London Daily

Focus on the big picture.
Saturday, Feb 21, 2026

What is the gig economy and how will it be affected by Uber's announcement?

What is the gig economy and how will it be affected by Uber's announcement?

The taxi app has been forced to upgrade conditions after a lengthy legal battle, but what might it mean for other workers?

Uber's announcement of basic employment rights for its drivers comes after a long-running court battle that could force a shake-up in the so-called gig economy.

What is the gig economy?


The term describes a way of working where work is assigned on a short-term or job-by-job basis via platforms such as Uber, a taxi app, Deliveroo, a takeaway food service, or courier companies such as Hermes or DPD.

Other smaller platforms connect people with opportunities from office and administration work to teaching, gardening and domestic jobs.

Some use the work to top up their main salary or as a stop-gap, while for others it is the main source of income.

Until now, employers have been able to save on costs because those workers are classed as self-employed contractors rather than employees.

That meant they were not seen to be entitled to paid sick leave or holiday, or pensions, and - the companies argue - gave those contractors the flexibility to pick and choose when and how much they want to work.

Data on the UK gig economy is scarce, but the Chartered Institute for Personnel and Development (CIPD) estimated in 2017 that 1.3 million people, or 4% of all those in employment, worked in it.

Delivery firms such as DPD also use self-employed workers


What's the problem?


Uber's argument about the independence of drivers was not accepted by the Supreme Court.

It pointed out that the company sets fares and other terms and drivers have no say in them, and they can be penalised for not taking enough jobs or if they score poorly on a customer rating system.

The judges concluded that drivers are "in a position of subordination and dependency to Uber", with "little or no ability to improve their position through professional or entrepreneurial skills".

Unions say gig economy workers should be entitled to the same benefits and protections as everyone else.

While Uber says it will now do the right thing on worker benefits, for its private hire drivers at least, critics say that is only because they have been dragged "kicking and screaming" to do so.

The Supreme Court rejected Uber's arguments


Does this mean gig economy workers now have the same rights as everyone else?


No. The court ruling at the centre of all the latest developments classed the Uber drivers who brought the case as "workers".

That's a halfway house somewhere between self-employed and employee status.

It means that they are entitled to rights such as minimum wages and paid holiday - and in some cases statutory sick pay and paid parental leave.

But they usually miss out on others, such as minimum notice periods if they are sacked, time off for emergencies and statutory redundancy pay.

Courier firm DPD has already, in 2018, offered its drivers the chance to upgrade their employment protections to those of a "worker".

People classed as workers are entitled to minimum wages


What are the wider implications?

Susannah Streeter, an analyst at Hargreaves Lansdown, thinks Uber's move will "reverberate through the entire gig economy".

But Uber argues that it is specific to the private hire vehicle part of its business - and not, say, food delivery operations such as its own Uber Eats brand or rival Deliveroo.

It has also caused disquiet over the issue of what time its cab drivers should be paid for.

The Supreme Court says they should be entitled to wages for any period when they are logged on to the Uber app, but the company says they will only be paid from the time they accept a trip request.

Lawyers for the drivers in the case, James Farrar and Yaseen Aslam, said they were concerned that Uber was seeking to "cherry-pick" aspects of the judgment and would be poring over the detail.

Mr Farrar and Mr Aslam said Uber's move would leave Uber drivers "short-changed to the tune of 40-50%"

Newsletter

Related Articles

0:00
0:00
Close
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
North Korea's capital experiences a significant construction boom with the development of a new city district dubbed 'Pyonghattan'.
New electric vehicle charging service eliminates waiting times
Vox Populi confronts Justin Trudeau at Davos over vaccination policies
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
The mayor of Rotherham in Britain
One day after ex-Prince Andrew's arrest, British police are searching his former home, while U.K. lawmakers will consider introducing legislation to remove him from the line of royal succession
Vandana Shiva reminding the world that Bill Gates did not invent anything.
Italy's PM Giorgia Meloni highlights record employment and economic growth
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
The Impact of U.S. Sanctions on Cuba's Humanitarian Crisis: A Tightening Noose
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
British Co-founder of ASOS falls to his death from Pattaya apartment
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
Unable to Access Live Financial Data for January UK Surplus Report
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
UK ‘Working Closely with US’ to Assess Impact of Supreme Court Tariff Ruling
Trump Criticises UK Decision to Restrict Use of Bases in Potential Iran Strike Scenario
UK Foreign Secretary and U.S. State Chief Hold Strategic Talks as Tensions Rise Over Joint Air Base
Two teens arrested in France for alleged terror plot.
Nordic Fracture: How Criminal Scandals and Toxic Ties are Dismantling the Norwegian Crown
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
AI Pricing Pressure Mounts as Chinese Models Undercut US Rivals and Margin Risks Grow
Global Counsel, Advisory Firm Co-Founded by Lord Mandelson, Enters Administration After Client Exodus
London High Court dispute over Ricardo Salinas’s $400mn Elektra share-backed bitcoin loan
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
×