Platform workers legislation could drive Uber out of EU cities

A senior Uber executive has said the ride-hailing company could be forced to pull out of ‘hundreds’ of European cities due to new EU gig economy legislation.

The EU Platform Workers Directive would reclassify drivers and couriers working for Uber and similar companies as employees, giving them full working rights.

Currently, the majority of platform workers in the EU are classified as self-employed, even though they have to abide by similar rules and restrictions as employed workers. The EU wants to improve working conditions for these workers, and will debate the legislation this week.

Anabel Diaz, head of Uber’s mobility division in Europe, has urged policymakers to consider the workers’ desire for flexibility.

She told the Financial Times: “If Brussels forces Uber to reclassify drivers and couriers across the EU, we could expect to see a 50-70% reduction in the number of work opportunities,” a move that would mean Uber pulling out of many European cities.

The European Commission itself estimates that the new law would force Uber to raise prices by as much as 40%, and Uber argues that this could be further exacerbated by a lack of drivers and longer waiting times.

In 2021, Spain became the first country in the EU to give gig economy workers full employee rights, but Diaz claimed such rulings had led to “devastating” job losses.

“In order to manage the costs of employment, Uber would be forced to consolidate hours across fewer workers,” she said.

“Drivers and couriers would need to apply for an open role, if one is available; show up for shifts at specific times and places; accept every trip they receive; and agree not to work on other apps.”

In the UK, a Supreme Court ruling in 2021 held that Uber drivers are “workers” rather than self-employed, which means they are entitled to basic rights such as holiday pay, rest breaks and the national minimum wage.

In Germany, Uber uses fleet management companies who directly employ their drivers so it can abide by local legislation.

The European Council announced in February 2021 it would consult over the rights of workers employed by digital platforms, and announced it was ready to start negotiations with the European Parliament on the content of the new law in June.

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