Uber set aside over £430million for UK driver back-payments following workers' rights decision
Ride-hailing firm Uber have set aside over £431million ($600m) to make back-payments to drivers in the UK following the Supreme Court's workers' rights decision.
The Supreme Court’s ruling means drivers working on the Uber app will now be entitled to the same rights as employed workers, including minimum wage, holiday pay and a pension scheme.
On Wednesday, Uber released their first quarter financial results, disclosing the whopping £431million ($600) figure which they have set aside to cover back-payments to their 70,000 UK based drivers.
Figures show that the firm’s revenue was down 11% to just over £2billion ($2.9bn) compared to the same period last year based on the £431million bill they are expecting to fork out.
The firm listed it its filings as follows: 'EMEA revenue and total revenue were reduced by a $600 million accrual made for the resolution of historical claims in the UK relating to the classification of drivers.'
In the first quarter, the firm’s mobility bookings were down 38% on the previous year, with delivery bookings made through Uber Eats growing 166% compared to a year earlier.
Uber CEO, Dara Khosrowshahi, said: “Uber is starting to fire on all cylinders, as more customers are riding with us again while continuing to use our expanding delivery offerings.
”We will continue to innovate and find new ways to deepen engagement with our customers, as the only global platform that helps you go wherever you need and get whatever you want.”
Uber CFO, Nelson Chai, added: ”We outperformed both our Gross Bookings and Adjusted EBITDA outlook, with Mobility trends improving through the quarter and continued elevated growth for our delivery business, combined with disciplined operational execution.
”Uber is very well positioned to drive long-term value, with improving EBITDA performance, significant liquidity, and increasing valuable minority investments.”
