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Uber: A Digital Service or a Transportation Company?

The European Court of Justice (“ECJ”) recently ruled that Uber, the ride-hailing software application, is officially a transport company and not a digital service. Uber argued it was a software service because it merely helps people connect through its application. In the ruling, the ECJ said this process made Uber a “service in the field of transport” under European Union law. While Uber says the ruling will not affect the way it operates in Europe, some say this could hinder the online economy. As a transportation service, Uber will be subject to various regulations and laws governing the transport industry, while other software companies will not. This ruling applies only to the European Union and does not give any indication of Uber’s company classification in other areas.

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Uber: A Digital Service or a Transportation Company?