UK court paves way for overhaul of Uber business model

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All ride-hailing companies in London have to provide better protection to riders

Uber Technologies lost a bid to challenge part of a landmark decision on the working rights of its drivers, meaning the ride-hailing app and its London rivals will have to overhaul their business models. Picture: BLOOMBERG

Uber and others “will need to amend the basis on which they provide their services”, after the court concluded that “in order to operate lawfully, an operator must undertake a contractual obligation to passengers”, the judges said on Monday. They also said London’s transport regulator will need to reconsider its guidance to reflect the ruling.

“If the obligation must be undertaken by the operator, the operator will have a powerful incentive to ensure that the drivers it uses are reliable and, if something does go wrong, a remedy against the operator is likely to be worthwhile,” the judge said in the ruling.

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