A court ruling in the United Kingdom topples a pillar of the so-called gig economy: Uber's approach to employment.
"Uber suffered another setback in its biggest market outside the United States on Friday when an employment tribunal in London rejected the ride-hailing company’s argument that its drivers are self-employed," reports Prashant S. Rao.
The court decision, which affirmed a ruling last year, requires Uber "to ensure that its drivers in Britain receive a minimum wage and paid time off." The ability to pay its driver as "independent contractors" is central to Uber's business model. According to Rao, London is a crucial theater for Uber's plans for global expansion.
The court ruling is the second high-profile setback for Uber in London in recent months. Transport for London repealed the company's operating license in September.
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