A court in Geneva has allowed Uber to restart operations in the city, on the condition that the company sets up a 35,4 million Swiss franc fund for its employees. Most of the money will be used to provide Uber employees with social security contributions as required by Swiss law, as well as to compensate employees for wages.
For Uber, the last court case will come as a welcome victory after months of legal battles with authorities in Switzerland. In May 2022, Uber’s services were suspended in Geneva as the courts ruled that the firm fell under regulations relating to taxis and transport, and therefore should regard its drivers as employees, rather than self-employed.
Under Swiss law, employees who sign a work contract with a firm are entitled to certain social security benefits, which their employer is required to partially pay for. Though Uber’s initial ban was lifted quickly in June 2022, since the company demonstrated a willingness to find a solution with the Swiss courts, the firm must now abide by the latest judgement in order to keep operating in Geneva.
The taxi company has been active in Geneva for nearly 10 years. While taxis in Switzerland are generally seen as a more expensive option, with many preferring to use public transport if possible, Uber has provided a lower-cost alternative to traditional taxi services, making private transportation more affordable across the country.
But the firm’s arrival in Switzerland hasn’t been so positive for traditional taxi drivers. In October 2022, taxi drivers in Geneva came out in protest against Uber, alleging that authorities in Switzerland have been too lenient on the company, despite all the controversy and legal troubles, and have given Uber too many concessions.