Uber whistleblower says current business model absolutely unsustainable
– Whistleblower Mark MacGann, who released the so-called Uber Files, said on Wednesday that although the ride-hailing firm seems to be working to improve its work culture, its economic model is still “clearly” unsustainable.
Uber whistleblower says current business model absolutely unsustainable
According to articles published in The Guardian and Le Monde newspapers in July, Uber Technologies Inc (UBER.N) breached laws and surreptitiously lobbied politicians between 2013 and 2017 as part of an aggressive campaign to expand into new regions.
MacGann, the man in charge of Uber’s attempts to influence government, has come forward as the leaker of more than 124,000 internal documents.
According to MacGann, he felt compelled to come up because he thinks Uber intentionally broke the law and lied to customers about the advantages of the gig economy for drivers.
A statement released by Uber in July said, “We have not and will not make excuses for previous behaviour that is plainly not in accordance with our current principles,” in response to articles published in The Guardian and Le Monde.
Uber’s current CEO Dara Khosrowshahi and his executive team “have done a lot of wonderful things, but they have so, so far to go,” according to MacGann.
On Wednesday, an Uber representative told Reuters to read Khosrowshahi’s 2020 New York Times opinion post, in which he argued that “our existing employment structure is antiquated and unjust.”
Khosrowshahi has previously said that if gig workers were to become employees, ride prices would increase and the workers would lose the freedom they enjoy at now. A new set of regulations is needed, the CEO stated, since employees demand both freedom and benefits.
In his op-ed, Khosrowshahi proposed that “gig economy enterprises be forced to create benefits funds which offer employees cash that they can utilise for the advantages they choose,” such as health insurance or paid time off.
MacGann said during a press conference at Europe’s biggest digital conference, the Web Summit in Lisbon, “My message to Uber is: ‘you’ve done well, (but) you can do it so much better (because) the existing model is just not sustainable.
He claims that Uber has lately reemphasized that “the basis of its business model is independent contractors, because everyone wants to be self-employed, everybody wants freedom.”
But, he said, the facts contradict this idea since there are Uber drivers suing the firm in several countries to “get a minimal minimum of social protection such as sick pay.”
He said that Uber was spending “tens of millions of dollars” in Europe, the United States, and elsewhere to resist laws.
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