151559)

    Spain has a history of doing stupid things involving the Internet.

    Their "unintended consequence" to forcing search services to not list headlines from news services unless payment for the content happened, was that they got delisted from news.google.com and other Google search results.

    "We wanted you to pay us, not delist us!" was a stupid response to the delisting.

    The unintended consequence in this case, should the court agree to hear it, is that there will be a single law on the books regulating taxi companies in all EU countries as a result.

    This "cure" will likely be worse than the "disease", in terms of overall fallout.

    • by Holi ( 250190 ) on Tuesday July 21, 2015 @08:06AM (#50151687)
      Why do you think the laws would change? Wouldn't the easiest outcome be for everyone involved be to have Uber follow the applicable laws?
      • by phayes ( 202222 )

        I don't know about Spain but in France, the Taxis want nothing less than for Uber to be outlawed plain & simple.

        Their reasoning is that:
        - In France, everyone MUST buy a Medallion to be a legal Taxi & to pick people up off the street.
        - The number of Medallions is limited, the Medallions are thus very expensive (North of 200K€ a few years ago). It wasn't this way a few decades ago but local governments were pressured into not expanding the number of medallions for diverse reasons, among them olde

        • >"Kill them all, God will sort out the inocents" was uttered by a French general

          Is it supposed to have been said by the papal legate Arnaud Amalric during the Albigensian Crusade in 1209. Calling him a French general is quite a stretch and any link to the current french population is doubtful at best.

  • Having grown up near O'Hare airport, taxi's to me are cars, with the word TAXI on it, that drive around waiting to be flagged down or that wait in a queue for the next passenger at the airport. Do Uber drivers scope out the neighborhood looking for a fare, or do they exclusively wait for an online beckoning? To me Uber seems to be a bunch of junior limo's without the booze or livery license plates.
    • by Ramze ( 640788 )

      You make a fair point. However, if the only difference is whether a TAXI diver is actively scouting for service or waiting for a service to assign a job, then it's a really grey area. After all, Uber does its best to advertise itself. Wouldn't an Uber driver parked at an airport waiting for the App to signal the fare be the same as a TAXI driver waiting for a pedestrian to signal for a fare? Why would TAXIs need to advertise their service if the app can advertise for them? - especially if UBER buys a

    • Having grown up near O'Hare airport, taxi's to me are cars, with the word TAXI on it, that drive around waiting to be flagged down or that wait in a queue for the next passenger at the airport.

      If they invent a way for me to "call" a taxi using an electronic device with a dial, that's connected by wires to a network using an area code and seven numbers, does that mean it's not a taxi company?

      To me Uber seems to be a bunch of junior limo's without the booze or livery license plates.

      You can get booze in an Ub

    • by Xrikcus ( 207545 )

      Try the same thing at Heathrow airport. You can take a metered taxi from the airport, but you can also request a private hire vehicle from the airport or (as I just did) book a car in advance to meet you in arrivals. In the US you might call that a limo service, but that usually implies a certain higher standard of car. In London we'd still call them taxis or cabs. We're talking about services that are significantly cheaper than private hire and cheaper than Uber as well based on the numbers I looked at.

      Ube

  • by Anonymous Coward on Tuesday July 21, 2015 @08:03AM (#50151677)

    Uber could not be a pimp, they just facilitate the matching up of hookers and johns, process the payments and take a cut.

    Uber could not be a slave trader, they just facilitate the matching up of slaves and slave owners, process the payments and take a cut.

    Uber could not be a murder for hire company, they just facilitate the matching up of assassins and people who need someone dead...

    Don't worry, it's just digital services, nothing illegal going on at all!

  • by Virtucon ( 127420 ) on Tuesday July 21, 2015 @08:28AM (#50151837)

    1) I have yet to meet an unsafe driver. These people driving for both services care about what they're doing unlike Taxi drivers. I've been nearly killed more times than I care to count by Taxi drivers who are working a long shift or who got their licenses in cracker jack boxes.
    2) If there's a problem, it gets resolved quickly with Uber or Lyft. With a Taxi company I have to deal with a local government bureaucracy who rarely follow up or actually deal with the complaint. I'm talking about you DC Taxi Commission.
    3) I travel frequently on business, I get one set of bills and it's concise not scribbled out and also not billed to some third party company you've never heard of.
    4) The pricing is consistent and easy to understand, not some byzantine billing scheme where just getting in the cab can cost you an arm and a leg. I also don't get taken for a ride so to speak, you know when the driver pads the meter.
    5) Obtaining a ride and tracking it is easy.

    Uber and Lyft can be put out of business very quickly if the protected monopoly of Taxi companies and various commissions just started offering a more competitive environment; that's the big threat here. You have a service that comes in and undercuts a cash cow for governments and for license holders. They don't like it because it threatens their bottom line and that's a valid argument but instead of being more competitive, they protest and burn things (like in France recently)

    I also agree that whoever is driving me should be screened, a safe driver and the vehicle I'm in should be safe and reliable but I'd argue that a lot of Taxis at least in the US don't meet that criteria regardless of the litany of bureaucratic organizations that are supposed to make sure that it is. I also want these services not to use me as a mined resource for further profit. If I can get all of that from a Taxi cab, I'll use them more.

    • You forgot:

      6) I only look at what I can get now and not what things will be like ten years from now.

      Uber is new and shiny. The drivers and the cars they have bought to do Uber are new and shiny. Give it ten years and a lack of a taxi industry to 'shine' over and they will be worse then the current taxi industry I assure you.
    • yeah your one data point is more meaningful than all of the other collected information

      woo woo

    • Uber and Lyft can be put out of business very quickly if the protected monopoly of Taxi companies and various commissions just started offering a more competitive environment; that's the big threat here. You have a service that comes in and undercuts a cash cow for governments and for license holders. They don't like it because it threatens their bottom line and that's a valid argument but instead of being more competitive, they protest and burn things (like in France recently)

      It's easy to provide a cheape

  • The local taxi companies have been a protected monopoly for too long and they have grown accustomed to it. With Uben/Lyft on the horizon, eventually they will learn to compete and improve their service. Uber/Lyft also will be brought in line to make sure their vehicles and drivers are safe, pay the required access fees to cab ranks and airports that will increase their price. After the shake up the free market will do what it should do, cheaper, better, safe taxi service.

    In the medium run the losers are t

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