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U.K. Ruling Is ‘Gut Punch’ for Uber, Says Dan Ives

Feb.19 — Dan Ives, Wedbush Securities equity research analyst, discusses how the U.K. court decision that says Uber drivers are workers changes things for the gig economy. He speaks to Taylor Riggs on “Bloomberg Technology.”

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Feb.19 — Dan Ives, Wedbush Securities equity research analyst, discusses how the U.K. court decision that says Uber drivers are workers changes things for the gig economy. He speaks to Taylor Riggs on “Bloomberg Technology.”

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23 Comments

23 Comments

  1. Luke T

    February 20, 2021 at 12:01 am

    Bro. Uber is part time work. They should feel lucky to have work as a contractor. They aren’t employees. So
    Simple

    • Mark Freeman

      February 20, 2021 at 12:25 am

      It’s less about the workers wanting to be treated as employees, and more about the government saying to Uber, if you treat your workers like employees, then they are employees. Currently Uber gets to pay them employee wages, without any of the benefits of being an employee, such as a notice period. Why would they require this? Well, if Uber wants, they can jetison their employees at a moments notice, which would then leave thousands of unemployed ppl in the UK. Who then deals with supporting these ppl? The UK gov. So, they are simply taking out “insurance” by requiring that Uber make their employees, and look after them as real employees and not contractors.

    • Luke T

      February 20, 2021 at 12:51 am

      @Mark Freeman you made a comment saying , “currently Uber gets to pay them employee wages” yet, don’t they receive their wages from the contract work they do for Uber? Or does Uber have them on a hourly scale?

    • Mark Freeman

      February 20, 2021 at 1:04 am

      @Luke T I don’t know, my point is, really, employment law is very complicated and is designed with three things in mind: Economic stability, employee welfare, and income tax. By treated employees as contractors, even though they work as if they are employees, then Uber creates an unpredictable point of failure in the system.

    • Luke T

      February 20, 2021 at 1:11 am

      @Mark Freeman you make these claims that they are employees , yet they are free to come and go when ever how ever they want. Most of them like the freedom to be a part time contractor, not directly hired from the company directly.

      It’s complicated what they are doing. But I don’t personally think they are hourly, employee workers.

    • Mark Freeman

      February 20, 2021 at 1:34 am

      @Luke T I am not making any claims, I am just saying it does not surprise me what has happened given Uber is creating a systemic risk that they could just walk away from. Lots of ppl have been lulled into a false sense of security.

    • Luke T

      February 20, 2021 at 1:53 am

      @Mark Freeman they are free to work or not work as they please. They are not employees. Doesn’t matter how many hours they dedicate. Just because i play video games for 12 hours a day doesn’t make me an employee of blizzard.

    • rik michaels

      February 20, 2021 at 3:25 pm

      This ideology is why the future or dystopian. Giving all the power to the corporations and beg for Scraps as peasants. You’re the reason so many people kill themselves

    • rik michaels

      February 20, 2021 at 3:26 pm

      @Mark Freeman it’s over his pro corporate oligarchy boot licking head, he wants the powerful to profit and workers get fucked but be happy they’re fucked cuz they have a job

    • Luke T

      February 20, 2021 at 4:24 pm

      @rik michaels they aren’t employees. They are contract workers, they are free to come and go as they please. I’m sure, if they were paid hourly rate. They would get paid less than at booming times. Workers can make up to 60-80$ per hour of peak hours.

  2. Roma Tadaser

    February 20, 2021 at 12:31 am

    0:39
    vom.ind.in

  3. Jorge Arellano

    February 20, 2021 at 2:19 am

    Seems like this could easily be solved with a Franchise model. Pay a fee for access to the network and give us 30% royalties and use this Pricing structure. If they don’t comply then Uber can simply kick them out if they wish to, if the driver doesn’t feel they’re making enough money then they can stop the franchise agreement and move on; just as any other business.

    • Aqua will purify Corona

      February 20, 2021 at 11:32 am

      Why they still haven’t done it then?

    • Jorge Arellano

      February 20, 2021 at 9:07 pm

      @Aqua will purify Corona Because it’s easier to just categorize them as “partners” or contractors. But if Uber has to choose between employees and maybe a franchise model, I think it would choose a franchise model. I actually think they considered it in California. I think the issue here is that usually freelancers and independent contractors can choose their own rates, and in this case, the driver can’t and they have to do whatever Uber tells them to do, which doesn’t fall into the “independent contractor” way of doing business as far as I know.

    • Jorge Arellano

      February 20, 2021 at 9:10 pm

      @Aqua will purify Corona With a franchise model, Uber can set their terms and conditions in the contract and reserve the right to cancel it if the Driver isn’t complying with the rules and stuff. Just like McDonald’s, which doesn’t only own the rights to the brand but owns, in many cases, the land too. So they can terminate your lease if they see you’re not complying.

    • Aqua will purify Corona

      February 20, 2021 at 10:01 pm

      @Jorge Arellano Yea you’re right. It makes sense

    • Aqua will purify Corona

      February 20, 2021 at 10:01 pm

      @Jorge Arellano franchise model seems to be the best option here. You’re right 👍

  4. Fred Badger

    February 20, 2021 at 6:54 am

    The Court looked at the facts rather than whether or not the drivers are exploited. Whether or not an Uber worker is self-employed is a matter of law. The court asks: Is this a service contract (employment) or a contract for services (self-employment).
    In general, workers are employees. That is the default. and the onus is upon the parties to the contract to show that it is a contract for services (self-employment) and not a contract of service (employment).

    Not easy to do. I have been working for most of the last 50 years as a self-employed contractor and have often been asked to sign contracts that purport to be a contract for services. But when I read the terms, the contract is a contract of service and the relationship is master and servant.

    Having said that, readers should recall that court decisions in civil cases are retroactive. Uber will have financial liabilities to workers and the government dating back to when they started operations. And will probably have to file for bankruptcy. The Uber workers will lose their jobs and may owe back taxes and employee social contributions to the government.

    Customers will have to revert to official taxis and minicabs. And prices will rise as the market shifts back from one that is relatively free to a controlled market with high entry cost for service providers.

    So this is a loss-loss situation for workers and consumers. A private-member’s Bill in Parliament might be the way to go. Uber is dead in its tracks. But Parliament could remove the block to future similar ventures in this sector.

    • Aqua will purify Corona

      February 20, 2021 at 11:37 am

      Man you should be the one reporting this.
      Thanks for explaining. 👍

    • James Bedford

      February 20, 2021 at 3:37 pm

      Technically, Uber is responsible for all of the tax liabilities. They are already in disagreement with HMRC (IRS Equivalent) over VAT charged (or not) = ~£1 billion.
      As this is retroactive, Uber is also responsible for paying PAYE taxes for employees and National Insurance contribution if they have failed to take these from employees gross pay

  5. the_internet_

    February 20, 2021 at 7:47 am

    what exactly is the court ruling? No one even explained that.

    • Ali Mohamed

      February 21, 2021 at 1:46 am

      Uber drivers in the uk are considered workers and not self-employed from this court ruling, workers in the UK have guaranteed rights, from minimum wage, rest breaks, sick days and payed holidays, Uber will have to provide all those benefits to its drivers.

  6. Roman A. Oulko

    February 20, 2021 at 10:22 pm

    haha Travis

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