What do Uber’s changes mean for drivers and passengers?

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Uber’s move to give all of its 70,000 UK drivers pensions, holiday pay and a guaranteed minimum wage is expected to be followed by similar measures by some other gig economy companies, delivering a major shake-up to the controversial world of insecure work.

The ride-hailing app has insisted that it will not put fares up but some analysts are sceptical. Others point out that Uber does not appear to have fully complied with a Supreme Court judgment handed down last month.

So what exactly has Uber changed and what does it mean for drivers, passengers and the wider issue of workers’ rights?

Drivers will be paid holiday, automatically enrolled into a pension plan and will earn at least the minimum wage, which from next month will be £8.91 per hour for people aged 23 and over.

The minimum wage payment is calculated after costs that drivers incur, which include car maintenance and insurance.

Previously Uber had classified all drivers as self-employed contractors meaning they did not have these rights but just earned a fee for each trip. On a quiet day this could sometimes mean earning less than minimum wage.

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