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Changes in the way Uber drivers are paid in the UK. Does it mean global changes?

Uber says it will provide its 70,000 drivers in the UK with a guaranteed minimum wage, holiday allowance and pension.

In one of my articles, I wrote about gig workers:

“XXI century. The development of the digital economy, information and communication technologies began to change the definition of “work.” Working hours, working hours, benefits are replaced by freelance and contract work.”

Meanwhile, Uber announced that drivers will earn at least the UK’s National Living Wage, paid to people age over 25, at £ 8.72 per hour.
This took place after the company lost the court battle for the status of drivers in the UK, which began in 2016.

“We will pay at least the minimum wage for people over 25 …”
“All drivers will be paid leave based on 12.07% of their earnings …”
“Drivers will be automatically enrolled in a retirement plan …”
“All drivers will be free to choose if, when and where to go.”

What does it mean:

  • Uber is not the only company operating this sharing-economy model. Therefore, other operators may also be compelled to change their remuneration policy.
  • Uber representatives say that this will not affect the prices of the services provided. However, experts’ voices on this matter do not sound so optimistic.
  • Similar rulings/regulations translating into having consumers pay the real (higher) cost for delivery have already caused a significant drop in interest in home deliveries in the Asia-Pacific region.
  • If prices for door-to-door delivery services increase, consumers will most likely turn to the Click-and-Collect model.

Of course, this is likely not the end of the gig economy, although the ruling from the British Supreme Court may become a reference point if similar battles are to take place in other European countries.



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