Price increases for Uber in the EU: reasons and consequences
American company Uber Technologies, which provides taxi and food delivery services, is considering the possibility of raising prices by 40% if a new directive from the European Union regarding the status of self-employed individuals is approved.
This was reported by the Financial Times.
According to the proposed law, taxi drivers and couriers will be considered employees and will have the labour rights and benefits: a guaranteed minimum wage and the ability to take leave for childcare.
Annabel Diaz, the head of Uber's European division, stated that in addition to increasing prices for end consumers, the adoption of the new legislation will lead to a reduction in the number of Uber drivers and couriers by 50-70%. Furthermore, this may result in Uber ceasing operations in many EU cities.
The terms of employment for drivers and couriers will change: they will be required to accept orders without the ability to refuse and adhere to a set work schedule. In addition, they will be prohibited from working simultaneously with other similar services.
Uber has already called on lawmakers to develop additional rules that would allow for retaining some of the advantages of flexible work schedules for self-employed individuals. However, the official position of the EU remains unchanged.
"If the platform effectively acts as an employer, then people working on that platform should have the same rights and social protection as regular employees," emphasised EU Commissioner for Employment and Social Rights, Nicolas Schmit.