Alliott Group report shows legal status and future of Uber and ‘ride sharing’ industry remains uncertain in many jurisdictions
13 October 2016
A report comparing eight jurisdictions around the world from Alliott Group, an international alliance of over 160 professional services firms, reveals a wide variety of government responses to the regulation of ride sharing companies such as Uber and Lyft
Los Angeles, CA
If Uber must classify its drivers as employees, it will be subject to additional regulations and increased costs which may render its current business model unprofitable
Some of the highlights from the report are detailed below:
London, United Kingdom
Paul Marmor, partner at Sherrards Solicitors comments: “A High Court ruling confirmed that Uber’s ride sharing app does not breach UK law, but the outcomes of employment law cases related to the legal classification of drivers will have a bearing on how the company operates in the future.”
Australia
Jon Broadley of Broadley Rees Hogan comments: “In Sydney, the industry is now regulated with the state Government describing the change as a necessary update on ‘out dated’ transport regulations. Taxi licence owners have been compensated with a AUD 250 Million ‘industry adjustment package’.”
Ohio, USA
Chris Blake of Hahn Loeser & Parks adds: “The responses across Ohio’s main cities have varied, some city councils passing ordinances to regulate ride sharing, while others have left companies such as Uber operating ‘in a regulatory void’. New state-wide legislation is due in March 2016.”
California, USA
Shane Devins of Masuda Funai comments: “While ride sharing services can now legally pick up passengers at LAX, as in London, their long-term prospects hinge on a lawsuit related to the classification of drivers and the employment law implications that may follow.
New Delhi, India
Alfred Adebare of LexCounsel comments: “Uber continues to operate in Delhi despite its application for a license being rejected twice. Should Uber become a licensee, compliance would require Uber to modify its business model to such a degree that its future could be threatened.”
Germany
Stefan Simon of SPITZWEG Partnerschaft comments: “Uber is illegal in Germany as the 1968 German Passenger Transportation Act prevents the company from registering as a ‘taxi’ transportation system. However, bigger questions related to EU law and the freedom of establishment and services give Uber hope.”
Download the full report