You're probably guilty of calling an Uber. I know I am; having spent the summer in London, one of the most expensive cities in the world, I was always more inclined to pay for an Uber that would be around 20 U.S. dollars versus a Black Cab that would be nearly $50. And why wouldn't you want to choose Uber? Not only is it affordable, but it's quick, simple, and very available, now being offered in 60 countries, according to the company's website. But it's not only attractive to customers. Drivers get to choose their own hours, drive their own cars, and are their own boss. Sounds perfect at the surface level. Unfortunately, there has been a lot of controversy with labor forces in the treatment of Uber drivers that could lead to it losing its high status as a business and possibly fall apart in the future.
In May, three drivers from San Fransisco sued the company, fed up with having to pay their own driving expenses. However, because the drivers are classified as independent contractors and not direct employees for the company, it gets messy in remodeling the status of the drivers, because they are all unique in their employment.
The argument of the drivers' has made its way into the 2016 presidential debates, with Democratic candidate Hillary Clinton giving her opinion on the issue. Clinton acknowledges and supports the rise in "on-demand" business like Uber and food delivery service GrubHub, and was quoted saying that "...we have to resolve these questions while embracing the promise and potential of these new technologies and without stifling innovation or limiting the ability of working moms and veterans and young people to get ahead." She does mention that these type of companies can exploit their employees, as Uber has been accused of doing, and does not condone the pay inequality in their employment.
Ironically, as the debate between Clinton and Uber has increased in exposure, and the lawsuit has made national headlines, the company still continues to grow in business—it currently stands as the highest grossing start-up company in the U.S., valued at $41.2 billion.
Because of the current status of the on-demand firm, it is hard to conclude what Uber's fate will be. If drivers will become paid and recognized as employees, it could mean higher fares for rides, which could decrease in its popularity with low-income and younger users, who primarily seem to be their biggest consumers. For now, it seems that it will remain as is, since it is difficult for the company to redefine the Uber driver career, because they vary across the spectrum.
"We will likely still appeal because partners use Uber on their own terms, as there really is no typical driver," states Abby Horrigan, the Managing Counsel for Employment, on a news post on Uber's website. "Most drivers who use the Uber app already have full-time careers or part-time jobs. Many are students or retirees. About half of drivers in the U.S. work less than 10 hours per week."
In short-term, it appears that Uber will remain as is. Nevertheless, it will continue to face legal issues and unsatisfied employers. So enjoy it now while you still can, folks.
