Study Material | Test Series | Crash Course
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
Current Affairs Crash Course Download Player Download Android App
Q. Issue of uber driver: Comment on recent judgement in United Kingdom on the issue of uber drivers.
Nov 04, 2016 Related to : GS Paper-3

Ans :

Introduction-

Recently an employment tribunal in London has ruled that drivers of Uber companies are “workers’’ and not “self employed” and therefore they are entitled to a minimum wage and paid leave. This ruling has implications not only for UK’s 40,000 Uber drivers but for others associated with the gig economy (Environment in which temporary positions are common) in Britain and beyond.

Analysis-

  • App based business models like Uber are acts as platform that connects those who want transportation services to those who provide them.
  • But according to recent ruling, Uber sells rides, not software, despite its legal and corporate structure and licensing agreements attempting to suggest otherwise. 
  • The gig economy is driven by algorithms and technology. It extends beyond ride-sharing applications to food delivery, car rental and hosting services. 
  • Earning money as an independent contractor is not new, but the changing nature and growth of such business models and their inextricable linkages to technology, often via a smartphone app, is making it hard for regulators to keep up. 
  • Even from the consumer’s perspective, app-based transportation services have been beneficial and increased clarity on pricing, speedy redress of complaints, decreased waiting times via efficient driver-passenger match algorithms, and so on. 
  • The business model has brought more drivers into the workforce by offering flexible hours and gigs to anyone who meets certain criteria. From the service provider’s perspective, the ability to work flexible hours can be a way to earn supplementary income.
  • But in ruling focussed on legal and technological instruments and argued that it cannot circumvent basic work-related rights. Thus it has begun the overdue process of determining the producer’s obligations.   

Conclusion-

The recent ruling has far reaching implications particularly on gig economy, which is growing economy. There is need of companies should be more transparent about their policies and practices so that regulation can be crafted in the first place And these regulation should be streamlined, responsive to changing ground realities, and easily understandable by users.  Such steps will helps in protecting the interest of all stakeholders. 


Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.