LEGAL NATURE OF CONTRACT OF CARRIAGE CONCLUDED UNDER UBER SYSTEM Cover Image

LEGAL NATURE OF CONTRACT OF CARRIAGE CONCLUDED UNDER UBER SYSTEM
LEGAL NATURE OF CONTRACT OF CARRIAGE CONCLUDED UNDER UBER SYSTEM

Author(s): Svetislav Janković
Subject(s): Law, Constitution, Jurisprudence, Labor relations, Transport / Logistics
Published by: Правни факултет Универзитета у Бањој Луци
Keywords: Uber; intermediary; carriage; wet-lease of a car; employer-employee relation;

Summary/Abstract: At the beginning of the 21st century, computer technology and Internet connection have changed the communication among people and that modification of communication had a special reflection on the process of concluding a contract. This change had a particular impact in the field of transportation because people now could arrange their voyage through Internet platforms, without a physical presence in the pre-contracting process and the election of the appropriate carrier. It is the case in all branches of the public transport of passengers(sea, inland water, air, road, and railway carriage), where common carrier conventionally accepts to transport passengers. But, from 2010, previously in the USA, but afterward worldwide, it has appeared a new mode of transport people in the road branch, named Uber. At first sight, it looked like other types of transport, particularly to the taxi, because people under the Uber system were carried just like via taxi. But, it was and is, only at first sight, because regarding the Uber exist, at least, two oppositelegal standpoints.First, legal standpoint, actually legal qualification of the Uber carriage from the Uber representatives who claim that Uber does not carriage the people (especially not as a taxi), but only makes intermediation between passengers and drivers. This qualification is based in the sharing economy which enables Uber and similar systems (for example, Airbnb) in the way that common people who have a surplus with their goods and service, share them with others who at that moment have a bigger economical preference of consumption of that good or service. Two contracts appear – first, between Uber and driver, and second, between driver and passenger. Having in mind this type of legitimation, Uber serves only for the matching between drivers (common people who have cars and are ready to share) and passengers. Through its system, Uber resolves information a symmetry, due to its list of free and prepared drivers who are logged to the internet platform from which passengers can potentially choose and conclude the contract of carriage with some of them. As a conclusion of this standpoint, Uber is not a carrier but only an intermediary. The second legal qualification is summarized in the claim that Uber is, as opposed to the first sight, carrier. This qualification is based on the fact that Uber does not make only the link between driver and passenger, but organizes, enables and supervises the whole process of transportation which begins with matching the passenger with the driver and ends with the payment (which, inter alia, is collected by Uber through its banking account and after collection, divided between Uber and driver). Uber enables this kind of transport because, in the absence of it, this kind of transport would not exist, due to Uber being presented in the legal context not only as a company (legal person) but also as a market maker. It could be visible from this, also, an organizational role that appeared in the launch of this concept of transportation (through Internet platform) and, via it, linked the driver and passenger. Finally, the monitoring function is obvious. The Uber keeps the right to get the driver, one who does not accord with the Uber’s way of doing business, off the list. All of these arguments confirm indisputably the carrier’s side of the Uber, but not only that; this qualification of the Uber, from the angle of Labor Law, makes it an employer. In reality, the driver is not someone who shares his leisure time and a car (the surplus of it), as would be in the idealistic type of sharing economy, but someone who spends the most of the working hours in serving directly to the Uber, and indirectly, through the Uber, to the passengers. Finally, the third legal qualification of Uber appeared, which is manifested in hiring the car with the driver. Unlike the aforementioned intermediary role and role as the transporter, in this qualification the Uber „leases“, for a short period time, a car with driver to the passenger. This is, of course, not the truth because the passenger does not take direct possession of the car and driver, but only temporarily like in the limo service contract. But, unlike the limo service, Uber is more like a taxi, especially having in mind the purpose of these two types of service. The user concludes limo service contract for enjoying a luxury drive and, on the other side, in Uber system one concludes a contract only for a simple carriage, but not for luxury. To conclude, Uber is the most similar to the taxi service