Uber may back out of merger talks with Grubhub due to antitrust concern, reports say.
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Uber CEO Dara Khosrowshahi on Monday said its drivers should get the “best of both worlds” — benefits and work flexibility. In an op-ed published in The New York Times, Khosrowshahi proposed that lawmakers require gig economy companies to create benefits funds, which would “give workers cash that they can use for the benefits they want, like health insurance or paid time off.”
“Our current employment system is outdated and unfair. It forces every worker to choose between being an employee with more benefits but less flexibility, or an independent contractor with more flexibility but almost no safety net,” wrote Khosrowshahi. “It’s time to move beyond this false choice.”
The op-ed comes as Uber and rival ride-hailing company Lyft face a possible injunction in California that would force them to reclassify their drivers as employees, something the state says will bring necessary protections to the workers. The injunction stems from a lawsuit brought against the companies by California Attorney General Xavier Becerra in May. The suit alleges Uber and Lyft have “exploited hundreds of thousands of California workers” by classifying their drivers as independent contractors rather than employees — thus violating California state law AB 5.
The ride-hailing company also laid out its proposal in a blog post and document aimed at policy makers and other gig economy companies.
Uber didn’t immediately respond to a request for additional comment.
More to come.