What the UK’s ruling against Uber means for the gig economy
The balance of power
In short, the Supreme Court believed the drivers were subordinate to Uber, leading to an imbalance of power. Beyond increasing the hours spent working via the platform, drivers had no means of improving their economic position through entrepreneurship – something which could reasonably be expected of an independent contractor.
The judgment was welcomed by Farrar and Aslam, whotold the BBCthey were “thrilled and relieved” by the ruling.
Farrar added: “This is a win-win for drivers, passengers, and cities. It means Uber now has the correct economic incentives not to oversupply the market with too many vehicles and too many drivers. The upshot of that oversupply has been poverty, pollution, and congestion.”
For its part, anUber spokesman said: “We respect the court’s decision which focused on a small number of drivers who used the Uber app in 2016. Since then, we have made some significant changes to our business, guided by drivers every step of the way. These include giving even more control over how they earn and providing new protections like free insurance in case of sickness or injury.
He went on: “We are committed to doing more and will now consult with every active driver across the UK to understand the changes they want to see.”
Whatever changes lie ahead, the landmark judgment is indeed a major step in tackling how vast numbers of working people are treated, with the potential to change the shape of the gig economy as we know it.
But it is worth noting that this judgment has been five years in the making.What is that compared to the speed at which online platforms like Uber can update its terms and conditions or business models?
It seems as though the law has engaged in a game of cat and mouse in attempting to hold platforms accountable for the way they treat their workforce. It may be that a future legislative response at the government level will be required to level the playing field for workers who may otherwise feel bound by the terms of their agreements.
For now, drivers have found a rare moment of certainty in the ever-changing gig economy. But while the drivers have won this battle, the question remains over who will win the war. We might be in for a bumpy ride.
This article byJessica Gracie, PhD Candidate, York Law School,University of Yorkis republished fromThe Conversationunder a Creative Commons license. Read theoriginal article.
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