Uber Warns Against Driver Employments Rights Court Battle Amidst Revenue Rise


Uber was able to drive the revenue of the company up by 61 percent during the previous year, however, it issued a warning that an ongoing court battle over the employment status of its drivers could have a negative effect on its future finances.

The private hire company claims that its drivers are considered to be self-employed. It is fighting against an Employment Appeal Tribunal decision that its drivers should be classed as workers who have minimum wage rights.

The revenue of the company in the United Kingdom rose by 61 percent to £59.5 million in 2017 from £36.9 million in 2016, despite the firm facing legal and regulatory battles across the country.

Accounts for its UK business revealed that its Pre-tax profits also increased by 53 percent to £4.6 million.

Last year, the TfL refused to renew the licence of Uber to operate in the city on the grounds of passenger safety, however, the ruling was overturned last June.

It was also affected by suspensions in other cities, including Sheffield.

In the accounts of the company, it warned that a number of potential changes to the industry could have a “negative effect” on the future financial position and cash flows of the firm.

It said that it was “exposed” to legal and regulatory risks as well as claims and litigation that are related to the classification of Uber of drivers as independent contractors.

The firm added that its business model was also under threat from the “interpretation and enforcement” of the existing regulations.

A spokesperson for Uber stated: “We continue to invest in expanding across the UK with more than five million riders and 60,000 licensed drivers now using our app.”

He added: “Over the last year we’ve introduced a number of improvements for both passengers and drivers, from 24/7 telephone support to free sickness, injury, maternity and paternity protections.”