Britain’s top court said Uber’s share price had dropped on Friday, with its drivers to be considered “workers” rather than independent contractors.
Ride-hailing giant stocks ranged from 1.6 per cent to $ 58.07 in prepaid trading as of 9:17 am after a UK Supreme Court ruling that considered Uber drivers eligible for protection such as minimum wages and paid leave.
The decision rebuffed Uber’s argument that its drivers are independent contractors who are not entitled to such benefits – a claim central to the company’s business model.
Uber acknowledged that the ruling could have major implications for the UK ride-sharing industry, even though it focused on only a handful of drivers who originally brought the case in 2016. The company has around 60,000 drivers in the UK, including 45,000 in London.
Vesush Securities analyst Daniel Ives said in a Friday research, “The important thing is that this case could set a precedent for other workers and companies in the gig economy across the UK and Europe, a way for the overall ecosystem Would be a shock. “
The Supreme Court unanimously rejected Uber’s appeal of previous rulings, which sided with a group of drivers challenging the company’s independent contractor model.
The seven-judge panel found that Uber had “significant” control over the work of its drivers and rejected the company’s argument that it facilitated transactions between bus drivers and riders.
Uber’s service “is designed and organized to provide passengers with a standardized service in which drivers are considered sufficiently interchangeable and whereby Uber derives the benefit of customer loyalty and goodwill over individual drivers, ” The judgment says.
The ruling comes nearly three months after Uber won a political victory in California, where voters approved a ballot measure exempting ride-hailing drivers from a controversial law aimed at gigs to tech companies as employees It was to force the staff to treat them. Uber and rival Lyft threatened to stop their actions in the state before the measure was passed.
Uber said Britain’s ruling “labor” status was contrasted to some of its drivers from the country’s “employee” classification, which provides broad protection.
The San Francisco-based company also said it had made “significant changes” to its British business since the case was brought out in 2016, such as giving drivers more control over how they earn and illness or injury. Provide free insurance in case of.
Uber’s Regional General Manager for Northern and Eastern Europe Jamie Heywood said in a statement, “We are committed to doing more and will now consult with every active driver in the UK.
With post wires