A Major Investor Is Suing Uber's Former CEO For Fraud
It's been a rough year for Uber and the company's former CEO Travis Kalanick, and now a major investor is suing Kalanick for fraud.LEARN MORE
The court ruled Uber's drivers aren't self-employed and need more benefits.
If Uber wants to continue to operate in the United Kingdom, it needs to treat its drivers better.
On Friday, a London court upheld a ruling that Uber needs to treat its drivers like full employees by providing benefits and a minimum wage.
Uber treats its drivers like independent contractors. This business model reduces costs for the company and means employees don't need formal contracts. The practice is found in other "gig economy" companies, like TaskRabbit, where people work on demand through a digital marketplace.
The law firm working on the case against Uber called it "a landmark decision" that will have "significant implications for approximately 40,000 Uber drivers and, more broadly, individuals engaged across the so-called 'gig economy.'"
Much of the pushback against Uber is that it offers lower rates than traditional taxi services, a benefit of cutting costs on employees.
If Uber complies with the court, drivers may bring in a higher salary and be able to have more of a voice. However, the company's costs would also increase, which could increase ride fees.
This hasn't been a good year for Uber and London. Just months ago, the city decided not to renew the company's license. At issue was how Uber vets its drivers, reports criminal offenses and obtains background checks.
But the U.K. isn't the only country Uber's had trouble in. Denmark banned it, Bulgaria's Supreme Court ruled against it, and Hungary said the service was illegal — just to name a few.
The court's decision could set a precedent for other countries and have an effect on other similar business models.
Uber is still not taking no for an answer. London is one of its largest international markets. It plans to file another appeal case.
Unions are seeking a pay raise for the current year, but the government says it will only talk about the year ahead.By Frank Augstein / AP
Former Israeli Prime Minister Naftali Bennett became one of the few Western leaders to meet President Vladimir Putin during the war.By Tsafrir Abayov / AP
The new sanctions create uncertainty about prices as the European Union finds new supplies of diesel from the U.S., Middle East and India.By Michael Probst / AP
Britain's Competition and Markets Authority says the deal could result in "harming U.K. gamers who cannot afford expensive consoles."By Swayne B. Hall / AP
Santos' presence at the center aisle to see and be seen during President Biden's State of the Union address was met with stern criticism from Romney.By Patrick Semansky / AP
When factoring in delivery costs, roses can now cost over $100. But other options are affordable and just as sweet for Valentine's Day celebrations.By Christopher Furlong / Getty Images