Blow for Uber as EU court says it’s a transport firm

Uber has suffered a major blow in Europe with the EU’S highest court declaring it a transport provider, and not an internet company as it had argued. The European Court of Justice ruled yesterday that Uber is “a service in the field of transport”. It means that it has to abide by taxi laws.

UBER has suffered a major blow in Europe with the EU’S highest court declaring it a transport provider, and not an internet company as it had argued.

The European Court of Justice ruled yesterday that Uber is “a service in the field of transport”. It means that it has to abide by local laws governing taxi companies, rather than the much less stringent restrictions for tech firms.

The ruling will make it easier for hostile regulators to chase Uber out of cities. The service does not exist in major cities such as Copenhagen, Budapest and Barcelona, and has also lost its licence in London, although it continues to operate as it appeals against the decision.

The company insisted the ruling would not affect it in most markets, including the UK, saying it already abides by local transport laws in many jurisdictions. However, if it had been classed as an “information society service”, the company would have been protected by EU freedoms on providing online services.

The ECJ also pointed out that “Uber exercises decisive influence over the conditions under which the drivers provide their service”. Separately, Uber has revealed that more than 1,000 of its drivers in the UK are working at least 70 hours a week. In a letter to the Commons business, energy and industrial strategy committee, it said almost a third of its 50,000 UK drivers are logged in for more than 40 hours a week, 8pc for 60 hours a week and 2.6pc for 70 hours a week. The company said it would limit how long drivers can log in for, most likely in January.

Last night, Uber also named Barney Harford as its chief operating officer. The Briton previously worked with Uber’s CEO Dara Khosrowshahi at Expedia.