Uber, an American worldwide online transportation network company, has grown significantly in the past seven years. Its use of mobile app has provided both drivers and consumers a more flexible and personal choice on their trip. Usually with a relatively low price and better car conditions, the launch of Uber service has put a threat on traditional taxi industry.
However, Uber recently has been put on an employment case in London by two Uber drivers, claimed they are wrongly classified as self-employed contractors by Uber instead as workers. Uber drivers should have the same rights as workers to be paid during holidays or while they are sick. After reading Steve Conlay’s blog about “The Case Against Uber”, I have a better understanding on the potential threats Uber may under after losing the case.
A huge back-pay of unpaid benefits for not only all the 30,000 Uber drivers in London but also for those in all other countries will fall on Uber. In addition, the company will need to be prepared for the future payments and a big change in their current business model. How could Uber respond to the extra payments? They could pass the costs through raising the fees paid by consumers, but which will be opposed to the initial offer of a relatively low price. Uber will lose one of their biggest competitive advantages.
Since the case is related to the employment law, all of us should wait to find out the results. But in my perspective, Uber drivers have enough freedom to be called self-employed. They simply chose their work period though logging in and logging off the app. And for a large part of Uber drivers, they only consider picking up the passengers as their part-time job. They are totally free to choose whether to work or not on holidays. Everything is not compulsory, including downloading the app, driving in their own cars, paying the fuels by themselves. Despite they are regulated by the consumer evaluation system, which for me is a two way agreement. Uber offers the channel for the people who would like to earn more using their spare time, in exchange, the drivers would be required to be responsible for their own reactions towards consumers. The appropriate punishment been put by Uber company after got complaint from consumers is reasonable. And Uber should have the right to choose whether allow those who have received several complaints to get access into the Uber driver business in order to protect their reputation among consumers and ensure the quality of services they offered.
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Bibliography:
http://www.bbc.com/news/business-37629628
“What does Uber’s employment case mean?”
Tom Espiner, Business reporter, BBC News,12 October 2016.
“Uber faces court battle with drivers over employment status”
Hilary Osborne, Tuesday 19 July 2016.
External Links: http://www.bpe.co.uk/why-bpe/blog/2016/08/the-case-against-uber/ , Steve Conlay,
2nd August 2016.
