Uber’s Uber Effect on the Gig Economy

The gig economy comprises a major segment of the labor force in the United States, and its size is rapidly growing. According to a study by the Bookings Institution, “over the past 20 years, the number of gig economy workers…has increased by about 27 percent more than payroll employees,” and even up to 44 percent more in the industry of ground transportation. One company is leading the charge in this specific industry, and has come to be closely associated with the term “gig economy.” This company, is Uber.

Companies associated with the Gig Economy.

Uber has been the model for the gig economy and “for-hire” workers, with its platform offering drivers the flexibility to work whenever they want, wherever they want. The ability to set one’s own hours is a reason why many are attracted to working for Uber, especially part time in conjunction with another job(s). However, recently, Uber drivers are pushing back against Uber and demanding they receive benefits typically given to employed workers. They desire to be given the status of employees so that they may receive unemployment benefits, be paid a minimum wage, and other benefits of being considered an employee. However, are Uber drivers correct in saying they deserve to be treated as regular employees?

Personally, I don’t think that Uber drivers should be given the status of being an employee. When an individual decides to sign up to become a driver for Uber, they do so fully knowing (or should know) that this job is a for-hire employment opportunity, not a regular 9-5 job. As such, I think that they knew what they were getting themselves into and accepted the notion that they were part of the gig economy. I don’t think it’s fair that after being employed as a for-hire worker, Uber drivers are demanding more and demanding their employment status be changed.

Uber advertises itself as “Work on Demand”

If Uber indeed changes the classification of its employees from being for-hire workers to being actual employees, or the court system creates a law/precedent to allow Uber drivers to be considered employees rather than independent contractors, this would open up a whole new can of worms. First and foremost, if Uber, a large multi-national corporation in the gig economy, allows its workers to reap employment benefits, what’s to stop workers for other for-hire companies from demanding the same? The most immediate companies that come to mind include Lyft, which is a direct competitor to Uber in most large markets. If Uber employees successfully change their employment status, what’s to stop Lyft employees from staging a similar uprising?

There are plenty of independent contractor workers in other industries that are content with their employment status and aren’t demanding employment benefits, so why are Uber drivers any different? There are construction workers who meander around local hardware stores such as Home Depot and Lowes, waiting around for someone to come and request their labor services, but they don’t demand employment benefits. Babysitters and other caretakers are the same way; they work for-hire but you don’t see them demanding employment benefits. Some may make the argument that Uber drivers are different from those other industries because they are connected via the Uber platform, but platforms exist where one can hire a babysitter for-hire through a mobile app or website, so they are similar to Uber in that sense.

Uber was created as a for-hire service; it’s very purpose was to allow people the opportunity to work as a driver in their free time if they wanted to make some spare money. I don’t think Uber intended that its platform be used for individuals to work full-time, but rather as a supplement to other jobs. As such, I don’t believe their workers have the right to push back and demand employee classification and employment benefits just because they chose to make this their full-time work. They knew exactly what this work was meant to be, and shouldn’t be allowed extra benefits because they are abusing the platform for what its intended use was for. It’ll be interesting to see what the courts decide in the near future, and whether Uber will give in and completely upend the model of the gig economy, or push back and keep the for-hire status-quo of independent contractors.

Uber has an influential effect on the Gig Economy

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