[EMEA] Platform workers legislation could force Uber out of EU cities

According to a senior Uber executive, the ride-hailing company could be forced to pull out of ‘hundreds’ of European cities as a result of new EU gig economy legislation, Personnel Today reports.

The EU Platform Workers Directive would reclassify drivers and couriers working for Uber and similar companies as employees, granting them full working rights.

The majority of platform workers in the EU are currently classified as self-employed, despite having to abide by similar rules and restrictions to employed workers. The EU reportedly wants to improve working conditions for such workers and was set to debate the legislation this week.

Anabel Diaz - head of Uber’s mobility division in Europe - has urged policymakers to take into account workers’ desire for flexibility.

Speaking to the Financial Times, Ms Diaz said, “If Brussels forces Uber to reclassify drivers and couriers across the EU, we could expect to see a 50-70% reduction in the number of work opportunities,” a move that would lead to Uber pulling out of many European cities.

The European Commission reportedly estimates that the new law would force Uber to raise prices by as much as 40 per cent. Uber contends that this could be further exacerbated by a lack of drivers and longer waiting times.

Spain became the first country in the EU to give gig economy workers full employee rights, in 2021. However, Ms Diaz claimed that such rulings led to “devastating” job losses.

“In order to manage the costs of employment, Uber would be forced to consolidate hours across fewer workers,” she said.

“Drivers and couriers would need to apply for an open role, if one is available; show up for shifts at specific times and places; accept every trip they receive; and agree not to work on other apps.”

In 2021, a UK Supreme Court ruling held that Uber drivers are “workers” rather than self-employed, meaning they are entitled to basic rights such as holiday pay, rest breaks and the national minimum wage.

In Germany, Uber reportedly uses fleet management companies that directly employ their drivers so it can abide by local legislation.

In February 2021, the European Council announced that it would consult over the rights of workers employed by digital platforms and stated that it was ready to start negotiations with the European Parliament on the content of the new law in June.

Source: Personnel Today

(Links and quotes via original reporting)

According to a senior Uber executive, the ride-hailing company could be forced to pull out of ‘hundreds’ of European cities as a result of new EU gig economy legislation, Personnel Today reports.

The EU Platform Workers Directive would reclassify drivers and couriers working for Uber and similar companies as employees, granting them full working rights.

The majority of platform workers in the EU are currently classified as self-employed, despite having to abide by similar rules and restrictions to employed workers. The EU reportedly wants to improve working conditions for such workers and was set to debate the legislation this week.

Anabel Diaz - head of Uber’s mobility division in Europe - has urged policymakers to take into account workers’ desire for flexibility.

Speaking to the Financial Times, Ms Diaz said, “If Brussels forces Uber to reclassify drivers and couriers across the EU, we could expect to see a 50-70% reduction in the number of work opportunities,” a move that would lead to Uber pulling out of many European cities.

The European Commission reportedly estimates that the new law would force Uber to raise prices by as much as 40 per cent. Uber contends that this could be further exacerbated by a lack of drivers and longer waiting times.

Spain became the first country in the EU to give gig economy workers full employee rights, in 2021. However, Ms Diaz claimed that such rulings led to “devastating” job losses.

“In order to manage the costs of employment, Uber would be forced to consolidate hours across fewer workers,” she said.

“Drivers and couriers would need to apply for an open role, if one is available; show up for shifts at specific times and places; accept every trip they receive; and agree not to work on other apps.”

In 2021, a UK Supreme Court ruling held that Uber drivers are “workers” rather than self-employed, meaning they are entitled to basic rights such as holiday pay, rest breaks and the national minimum wage.

In Germany, Uber reportedly uses fleet management companies that directly employ their drivers so it can abide by local legislation.

In February 2021, the European Council announced that it would consult over the rights of workers employed by digital platforms and stated that it was ready to start negotiations with the European Parliament on the content of the new law in June.

Source: Personnel Today

(Links and quotes via original reporting)