Uber CEO calls for ‘benefits funds’ for gig workers

Uber could again out of merger talks with Grubhub as a result of antitrust concern, studies say.

Angela Lang/CNET

Uber CEO Dara Khosrowshahi on Monday mentioned its drivers ought to get the “better of each worlds” — advantages and work flexibility. In an op-ed published in The New York Times, Khosrowshahi proposed that lawmakers require gig economic system corporations to create “advantages funds” that will “give employees money that they’ll use for the advantages they need, like medical insurance or paid day without work.” 

“Our present employment system is outdated and unfair. It forces each employee to decide on between being an worker with extra advantages however much less flexibility, or an impartial contractor with extra flexibility however virtually no security web,” wrote Khosrowshahi. “It is time to transfer past this false alternative.” 

The op-ed comes as Uber and rival ride-hailing firm Lyft face a possible injunction in California that will drive them to reclassify their drivers as staff. At the moment, drivers are categorised as impartial contractors, which implies they pay for their very own bills, reminiscent of gasoline, automotive upkeep and insurance coverage. Drivers additionally haven’t got advantages like medical insurance and sick go away. 

In a lawsuit brought against the companies in May, California Legal professional Basic Xavier Becerra alleged that Uber and Lyft have “exploited tons of of 1000’s of California employees” by classifying their drivers as impartial contractors reasonably than staff — thus violating California law AB 5.  

Uber additionally laid out its proposal in a blog post and doc aimed toward coverage makers and different gig economic system corporations. Along with creating advantages funds, Khosrowshahi mentioned lawmakers ought to require gig corporations to supply medical protection for accidents that occur on the job. The Uber CEO mentioned the corporate can even take some steps by itself, together with being extra clear concerning the cash that drivers can earn and surveying all its drivers about “what’s working and what’s not.”

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Carrie Mihalcik