70 Thousand Of Uber's Online Drivers Appointed As Employees, When Will Gojek-Grab?

Uber hires 70 thousand drivers to become employees (Geek Wire)

JAKARTA - Uber, an online transportation service, has appointed 70 thousand drivers in the UK to become employees and can get monthly salaries, severance pay, and retirement salaries.

The appointment was based on a decision by the UK Supreme Court which said the driver was an independent worker and not outsource.

The decision received a response from Bank of America which said that Uber's actions could cost the company around 500 million US dollars (equivalent to Rp. 7.2 trillion) as compiled from CNBC International.

Analysts argue that the hiring of drivers to permanent employees could lead to increased company spending and disrupt Uber's own prospects in Europe.

According to the LA Times report, previously Uber had worked hard by deploying lawyers around the world to stop efforts to reassess drivers to become company employees.

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Drivers Are Eligible for Protection

Uber itself revealed that this was their first agreement regarding the appointment of drivers as employees. This action was taken in response to a UK Supreme Court ruling last month which revealed that drivers have the right to be protected.

The City of London is the fifth largest market share globally. Until now, London has become Uber's most important market on the European continent. This is evident where Uber already has 45 thousand drivers, Uber users have reached 3.5 million in London. Not yet included in other major British cities.

Previously, Uber's operating license was revoked by the City of London Transport Supervisory (TfL). The license revocation was caused by security problems. Uber has recorded this experience twice in 2020.

So, can this kind of decision be implemented in Indonesia? Considering that Gojek and Grab are the biggest ride-hailing companies, especially having many partners.