Uber Technologies (NYSE:UBER) shares are trading defensively on Monday as a UK court decision affecting rival private taxi operators impacts the stock.
Reuters reports that the UK Court of Appeal overturned a previous ruling that would have required UK taxi operators to pay a 20% value-added tax on profits made outside London. This ruling was seen as favorable to Uber (UBER) as it leveled the financial playing field between private taxi drivers and the ride-hailing company.
Uber (UBER) took the case to court after the UK Supreme Court ruled that Uber (UBER) drivers should be classified as employees rather than contractors. Uber (UBER) argued that private-hire taxi driver operators should have to establish contracts with passengers, resulting in a VAT on each trip.
However, the ruling was later reversed following a challenge by UK private taxi operators Delta Taxis and Veezu.
Uber (UBER) is down more than 1%, with Lyft (LYFT) shares also dropping by a similar amount in sympathy.
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