Thread by @garius

Before everyone starts getting excited:

1) Uber didn't reclassify its drivers as workers, the COURTS did. Uber is just doing the paperwork
2) Drivers already earn more than the minimum wage
3) They're still refusing to count idle time as work

So what's it mean? /1

https://twitter.com/business/status/1371933125606060033

Well first up, a reminder that if you've not read my previous Uber stuff over the years, and how they tech-broed themselves into an unnecessary (but hilarious) encounter with the Duck Test in UK law, then start here:

https://twitter.com/garius/status/1362723609006006274?lang=en-gb

Now you're caught up, what does this announcement mean?

Well... nothing really. Nothing new anyway. They're doing what they had to do. If they hadn't made these changes promptly they'd have lost their operator licenses.

Uber are just very good at writing press releases.

In fact Uber have form for spinning real-world defeats into a story of Uber doing something clever.

They did it with the court case they 'won' against TfL to get their license back.

They won that by demonstrating they were a cab company. Which was what TfL really wanted anyway.

So all you're really seeing now is a lot of excited natter that really boils down to:

UBER COMPLY WITH JUDGEMENT AGAINST THEM.

That's it. There's nothing new there. Not really. Not yet.

Because it was never about 'minimum wage'

Uber promising their drivers minimum wage is like me promising my wife I'll take the bins out tomorrow. I do it every week already, and was going to do it anyway.

The PROBLEM for Uber is the benefits, and the follow on from all of this:

The multi-BILLION pound VAT bill.

Is this the START of the next stage of Uber's necessary restructure in the UK?

Yes.

But that's all it is. This isn't news. It's just Uber complying with the law, and acknowledging the contractual changes they now have to make.

The devil will be in the detail.

As we always say over on @lonrec, the only good thing about press releases is what they DON'T tell you. Always look for the gaps. Because that's the bits the company is desperately hoping you won't ask about because you're too busy reading the bits they WANT you to.

So here's what Uber AREN'T saying in it:

1) how much HMRC will screw Uber for (VAT is RETROSPECTIVE).
2) What they do about covering VAT in future.
3) How they structure driver contracts/hours to minimise the benefit costs
4) How they push further costs back on the driver

When i work THOSE bits out, we'll write something about it.

But until then this isn't quite a nothingburger, but it's basically Uber asking to be clapped for losing a court case, so the market price doesn't drop.

And I'm sure the Elon Muskovites will be along shortly to comply.

Note that Uber have been careful to say that this all applies to time DRIVING for them, and not including idle time.

That's the dodge they're continuing to try to pull. That it's only when a pickup is accepted/underway that a driver is working.

https://twitter.com/martinald/status/1371959909508612098

Oh, and standard reminder to Uber drivers:

My DM's are open. And it's always useful to me to see what they''re telling YOU.

Because you can be sure they never reply when I ask them to show me. 😁