Are Platforms Like Welcome Pickups are Classified as Transportation Services or Information Service Providers in EU?

The legal classification of platforms like Welcome Pickups hinges on their operational model and the degree of control they exert over transportation services. In its 2017 judgment, the European Court of Justice (ECJ) concluded that Uber’s service, which connects individuals with non-professional drivers via a smartphone application, is inherently linked to transport services. Consequently, the ECJ classified Uber as a transportation service provider rather than an intermediary or information society service. This was due to Uber’s significant control over essential aspects of the service, including setting prices, determining service terms, and managing the platform’s overall operation. Consequently, Uber was required to obtain the necessary transportation licenses and comply with national regulations within EU member states. 

Welcome Pickups, positions itself as an intermediary platform connecting travelers with local, professional drivers. Welcome Pickups set standardized pricing for its services, the transportation is executed by licensed professionals. This operational model aligns closely with that of UBER as a transportation service, which primarily offers intermediary transportation services with exerting extensive control over the actual transportation operations. WelcomePickups sets the prices, controls virtual categories like comfort, business or van etc. and it modifies offers from drivers, drivers are not aware of price set by Welcome Pickup and can know it only when they meet clients in the car. WelcopePickups does not show multiple offers to clients as it is clarified to be a necessary for service to be information society service as was found in Airbnb in details in Legal Opinion of Advocate General Szpunar https://curia.europa.eu/juris/document/document.jsf;jsessionid=307DD51833D0D546273DC90511A7FEF3?text=&docid=213504&pageIndex=0&doclang=en&mode=lst&dir=&occ=first&part=1&cid=591734 and by decision of Judgement of the Court (Grand Chamber) as of 2019 December https://curia.europa.eu/juris/document/document.jsf;jsessionid=307DD51833D0D546273DC90511A7FEF3?text=&docid=221791&pageIndex=0&doclang=en&mode=lst&dir=&occ=first&part=1&cid=591734 

The distinction between being classified as a transportation service provider versus an information society service depends on factors such as the level of control over service, pricing mechanisms, and the nature of the relationship with service providers, Welcome Pickups makes a selection of a driver after payment is secured by its own not transparent algorithm. Platforms like Welcome Pickups must consider these nuances carefully to ensure compliance with applicable laws and regulations in each country they operate.

Though WelcomePickups allows licensed supply via its agreement, it sets prices , it has decisive influence, drivers are not connected directly to clients before payment is secured, Welcome Pickups product controls all aspects of bookings and does not allow for multiple offers to be a true booking platform like Airbnb. 

In summary, Welcome Pickups does set prices for its services, does control its own invented products based on invented categories same as UBER, does not allow clients to see multiple offers from suppliers. Makes a selection of a driver after payment is secured by its own not transparent “black box” algorithm. Who selects exact driver with WelcomePickups? – It is Welcome Pickups who selects and assigns exact carrier or a driver for your ride.

This approach aligns it to models like Uber’s, which have been deemed transportation services due to their comprehensive control over the service delivery process and it does not align with the model of Airbnb which is clarified by ECJ to be an information society service in 2019.