Neither.
Uber offers 2 services. The one that made them popular was operating as a limo service, but cheap, with fast booking and automated account. All the pluses of limo service, but none of the pains for scheduling, tipping, billing, etc. It's just a modernized towncar service without the legacy overhead.
Uber's second service is UberX, which they introduced to compete with Lyft. Same principal as lift applies, in that it's community ride-sharing with some monetary compensation, but backed by Uber's existing peering infrastructure and billing systems.
It's the second service that's getting them into so much trouble, not the first. The first service follows all the livery laws. The second service has all the uninsured, unlicensed, poor quality drivers. Like Lyft or AirBnB, the peer2peer "Sharing Economy" is fundamentally at odds with the legally-protected and regulated systems currently in place.