Uber is the go-to app in some parts of Europe largest city— even in places with well-developed public transportation systems. It’s also an important source of revenue for the gig economy, which has a population of 28 million. But the ride-sharing giant’s future in the region could be under threat as a proposed law on how gig workers are recognized could lead to massive job losses and higher taxi fares.
An EU proposal, now in the final stages of negotiations, would give gig workers, including ride-sharing and food delivery drivers, de facto employee status by giving them a minimum wage and more benefits.This could shock the world Rideshare Leader Uber’s presence in Europe has forced it to cut jobs and raise fares by up to 40%.
“If Brussels forces Uber to reclassify drivers and couriers across the EU, we expect the number of job opportunities to decrease by 50-70%,” said Anabel Díaz, Uber’s regional general manager for Europe. wealth in an emailed statement Wednesday.
She added that the company may have to halt operations in hundreds of cities across Europe, where it is a leading player with operations in 3,000 towns and cities. Diaz stressed that the scale of job losses and missed money-making opportunities can be significant.
“Taking this into consideration, more than 1 million people in Europe earned income through the Uber app last year, which means that up to 700,000 people could lose the opportunity to work flexibly, and those who need it most will see a significant reduction in income,” she said . “It’s the equivalent of Volkswagen or Accenture going bankrupt.”
More benefits, but a problem
If passed, the proposal, known as the Platform Work Order, would allow companies such as Uber and Deliveroo to provide benefits Examples include paid parental leave, social security, etc. for drivers or passengers, just like those provided for full-time employees.
Since the gig economy began implementing this measure in 2021 in the wake of the COVID-19 pandemic, squeezed Because demand for its services far exceeds supply.The need for legal certainty on gig workers’ rights and status moves front and center across Europe as a way help workers Earn a reasonable living through their “odd jobs.”
But Uber argued that some of its gig workers Enjoy flexibility This is why contract or self-employed worker status is advantageous in terms of when and how they work. Changing the existing model while adopting one that does not recognize independent working would force Uber to limit its operations to European regions where demand for its services is high.
“In order to manage employment costs, Uber will be forced to consolidate the work hours of fewer employees,” Diaz said. “Drivers and couriers will need to apply for an open position, if one becomes available; work shifts at specific times and locations; accept them Each trip received; and agree not to work on other applications.”
The ride-hailing company says it’s all about regulations that will help improve conditions for workers, but correct classification is key to achieving this, and the current version of PWD falls short in this regard.
“Unfortunately, the PWD as currently drafted will not provide legal certainty to the industry, but will instead lead to more litigation over the status of platform workers and do nothing to improve working conditions for the truly self-employed,” Diaz said.
Uber’s European legend
A lack of legal clarity has been a source of concern for platforms like Uber in Europe for years.Brussels has been pushing for the law This helps level the playing field for online and traditional businesses and can serve as a blueprint for the rest of the world to follow gig economy regulations.
For its part, Uber has tried to adapt to changing labor conditions by signing agreements with unions in France, Belgium and the United Kingdom that provide the following benefits: pension and holidays. But inconsistent regulations across Europe continue to pose obstacles – Spain, for example, has placed restrictions on private cars, carrying passengers Through mobile platforms like Uber, ordinary taxi drivers have resisted competition.
Delivery Platforms Europe, whose members include Uber, Bolt and Deliveroo, said in 2017: “In Spain, reclassification is being carried out against the explicit will of riders, whose representatives are estimated to currently number 8,000. unemployment.” Press release Regarding the impact of PWD.The group also told Reuters In June, the EU’s wider proposals in their current form did not “draw a sufficiently clear line between employment and self-employment”.
Uber’s Diaz insists the impact of disabled people on workers and the wider EU economy takes precedence over its profits. She noted that Uber’s operations through 2022 will pay more than 14 billion euros ($15 billion) to drivers, couriers and merchants who work with the company to help boost local economies.
“The EU has a once-in-a-lifetime opportunity to set global standards for well-protected independent platform work,” Diaz said. “But of course it is vital that the EU does not ban independent work, which we know is a problem for drivers and couriers. The number one reason to be attracted to the type of work that Uber offers.”
Svlook
