Uber Reaches Settlement With Drivers Over Worker Status

Harin - Dec 24, 2018

Uber has reached a settlement with its drivers who have been seeking for individual arbitration over their employment status.

It is reported that Uber is in preparation for its race to the stock market next year and it’s fixing some loose ends. Uber has reached a settlement to pay 11 cent per mile for Uber drivers (including adjoining services like Uber Eats), who have been seeking for individual arbitration over their employment status. For the settlement to go through, it is necessary for Uber drivers to drop all claims against the company.

The ride-hailing giant has declined to comment on this. Lichten & Liss-Riordan, one of the drivers representing firms, also hasn’t made any statement.

In a case happening years ago in nine states, about 160,000 Uber drivers had been trying to obtain their worker status. By doing this, they could get expense reimbursement while driving for the company, like vehicle maintenance and gasoline used.

Another complaint is about tips. Drivers claimed that the company would not grant them permission to receive or keep passengers’ tips. This happened before the company finally introduced tips in 2017, which earned drivers $600 million extra in just one year.

In order for the settlement between Uber and drivers to be finalized, documents in which drivers agree to drop all claims related to worker misclassification needed to be signed. The settle also needs to depend on whether it can get enough drivers to sign on the agreement. The minimum number of drivers has not yet been disclosed. After the settlement, drivers might have to wait approximately six months to receive their payments.

This is an important step for Uber to repair its image with the company’s current and potential drivers. Last year, the company has undergone a huge crisis involving Uber’s toxic culture and questionable management, drivers treatment and many more. The tipping was actually a part of the company’s efforts in trying to fix its image with employees, passengers and drivers.

To maintain and improve its business, it is essential for the ride-hailing giant to have a loyal as well as growing group of drivers. This settlement is a positive signal for drivers that Uber is trying to do the right thing.

However, the bargaining power still seems to be on Uber’s side. Uber is one of the biggest private technology companies in the world. The 11 cents for each mile that the company is offering its drivers for a settlement is only one-third of what drivers could receive if they continue to pursue the arbitration.