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Would Uber workers be classed as employees under EU proposal?

An Uber boss has issued a stark warning that the EU's proposal to classify gig workers as de facto employees could see the ride sharing firm shut down operations across the bloc and see price hikes of up to 40% in some European cities, reports The Financial Times.



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Uber considers its drivers to be independent contractors who are exempt from most employment protections. California disagrees. The “gig economy,” also known as the “sharing economy,” has made significant changes to many aspects of the job market. Many of those changes are good.

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Meanwhile, in Germany, Uber now operates as only an intermediary company follows several legal disputes. German Uber journeys are carried out by car rental companies, where the drivers are mostly permanently employed.

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Uber and Lyft consider their drivers to be independent contractors, not employees. They view their role as connecting willing riders with willing independent drivers. The arrangement helps them avoid many significant expenses to which taxi and other transportation companies are subject.

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Uber treats its drivers as Victorian-style “sweated labour”, with some taking home less than the minimum wage, according to a report into its working conditions based on the testimony of dozens of drivers.

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For the employee, the company withholds income tax, Social Security, and Medicare from wages paid. For the independent contractor, the company does not withhold taxes. Employment and labor laws also do not apply to independent contractors.

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That said, Uber is not in every city in Spain. Not due to regulations but simply due to demand. If there is no demand there is no money. If there is no money there are no drivers.

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Interactive chart of Uber Technologies (UBER) annual worldwide employee count from 2017 to 2023. Uber Technologies total number of employees in 2022 was 32,800, a 11.95% increase from 2021. Uber Technologies total number of employees in 2021 was 29,300, a 28.51% increase from 2020.

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Uber faces bans and restrictions in many countries, including China, Switzerland, Turkey, Denmark, Hungary, Thailand, Canada, Germany, Romania, Bulgaria, Italy, Hong Kong, and parts of Australia. The bans often stem from Uber's lack of adherence to local regulations and its unfair competition with taxi services.

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Uber faces bans and restrictions in many countries, including China, Switzerland, Turkey, Denmark, Hungary, Thailand, Canada, Germany, Romania, Bulgaria, Italy, Hong Kong, and parts of Australia. The bans often stem from Uber's lack of adherence to local regulations and its unfair competition with taxi services.

MORE DETAILS