The cost of Uber trips in the EU will increase by 40%: all because of the new status of drivers
American taxi and food delivery company Uber Technologies may raise prices by 40% if the European Union adopts a new directive regarding the status of self-employed people, reports EPravda.
Under the bill, taxi drivers and couriers would effectively be employees and would receive the same labor rights and benefits, such as a guaranteed minimum wage and the ability to take parental leave.
The head of the specialized European division of Uber, Anabel Diaz, said that in addition to increasing prices for end consumers, the adoption of a new legislative act will also lead to the reduction of 50-70% of taxi drivers and couriers at Uber. As well as the cessation of the service in hundreds of the 3 thousand EU cities where the aggregator is currently represented.
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At the same time, the employment conditions of drivers and couriers will become stronger: they will have to regularly accept any orders without the opportunity to choose, and also begin and end their working day at a clearly established time. They will also no longer be able to work in parallel with other similar services.
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Uber has already called on legislators to introduce additional rules that would allow the self-employed to retain the benefits of flexible working, but the EU's official position remains unchanged.
“If a platform is a de facto employer, the people employed by it should have the same rights and enjoy the same protections as full-time employees,” said EU Commissioner for Employment and Social Rights Nicholas Schmidt.
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