The EU Wants to Fix Gig Work. Uber Has Its Own Ideas

A small group of protesters stand on the side of a roundabout opposite Brussels’ oak-framed Europa building, which is glowing in the dark. Despite the heavy rain, the group is here to direct their anger at the politicians, who are inside, deciding the future of Europe’s gig economy. In case their chants can’t be heard over the noise of passing traffic, the demonstrators have also printed their message onto a banner. It reads: “Don’t Let Uber Make the Law.”

Among the crowd are Camille Peeters, Marcus Haunold, and Felipe Corredor. The three men work for different companies and live in different countries—in Belgium, Austria, and Spain, respectively. But their experiences working as couriers for some of Europe’s most popular food delivery platforms have led them to the same conclusion. Platforms are taking advantage of their workers, they claim, and now those same companies are attempting to sabotage new rules that were supposed to fix the gig economy’s problems.

“Something has to change, because the current situation is really bad for most platform workers,” says Haunold, who has spent the past five years working for Foodora in Vienna, a food delivery app owned by Berlin-based Delivery Hero. As a “free employee,” a special category of worker in Austria, he is entitled to paid sick leave only after three days of being ill, and he does not receive holiday allowance. He says he’s finding it increasingly difficult to make a living in the gig economy, and in the past year he has started working for a second platform, a delivery service called Wolt, to make ends meet. (Alexander Gaied, chief operating officer at Foodora Austria, disputes the claim that conditions on the platform are getting worse and says riders’ pay per hour has increased 10 percent since January.)

When EU officials first suggested new rules to regulate the gig economy two years ago, Haunold was hopeful that his job was about to change for the better. Negotiations between EU officials over what exactly those rules, known as the Platform Work Directive, should include have been beset by infighting. Trade unionists and labor activists say that’s because the debate has been heavily influenced by Uber.

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“I'm very worried,” says Leïla Chaibi, a French member of the European Parliament representing the Left group, who attended the protest. “Uber is using all the tools they can use in order to destroy the directive.”

Uber spokesperson Casper Nixon did not directly address allegations the company is trying to sabotage the rules, which are still being finalized. “The Platform Work Directive as drafted might cost genuine independent [workers] their protections, jobs and flexibility,” he says. “Like any company, we regularly engage with European policymakers to share our experiences and position on regulation that impacts our business, drivers, couriers, and consumers.”

By 2025, the EU predicts more than 40 million of its residents will work for digital platforms, carrying out tasks such as food delivery, taxi driving, babysitting, caring for the elderly, or data entry. That will make the number of people in the platform labor force larger than the population of Poland, the EU’s fifth-largest country. The new EU platform work rules were intended to better balance the interests of platforms and workers by setting clear guidelines on the use of algorithmic managers, as well as the gig economy’s most contentious issue: workers’ employment status. Right now, millions of platform workers exist in a legal gray area, where it is unclear if they are employees, who are entitled to sick pay and pensions, or if they’re self-employed free agents, who are not.

But recently, any optimism that the new rules could offer more certainty has soured. Unions and activist groups representing platform workers are wary of Uber’s influence because the company’s lobbying has been successful before. In California, voters endorsed a 2020 ballot measure that maintained ride-hailing drivers’ status as independent contractors, after a coalition of companies, including Uber, ran a $200 million campaign in support of the measure. Last year, The Guardian and Le Monde reported that Uber forged close ties with French president Emmanuel Macron while he was economy minister, in order to navigate the strong resistance by local taxi drivers and break into the French market. Nixon, Uber’s spokesperson, claims the company’s “engagement” with Macron was not followed by more favorable regulations.

Now platform workers are concerned that Uber is about to repeat past lobbying success in the EU by shaping the new platform work rules. “The lobby has been mega-intense, especially Uber,” says Kim Van Sparrentak, a Dutch Green member of the European Parliament (MEP), who is responsible for monitoring the new platform work rules for her party. “They have lobbied as much as they could to try to avoid this legislation being useful,” says Van Sparrentak, who has been in the room during the negotiations. “Sometimes it feels like you’re negotiating with tech companies rather than member states.”

Both Van Sparrentak and Chaibi say that arguments put forward by Uber—particularly that a directive that automatically classifies platform workers as employees would threaten jobs—have been repeated by other MEPs and representatives of the European Council.

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Under EU transparency rules, companies need to declare their lobbying budget. In 2022, Uber’s budget was between €700,000 and €799,999 ($760,300 to $869,300). Since 2019, the company has declared 10 meetings with the EU Commission about the directive and another 10 with MEPs, according to data shared with WIRED by Transparency International EU (TIEU).

WIRED and TIEU analysis found another 30 meetings focused on platform work since 2019, which had taken place between MEPs or Commission officials and organizations that are allowed to lobby on Uber’s behalf. Like many companies, Uber is a member of several lobbying groups, including BusinessEurope and MoveEU. Information in the French lobby register also showed that Uber has been discussing the directive with the highest level of the French government. Representatives of France in the EU did not respond to WIRED’s request for comment.

“Uber is the 404th-biggest spender in Brussels, and it pales in comparison to other organizations involved in the [Platform Work Directive] debate,” Nixon says.

It’s true that the Transparency Register does not make it seem like Uber is doing huge amounts of lobbying, says Chaibi, the French MEP. “They're doing a lot of lobbying but using other tools.”

This includes funding research and advertising. Chaibi points to a 2021 study on platform work by the consulting firm Accenture, which states it was commissioned by Uber. Another study by consultancy Copenhagen Economics was commissioned the same year by Delivery Platforms Europe, a lobbying group that counts UberEats among its members. Uber was also among a group of five companies that signed a letter published by the Financial Times in June that argued the EU’s platform regulation was taking the wrong approach.

Uber has also been funneling money into online ads. In September, the platform started running a series of Instagram adverts in Belgium, promoting the company’s positive impact on Europe’s economy, according to Meta’s ad library. “Uber provides benefits—parental leave, sick pay, injury cover and more—to all eligible European drivers and couriers,” one ad read, glossing over the debate about who exactly is eligible. “Myths fuel misunderstandings about Uber’s mission and business practices, so it’s time we shared the facts,” read another.

“Our advertising campaign simply puts certified facts about the company in the public domain,” says Uber spokesperson Nixon. “Uber supports a strong and enforceable directive that ensures platform workers maintain the independence they want and receive the protections they deserve, such as minimum wage, holiday and sick pay.”

What’s at stake for Uber with the new rules is the employment classification of its Uber drivers and UberEats couriers. “Classification is the entry point into the whole range of protections, everything from protection against unfair dismissal, through to sick leave, through to parental or maternity leave, through to discrimination protection,” says Jeremias Adams-Prassl, a law professor at the University of Oxford. “That's why you can also see the attraction of misclassifying workers. If you misclassify individuals, you can try to avoid all of those obligations.”

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Officials are divided about how platform workers should be classified. Many MEPs favor rules that would presume all platform workers are employees—unless the platforms can prove otherwise. But some representatives of EU member states, sitting in the European Council, prefer a system where workers first have to prove they meet a number of criteria before they can challenge their employment status. That’s because member states worry that if the rules are too strict, platforms would respond by shrinking their platform workforce, says Ludovic Voet, confederal secretary at the European Trade Union Confederation. “Some of these countries don't want to confront a business model that might push people out of employment statistics.” Four months after Spain introduced its rider’s law, which mandated that delivery couriers should be considered staff, Deliveroo closed its operations in the country entirely.

Platform workers worry that member states would struggle to enforce whatever new rules the EU passes. Standing in the rain in Brussels, Peeters explains he has worked for UberEats in the city for the past six years. In January, new rules took effect in Belgium that were meant to make it easier for platform workers to be classified as employees. “You know what’s changed? Nothing,” says Peeters. “The price I pay for rent is going up. The price I pay for food is going up. But my [employment] status has stayed the same.” Nixon says Uber complies with all applicable laws wherever it operates. “In Belgium we provide all independent drivers and couriers with free injury, sickness and paternity cover.”

In Spain, the “riders law” has been criticized in some quarters for being ineffective. “The biggest company there, Glovo, is not fulfilling this law for years and years with total impunity,” claims Corredor, who worked as a Deliveroo courier in Spain between 2016 and 2017 and is now an activist for the platform workers group Riders x Derechos. The point of Spain’s riders law was also to force platforms to classify more of their workers as employees. Instead of doing that, Glovo tweaked many of their couriers’ work terms so they could still be classified as independent, according to Corredor. “We are confident that our operating model in Spain, launched in August 2021, meets all regulatory requirements,” says Felix Eggert, spokesperson for Glovo.

For Corredor, this is all part of a bigger battle, where platform workers are battling to fight for the basic rights—minimum wage and maximum working hours—that exist in the rest of the economy. “This is [the platforms’] strategy, using the discourse of innovation and technology to take out these rights,” he claims. “I think this is very problematic.”

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