Uber Technologies (NYSE:UBER) shares are trading defensively Monday as a decision by a UK court affecting rival private taxi operators weighs on the stock.
According to Reuters, the UK Court of Appeal overturned a lower court ruling that would have required UK taxi operators to pay a 20% value-added tax on profits made outside London, a ruling that was favorable to Uber (UBER) as it put private taxi drivers on the same financial footing as the ride-hailing company.
Uber (UBER) had initiated the case after the UK’s Supreme Court’s decision that Uber (UBER) drivers were employees, rather than contractors. Uber (UBER) asked the court to rule that private-hire taxi driver operators had to enter into a contract with passengers, resulting in a VAT on each trip.
However, the ruling was subsequently reversed following a challenge by UK private-taxi operators Delta Taxis and Veezu.
Uber (UBER) is lower by more than 1% with shares of Lyft (LYFT) off a similar amount in sympathy.