Uber Raises Alarm Over EU Gig Work Plan: Impending Threat to Drivers in Countless Cities

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A top Uber executive has issued a warning regarding the proposed designation of gig workers as de facto employees by Brussels. The executive predicts that if these proposals are enacted, Uber’s ride-hailing service will be forced to shut down in hundreds of cities across the European Union (EU) and raise prices by up to 40%.

Anabel Díaz, head of Uber’s mobility division in Europe, is urging lawmakers to approve rules that preserve the flexibility desired by self-employed workers. She stated that if Uber is forced to reclassify drivers and couriers across the EU, there could be a 50-70% reduction in work opportunities. This would result in Uber ceasing operations in hundreds of the 3,000 cities it currently serves in the EU.

Díaz added that a law granting full working rights to drivers would lead to increased prices for consumers. According to her, prices could rise by as much as 40% in major cities, resulting in significantly longer wait times for riders due to fewer available drivers.

These comments come at a time when the EU’s main institutions are engaged in negotiations over the final text of the Platform Work Directive. This new law aims to improve economic conditions for gig workers in the EU by granting them the rights of full-time workers. Currently, the majority of platform workers in Europe are presumed to be self-employed and lack labor rights and benefits.

In an interview with the Financial Times, Díaz expressed concerns about the consequences of the proposed EU legislation. She cited examples from Spain and Geneva, where similar rulings classifying drivers as employees resulted in significant job losses. Díaz emphasized that if Uber were to bear the costs of employment, the company would need to consolidate hours among fewer workers. Drivers and couriers would be required to apply for open roles, adhere to specific shifts, accept all received trips, and agree not to work with other apps.

However, Díaz denies that changes in the law would negatively impact Uber’s profitability in Europe. She states that Uber has already demonstrated its ability to grow in Germany and Spain using a third-party employment model. In Germany, Uber contracts fleet management companies to employ drivers, enabling the company to operate under local rules. This has resulted in higher prices and availability limited to major cities with consistent demand. In the UK, Uber operates under a different model where drivers are designated as “workers,” granting them benefits like holiday pay and sick leave, while falling short of full employee status.

Despite warnings from Uber and its competitors, such as Bolt, regarding the proposed platform worker rules, EU officials have pushed back against what is perceived as lobbying tactics from the tech industry. Nicolas Schmit, EU commissioner for jobs and social rights, stated during the launch of the EU’s proposal that clear criteria need to be established to determine if platforms are employers and whether workers should be entitled to the same rights and protection as those in traditional employment.