Uber, the controversial yet popular ride-sharing service has lost its appeal in the UK after an employment tribunal ruled in favour of the drivers against the company. This past Friday marked the end of the case with Uber losing its appeal against the drivers.
Dr Mareike Mohlmann, Assistant Professor of Information Systems Management at the Warwick Business School, gave his expert opinion on the matter, stating:
“For drivers, this decision is likely to result in advantages; some drivers might receive a higher salary once being officially employed by Uber since they might now get compensated for sick leave or holiday pay. It might be easier for them to have a voice when organising in workers’ associations, and thus this decision is likely to increase drivers’ work satisfaction.”
Although Uber lost the appeal against the drivers, Molhmann brings up several of the advantages the drivers now have which ultimately may benefit all parties involved. Official employment, higher salary and the opportunity to receive sick leave and holiday pay are all great incentives that should allow Uber drivers to flourish, creating better work environments in a country where Uber has struggled thus far.
On the flip side, Mohlmann also went on to bring up several of the potential disadvantages that drivers may face:
“However, it is also likely to decrease drivers’ autonomy. Currently, Uber drivers are self-employed and work as freelancers. Thus, for instance, they can choose their working hours as they please, or use the car not only for business but also for private purposes.
Due to this flexibility to work whenever it fits into their schedule, many Uber drivers are not driving full-time, but using Uber as a source to generate income in addition to their main job. The decision might limit access to jobs for some of the current Uber drivers, in particular, those that work for Uber on a part-time basis, since Uber might hire less employees that are employed in full-time positions in future.”
In other words, Uber drivers wanting only to do part-time or those who require more flexibility may need to adhere to a much more rigid itinerary. It should prove to be interesting in seeing where Uber goes from here when it comes to their reach within the UK.
Liked this article and want to read more like it? Check out Brendan Frye’s coverage of Uber’s initial struggles in the UK and Uber’s first venture into offering an IPO.
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