Why is it important to Uber to be considered a “technology platform” and not a “transportation company?” What would the implications be if Uber were a “transportation company?” 

According to CEO and co-founder of Uber, Travis Kalanick, Uber is defined as a technological platform which connects both rider (passenger) and driver (micro-entrepreneur). It believes that their technologically advanced application helps in providing the passengers with the transportation providers available in the market with quickest pick up time, best quality ride and lowest fare charge. It is one of the best tech based company in the world which leverages economic engine to execute sharing economy in the market. They run the technology platform which facilitates monetary transaction for business of individual people, who are interested in renting their cars. Unlike other transportation company, Uber being a technology based platform is successfully able to sell rides and rentals without the investment of any capital to buy cars and taxies. It is important for Uber to be consider as a technology platform instead of "Transportation Company", because it seeks to avoid the regulatory cost for hiring and operating private vehicles and drivers within the market. These regulatory costs should be considerable on the basis of market size, taxi operator with a vehicle of certain standard, background checks, safety training, and city location knowledge. It denies to abide by these expensive regulatory requirements as of taxis since, Uber considers itself as a technology platform and its drivers as independent contractors or partners instead employees (Lee, et al., 2018). According to the report of Laurell and Sandström (2016), it acts as a podium for micro-entrepreneur to provide business opportunities. In addition to this, Uber not being a transportation company does not require the drivers to pass background checks. Uber keep these drivers deprive of all the benefits which the law guarantees to employees. As mentioned earlier, the company does not direct or control the driver rather it provide flexible work time. The associated drivers are free to work for anytime and can take breaks according to their requirement. They are not bounded by any contract and are free to work elsewhere. Uber play safe in this business environment and argues that they do not pay to the concerned drivers, rather they are paid by the customers. This gives access to the contracting person to collect and distribute the payments, and in between manages its own business-profitable margin. In contrary, in another report by Morgan & Kuch (2018), it is found that the above description of Uber also a different perspective. The company has absolute control over the drivers and they have to abide by the code of performance of Uber. The fare of ride is not negotiated with the passenger, rather it is fixed by Uber itself. Uber discuss certain micro rules for the driver's conduct like formal behaviour with customers, or exclude customer's contact after ride. Moreover, the contracted vehicle also requires to have company logo painted, as a term of agreement policy. Any form of deviation by the driver from such rules, would receive a tip as well as penalty, in conjunction to the modified behaviour. This can also be described as a typical feature that refers to the employer and employee relationship. It is also important to note that there are incidents where the company is not addressed as mere technological driven platform based company, but a transport firm. For instance, while operating in San Francisco in 2010 Ubercab avoided the taxi regulation by declaring itself as a limousine service and hired only the licensed chauffeurs. Despite of all these efforts, California agency ceased Ubercab business as it was not registered as Transportation Company (Geradin, 2015).

Considering the case, if Uber were a transportation company, then then it has to designate all its drivers as employees. These employees would be entitled to get facilities like pension, company-provided health insurance, worker's compensation and other related benefits. These added benefits for the driver-employees would come with an extra expense for Uber. Further, it is also obvious that it would consequently deduct fare from drivers to compensate these mandated benefits. This would be a disadvantage for those drivers who prefer cash over benefits. Apart from this, the company also have to operate according to the local limits on the number of taxis or cabs and abide by the regulations for operating within airports. Being a technology platform, Uber can double its fare in the peak hours are busy. On the other hand if Uber were a transportation company, the fare would be solely based on distance covered, mileage, and time consumed (Posen 2015). Furthermore, Uber presently deducts 20 % of the actual fare charged, but if it were a transportation company then it would deduct 40 % of the charged fare to pay local business tax, permitting fees, commercial insurance and training employees' fees.