In the new proposed law, Uber envisions an ecosystem that offers an “industry-wide level playing field” and sets a “consistent earnings baseline” for workers across different platforms.
Uber Technologies Inc (NYSE: UBER) has shared a regulatory draft with the European Union urging it to introduce a new framework for the gig economy workers. According to the United States ride-hailing company, the European Union should relook into the gig employment sector, particularly by introducing California-like laws in the sector. Whereby the gig platform employees should be regarded as independent contractors who are entitled to some employees’ benefits.
“We’re calling on policymakers, other platforms, and social representatives to move quickly to build a framework for flexible earning opportunities, with industry-wide standards that all platform companies must provide for independent workers. This could include introducing new laws such as the legislation recently enacted in California,” Uber CEO Dara Khosrowshahi said.
Uber Gig Work Reforms and Company’s Regulatory Affairs
Uber has faced numerous challenges in Europe both from the drivers and the regulators. Among them, the company the United Kingdom’s Supreme Court is set to deliver a ruling on whether Uber’s drivers should be classified as workers entitled to protections like a minimum wage and holiday pay.
Besides, Uber drivers from the Netherlands are demanding the company to come out and reveal its work allocation algorithms. Notably, the Uber app had been temporarily banned in London late last year over safety reasons. Previously, the European Court of justice ruled the company is to be dealt with as a transportation company rather than a digital firm.
In an ongoing case battle, Uber is awaiting a ruling on February 19 from the Britain Supreme Court that was filed by two drivers back in 2016. In the ongoing case, the plaintiffs demand Uber drivers to be entitled to workers’ rights such as the minimum wage, paid holidays, and rest breaks. However, the company claims if the case is ruled against it, the cost would trickle down to the customers.
In the new proposed law, Uber envisions an ecosystem that offers an “industry-wide level playing field” and sets a “consistent earnings baseline” for workers across different platforms.
With the coronavirus having impacted its core business significantly as people stayed at home to avoid contracting the virus, Uber is by all means pushing for regulations that will not tie up its expenses in the future.
Despite the coronavirus crisis, Uber stocks managed to rally approximately 52% last year according to data provided by MarketWatch. Besides, they are up approximately 27%, 18%, and 9% in the past three months, year to date and the last one month respectively through last Friday.
Uber has a reported market valuation of approximately $112.25 billion with 1.85 billion outstanding shares. The company is facing competition from other companies including Lyft and also the public transport industry.
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