An Uber boss has issued a stark warning that the EU’s proposal to classify gig workers as de facto employees could see the ride sharing firm shut down operations across the bloc and see price hikes of up to 40% in some European cities, reports The Financial Times. Anabel Díaz, head of Uber’s European mobility division, said the plans could result in the ride-hailing giant stalling to a halt in ‘hundreds’ of European cities and spiking prices by up to 40% in others. Her warning comes in the week that the EU’s main institutions, the European Commission, the parliament and the Council of Ministers, have kick-started negotiations over the final text of the new law, which is aimed at improving economic conditions for gig workers in the bloc.

“If Brussels forces Uber to reclassify drivers and couriers across the EU, we could expect to see a 50-70% reduction in the number of work opportunities,” Díaz said. “This would cause Uber to cease operating in ‘hundreds’ of the 3,000 cities across the EU that it serves today.”

The law is likely to represent a significant change from the status quo in Europe, where the majority of platform workers are presumed to be self-employed, meaning they lack access to labour rights and benefits, such as paternity leave and a minimum salary.

At the launch of the EU’s proposal, Nicolas Schmit, EU commissioner for jobs and social rights, said, “This is about establishing clear criteria and looking at the facts. If the platform is in fact an employer, then the people working for it are entitled to the same rights and protection as workers in the ‘offline’ world.”
Díaz said Uber is ‘sincerely committed to the European social model’ but warned that similar rulings classifying drivers as employees in Spain and Geneva have led to ‘devastating’ job losses. “In order to manage the costs of employment, Uber would be forced to consolidate hours across fewer workers,” she said. “Drivers and couriers would need to apply for an open role, if one is available; show up for shifts at specific times and places; accept every trip they receive; and agree not to work on other apps.”

In the UK, following a high-profile court ruling in 2021, Uber operates under a different model: its drivers are designated as ‘workers’, entitling them to benefits such as holiday pay and sick leave, while falling short of full employee status.