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Uber's paradox: Gig work app traps and frees its drivers | Uber's paradox: Gig work app traps and frees its drivers |
(about 11 hours later) | |
On 24 November, after a nervous wait, Uber will learn whether its licence to operate in London is to be renewed. | On 24 November, after a nervous wait, Uber will learn whether its licence to operate in London is to be renewed. |
The impending decision has revived debate over whether the data-driven basis for its business model and the "gig economy" jobs it creates are fair. | The impending decision has revived debate over whether the data-driven basis for its business model and the "gig economy" jobs it creates are fair. |
A wave of platforms has followed, offering new ways to buy and sell, to rent from and temporarily hire others. | A wave of platforms has followed, offering new ways to buy and sell, to rent from and temporarily hire others. |
Rather than salaried employees, independent contractors are paid by consumers for a specific job - a "gig". | Rather than salaried employees, independent contractors are paid by consumers for a specific job - a "gig". |
The platforms in the middle argue they do not employ staff but simply connect customers with people seeking to make money. | The platforms in the middle argue they do not employ staff but simply connect customers with people seeking to make money. |
Research by the Trades Union Congress (TUC) estimates that one in 10 workers in the UK now regularly does "platform work". | Research by the Trades Union Congress (TUC) estimates that one in 10 workers in the UK now regularly does "platform work". |
No company is more symbolic of this shift than Uber itself. | No company is more symbolic of this shift than Uber itself. |
As a consequence, it has become a lightning rod for arguments about what gig work really represents. | As a consequence, it has become a lightning rod for arguments about what gig work really represents. |
Does it usher in new, flexible, liberating ways to work, or is it the means for a kind of arms-length control that undermines basic rights? | Does it usher in new, flexible, liberating ways to work, or is it the means for a kind of arms-length control that undermines basic rights? |
Abdura Hadi, an Uber driver who has worked on the streets of London for five years, has noticed a change. | Abdura Hadi, an Uber driver who has worked on the streets of London for five years, has noticed a change. |
"On average, I used to work six-to-eight hours, six days a week to provide for my family" he told me. Now, he adds: "It's 10-to-12 hours." | "On average, I used to work six-to-eight hours, six days a week to provide for my family" he told me. Now, he adds: "It's 10-to-12 hours." |
He's noticed that over the period, the number of Uber drivers has rapidly increased, while the number of pick-up jobs has not kept up. | He's noticed that over the period, the number of Uber drivers has rapidly increased, while the number of pick-up jobs has not kept up. |
Increased competition has made a particular part of Uber's platform critical to Mr Hadi and his fellow drivers' earning power - the software that determines who gets each ride. | Increased competition has made a particular part of Uber's platform critical to Mr Hadi and his fellow drivers' earning power - the software that determines who gets each ride. |
However, none of them knows how it works. | However, none of them knows how it works. |
"My family depends on the algorithm," he explains. | "My family depends on the algorithm," he explains. |
"Sometimes it's scary, but if it was fair, it would be OK." | "Sometimes it's scary, but if it was fair, it would be OK." |
Minimum wage | Minimum wage |
At the heart of the controversy around Uber is that the disruption it has brought isn't just economic, but also legal. | At the heart of the controversy around Uber is that the disruption it has brought isn't just economic, but also legal. |
Definitions that were once reasonably clear in the workplace have become muddied. | Definitions that were once reasonably clear in the workplace have become muddied. |
The question of whether Uber drivers are actually employees is currently making its way through the British courts. | The question of whether Uber drivers are actually employees is currently making its way through the British courts. |
Even one of the most basic facts of any job has become disputed: how much Uber drivers actually earn. | Even one of the most basic facts of any job has become disputed: how much Uber drivers actually earn. |
"It's a fact that drivers are working on less than minimum wage," claims Mr Hadi. | "It's a fact that drivers are working on less than minimum wage," claims Mr Hadi. |
Yet a recent study co-authored by researchers at Oxford University and Uber, based on administrative data from the company, reported that the median London driver earns about £11 per hour spent logged into the app. | Yet a recent study co-authored by researchers at Oxford University and Uber, based on administrative data from the company, reported that the median London driver earns about £11 per hour spent logged into the app. |
That is just above the London Living Wage. | That is just above the London Living Wage. |
The study included vehicle operation costs and time spent waiting between rides while logged in. | The study included vehicle operation costs and time spent waiting between rides while logged in. |
Data v anecdotes | Data v anecdotes |
Ken Jacobs, an academic at University of California, Berkeley, who has studied hidden costs that Uber drivers and other gig workers face, refers to them as the five "major loopholes". | Ken Jacobs, an academic at University of California, Berkeley, who has studied hidden costs that Uber drivers and other gig workers face, refers to them as the five "major loopholes". |
They include: | They include: |
"They tend to way underestimate the actual expenses a driver incurs," he said. | "They tend to way underestimate the actual expenses a driver incurs," he said. |
Meera Joshi, the former head of the New York Taxi and Limousine Commission, the regulator responsible for services like Uber across the city, says data is key. | Meera Joshi, the former head of the New York Taxi and Limousine Commission, the regulator responsible for services like Uber across the city, says data is key. |
"Without data you only have anecdotes," she told me. | "Without data you only have anecdotes," she told me. |
"You have stories from drivers about low wages, but you have no way to really quantify that." | "You have stories from drivers about low wages, but you have no way to really quantify that." |
In perhaps the first move of its kind, Ms Joshi's commission forced Uber to hand over data about its drivers operating in New York. | In perhaps the first move of its kind, Ms Joshi's commission forced Uber to hand over data about its drivers operating in New York. |
"What we found out was that conditions were worse than what was described to us by drivers," she said. | "What we found out was that conditions were worse than what was described to us by drivers," she said. |
"Ninety-six per cent of drivers were making less than the city's minimum wage. Most of the drivers were providing the main source of income for their families." | "Ninety-six per cent of drivers were making less than the city's minimum wage. Most of the drivers were providing the main source of income for their families." |
After the watchdog implemented minimum-wage protections to cover the 80,000 New York drivers involved, an additional $225m (£172m) per month went "back into the pockets of drivers", said Ms Joshi. | After the watchdog implemented minimum-wage protections to cover the 80,000 New York drivers involved, an additional $225m (£172m) per month went "back into the pockets of drivers", said Ms Joshi. |
As a result, the cash flowed into local neighbourhoods rather than back to San Francisco-based Uber. | As a result, the cash flowed into local neighbourhoods rather than back to San Francisco-based Uber. |
'Prison and liberator' | 'Prison and liberator' |
The Oxford paper also claimed that Uber drivers had higher levels of life satisfaction than other workers, but also higher anxiety levels. | The Oxford paper also claimed that Uber drivers had higher levels of life satisfaction than other workers, but also higher anxiety levels. |
"That's the paradox of Uber," commented Duncan McCann, a researcher at the New Economics Foundation. | "That's the paradox of Uber," commented Duncan McCann, a researcher at the New Economics Foundation. |
"It is both a prison and a liberator. You can just switch on the app and start working, but if you have a family to support, it's obviously less flexible. You need to match peaks of demand: rush hours and weekends." | "It is both a prison and a liberator. You can just switch on the app and start working, but if you have a family to support, it's obviously less flexible. You need to match peaks of demand: rush hours and weekends." |
And Uber is just the "tip of the iceberg", he added. | And Uber is just the "tip of the iceberg", he added. |
"The majority of gig-economy workers are women, doing care, cleaning. | "The majority of gig-economy workers are women, doing care, cleaning. |
"Under the water level, you have platforms openly advertising rates beneath minimum wage." | "Under the water level, you have platforms openly advertising rates beneath minimum wage." |
Uber has taken steps to benefit the drivers ahead of the licensing deadline. For example, last week it added a button to their app to let them report racism or other discriminatory behaviour from passengers, who it promises to kick off its platform if the complaint is upheld. | Uber has taken steps to benefit the drivers ahead of the licensing deadline. For example, last week it added a button to their app to let them report racism or other discriminatory behaviour from passengers, who it promises to kick off its platform if the complaint is upheld. |
"Drivers are at the heart of our service - we can't succeed without them - and thousands of people come into work at Uber every day focused on how to make their experience better, on and off the road," it said in a statement. | |
"Whether it's being able to track your earnings or stronger insurance protections, we'll continue working to improve the experience for and with drivers." | |
But in many ways, the gig economy simply reintroduces very old issues of conditions and rights in the workplace in new ways. | But in many ways, the gig economy simply reintroduces very old issues of conditions and rights in the workplace in new ways. |
Previous decades saw the struggles of employees to have their rights recognised; now the struggle is one of workers to be recognised as employees at all. | Previous decades saw the struggles of employees to have their rights recognised; now the struggle is one of workers to be recognised as employees at all. |
Once the focus was on the power of the owners of the means of production; now it is on the owners of the means to find work via the net. | Once the focus was on the power of the owners of the means of production; now it is on the owners of the means to find work via the net. |
The new battleground is not over who controls the shop floor, but who controls the data involved. Who has it, and what it reveals. | The new battleground is not over who controls the shop floor, but who controls the data involved. Who has it, and what it reveals. |
Whatever happens on 24 November, the wider debate will continue for a long time yet. | Whatever happens on 24 November, the wider debate will continue for a long time yet. |
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