In another blow to its business, Uber found itself on the losing end of an appeal in UK. The appeal was for the court to overturn the previous decision that required the company to provide minimum wage for its drivers. The appeal was rejected by the Employment Appeal Tribunal (EAT) in London. The ride hailing company is also trying hard to keep its license for operating in London at all, in a separate case.
The decision is a set back to Uber, since providing minimum wages to drivers could cost the company more money than it usually would. The company currently pays driver based on the number of rides they do, which is possibly a cheaper proposition. This is of course not the only regulatory setbacks Uber is facing. The company is also in legal battles at other places, while it has been forced to stop doing business in Hungary and Denmark.
According to drivers, who argued at a tribunal that Uber has a lot of control over drivers involved in its on-demand service. It’s worth noting that the new decision will not be applicable to all of Uber’s drivers in Britain, but it could lead to claims from more drivers. The company will possibly challenge the decision at the Supreme Court now.