Uber To Launch Uber Works, A Supply Of On-demand Contractors

It is likely that Uber is getting deeper into the labor market.

Uber is reported to be piloting its business model expansion which is going further than just on-demand bikes, scooters and cars for hire.  The Financial Times said that the company has been testing Uber Works, a program to supply on-demand workers with temporary contracts for events, such as security guards and waiters.

For the last few months, Uber is said to have been working on this project in Chicago, the program was previously experimented in L.A, reported the Financial Times. The project is said to run as its own venture, which is like Uber Eats – a food delivery service by Uber and Uber Advance Technologies Group – its business on self-driving cars.

The information is revealed because Uber is preparing for an official public offer which may take place in 2019. Although Uber is the highest-valued private company in the world, it hasn’t made profits. The company is now under pressure from its shareholders to show its ability to have a more flexible and broader business model.

The ride-hailing business of Uber is dependent on gig workers, who work as its drivers. However, things haven’t been going well as hundreds of drivers sued the company because they want Uber to sort them as employees instead of independent contractors.

The drivers complain that this classification saves Uber from paying expenses such as insurance, overtime and employees benefits. They often show their protest against the company, requesting for higher wages to help them to shoulder the costs. If the up-coming Uber Works also relies on the current model, it may get in the same trouble.

Uber refused to give comments on Uber Work.