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Uber says its business is similar to a minicab firm Uber says its business is similar to a minicab firm
(35 minutes later)
The ride-hailing app Uber operates an agency business similar to systems used by traditional minicab firms, a London employment appeals tribunal has been told. The ride-hailing company Uber operates an agency business similar to systems used by traditional minicab firms, a London employment appeals tribunal has been told.
Opening the company’s appeal against a ruling that its drivers should be treated as workers, lawyers for Uber argued that the US-owned firm was not introducing new employment practices.Opening the company’s appeal against a ruling that its drivers should be treated as workers, lawyers for Uber argued that the US-owned firm was not introducing new employment practices.
Dinah Rose QC, for Uber, said: “The services of minicab firms are closely analogous to the services offered by Uber BV.Dinah Rose QC, for Uber, said: “The services of minicab firms are closely analogous to the services offered by Uber BV.
“The agency model has been operated for many years. It’s in no way novel. It’s been recognised by case law.”“The agency model has been operated for many years. It’s in no way novel. It’s been recognised by case law.”
The claim that drivers should be entitled to worker status – rather than being treated as self-employed – was originally brought by two Uber drivers, James Farrar and Yaseen Aslam.The claim that drivers should be entitled to worker status – rather than being treated as self-employed – was originally brought by two Uber drivers, James Farrar and Yaseen Aslam.
Workers receive paid annual leave, the national minimum wage and rest breaks. The decision last week by Transport for London not to renew Uber’s licence is not expected to affect the legal arguments in this case.Workers receive paid annual leave, the national minimum wage and rest breaks. The decision last week by Transport for London not to renew Uber’s licence is not expected to affect the legal arguments in this case.
Addressing a protest against the gig economy before the hearing, Aslam said: “In the case of Uber, drivers are stuck into working due to desperation, either by costly finance, insurance, licence fees and the list goes on.Addressing a protest against the gig economy before the hearing, Aslam said: “In the case of Uber, drivers are stuck into working due to desperation, either by costly finance, insurance, licence fees and the list goes on.
“All Uber want to do is flood the market with drivers, with no responsibility nor liability – keep reducing fares to attract more customers, while drivers carry all the risks,” Aslam said. “All Uber want to do is flood the market with drivers, with no responsibility or liability – keep reducing fares to attract more customers, while drivers carry all the risks,” Aslam said.
“These drivers are hard-working people and in their job face many struggles. Drivers sleeping in their cars, drivers working 80-90 hours a week and still not making the minimum wage.”“These drivers are hard-working people and in their job face many struggles. Drivers sleeping in their cars, drivers working 80-90 hours a week and still not making the minimum wage.”
Rachel Mathieson, a solicitor with Bates Wells Braithwaite which is representing the drivers, said: “People misinterpret this case as creating something new. This is applying the established law to new business practices.”Rachel Mathieson, a solicitor with Bates Wells Braithwaite which is representing the drivers, said: “People misinterpret this case as creating something new. This is applying the established law to new business practices.”
A spokesperson for Uber said: “Almost all taxi and private hire drivers have been self-employed for decades before our app existed. With Uber, drivers have more control and are totally free to choose if, when and where they drive with no shifts or minimum hours. The overwhelming majority of drivers say they want to keep the freedom of being their own boss.”A spokesperson for Uber said: “Almost all taxi and private hire drivers have been self-employed for decades before our app existed. With Uber, drivers have more control and are totally free to choose if, when and where they drive with no shifts or minimum hours. The overwhelming majority of drivers say they want to keep the freedom of being their own boss.”
Rose said the practice of running an agency for self-employed drivers was legally identical to traditional practices. “It doesn’t make any difference whether it’s 100 drivers for a minicab firm or 40,000 on an app like Uber.”Rose said the practice of running an agency for self-employed drivers was legally identical to traditional practices. “It doesn’t make any difference whether it’s 100 drivers for a minicab firm or 40,000 on an app like Uber.”
“It’s just that advances in technology make large scale business operations possible … An individual private car hire driver is running a business on their own account. In all of these [other precedent cases], it’s never disputed that a minicab firm is operating as an agent for the driver.”“It’s just that advances in technology make large scale business operations possible … An individual private car hire driver is running a business on their own account. In all of these [other precedent cases], it’s never disputed that a minicab firm is operating as an agent for the driver.”
Rose added: “ There are two ways of looking at a minicab company. You can look at it as a company supplying driving services or as a connection point between two groups of people.Rose added: “ There are two ways of looking at a minicab company. You can look at it as a company supplying driving services or as a connection point between two groups of people.
“Effectively the minicab company is forming a connection between a group of people, drivers, who have cats, and s group of people, passengers, who are looking for drivers.“Effectively the minicab company is forming a connection between a group of people, drivers, who have cats, and s group of people, passengers, who are looking for drivers.
“Any private car hire driver who wants to work in London has to do it through the agency of a minicab company. Drivers are prohibited from plying for hire or picking up customers from taxi ranks.”“Any private car hire driver who wants to work in London has to do it through the agency of a minicab company. Drivers are prohibited from plying for hire or picking up customers from taxi ranks.”
The internet, she said, is “really good at bringing together people who want to sell services and those who want to buy them.The internet, she said, is “really good at bringing together people who want to sell services and those who want to buy them.
“That business model is highly disruptive because of the scale at which it operates not because the relationship between the driver and company is novel.”“That business model is highly disruptive because of the scale at which it operates not because the relationship between the driver and company is novel.”
The hearing at the central London employment appeal tribunal is scheduled to last two days. The decision may be reserved.The hearing at the central London employment appeal tribunal is scheduled to last two days. The decision may be reserved.