This afternoon, Uber‘s CEO Dara Khosrowshahi issued an apology amid its contract not being subject to renewal. In his open letter on Twitter, he acknowledged that his company, as part of the UK’s Gig-Economy needed to change.
“We will appeal this decision on behalf of millions of Londoners. But we do so with the knowledge that we must also change.”
The statement comes from a long line of controversy which some of its senior staff and company have been behind. But already there is momentum to change this public perception, the company currently looking for a new CEO in the UK. Rivals such as Lyft await the outcome as a possible replacement for Uber.
what is happening with the Gig-Economy?
Last week saw news from Uber and Deliveroo, the latter reporting annual profits rising 611% from last year. While an impressive percentage, a £126.8 million profit is countered with losses stood at £129.1 million. The reason for this is due to an expansion of staff as well as offices in London, requiring more investment this year.
Expansions like this reduce anxiety around disproportionate losses, enough for it to accrue $385 million in new funding. But experiences still remain quite varied from employees and users, as Deliveroo has faced scrutiny over its staffing before. Both Uber and Deliveroo are pressed over whether their staff are employees or self-employed which is yet to be decided.
Is it unravelling or reforming?
This depends on the governments approach towards the question of employment within these companies. But far from unravelling, it may be a case of reforming in tandem with wider professionalisation within the UK. However, this could also be due to a slow down of what the TUC refers to as employment ‘Casualisation‘ amid employment controversies.
The degree of reform is necessary due to the amount already lost due to self-employed status of ‘Gig-Economy’ workers.