Beautiful Virgin Islands

Saturday, Nov 29, 2025

What is the gig economy and how will it be affected by Uber's announcement?

What is the gig economy and how will it be affected by Uber's announcement?

The taxi app has been forced to upgrade conditions after a lengthy legal battle, but what might it mean for other workers?

Uber's announcement of basic employment rights for its drivers comes after a long-running court battle that could force a shake-up in the so-called gig economy.

What is the gig economy?


The term describes a way of working where work is assigned on a short-term or job-by-job basis via platforms such as Uber, a taxi app, Deliveroo, a takeaway food service, or courier companies such as Hermes or DPD.

Other smaller platforms connect people with opportunities from office and administration work to teaching, gardening and domestic jobs.

Some use the work to top up their main salary or as a stop-gap, while for others it is the main source of income.

Until now, employers have been able to save on costs because those workers are classed as self-employed contractors rather than employees.

That meant they were not seen to be entitled to paid sick leave or holiday, or pensions, and - the companies argue - gave those contractors the flexibility to pick and choose when and how much they want to work.

Data on the UK gig economy is scarce, but the Chartered Institute for Personnel and Development (CIPD) estimated in 2017 that 1.3 million people, or 4% of all those in employment, worked in it.

Delivery firms such as DPD also use self-employed workers


What's the problem?


Uber's argument about the independence of drivers was not accepted by the Supreme Court.

It pointed out that the company sets fares and other terms and drivers have no say in them, and they can be penalised for not taking enough jobs or if they score poorly on a customer rating system.

The judges concluded that drivers are "in a position of subordination and dependency to Uber", with "little or no ability to improve their position through professional or entrepreneurial skills".

Unions say gig economy workers should be entitled to the same benefits and protections as everyone else.

While Uber says it will now do the right thing on worker benefits, for its private hire drivers at least, critics say that is only because they have been dragged "kicking and screaming" to do so.

The Supreme Court rejected Uber's arguments


Does this mean gig economy workers now have the same rights as everyone else?


No. The court ruling at the centre of all the latest developments classed the Uber drivers who brought the case as "workers".

That's a halfway house somewhere between self-employed and employee status.

It means that they are entitled to rights such as minimum wages and paid holiday - and in some cases statutory sick pay and paid parental leave.

But they usually miss out on others, such as minimum notice periods if they are sacked, time off for emergencies and statutory redundancy pay.

Courier firm DPD has already, in 2018, offered its drivers the chance to upgrade their employment protections to those of a "worker".

People classed as workers are entitled to minimum wages


What are the wider implications?

Susannah Streeter, an analyst at Hargreaves Lansdown, thinks Uber's move will "reverberate through the entire gig economy".

But Uber argues that it is specific to the private hire vehicle part of its business - and not, say, food delivery operations such as its own Uber Eats brand or rival Deliveroo.

It has also caused disquiet over the issue of what time its cab drivers should be paid for.

The Supreme Court says they should be entitled to wages for any period when they are logged on to the Uber app, but the company says they will only be paid from the time they accept a trip request.

Lawyers for the drivers in the case, James Farrar and Yaseen Aslam, said they were concerned that Uber was seeking to "cherry-pick" aspects of the judgment and would be poring over the detail.

Mr Farrar and Mr Aslam said Uber's move would leave Uber drivers "short-changed to the tune of 40-50%"

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
×