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Should Uber Drivers Be Regarded as Employees and Not as Contract Workers?

Uber, is a mobile app that easily connects the passengers and drivers in minutes, making transportation easier anywhere in the world. The app is developed by Uber Technologies Inc. which is an American international transportation network company located in San Francisco, California and founded in 2009.

According to CNBC, its head of global operations, Ryan Graves, claims that "Uber is the most valuable, venture capital-backed private company in the world - and it's worth every penny." And his confidence is coming from CB Insights that reflect data which shows that Uber has already raised nearly $8 billion and is valued at $51 billion.

For investors who feel skeptical towards Uber's high price tag Graves says that it is understandable for a company that is reshaping the the global transportation system. "We've really never let them down," CNBC quoted Graves.

In the span of 5 years Uber's growth has been remarkable. Now, service now brags of the more than one million active drivers picking up and dropping off passengers in over 300 cities around the globe. With this Reuters believes Uber could produce net returns this year of $2 billion.

Uber though still has a hurdle to tackle. In Europe and the US, it has been a debate whether Uber's drivers should be regarded as employees or contract workers. In California, an Uber driver was ruled out by the labor commissioner as an employee so Uber has to shoulder compensation and unemployment insurance.

For Uber, the contractor model works best because the counters that Uber affords gives its drivers work flexibility. Therefore Uber is not surrendering to this issue.

According to CNBC, Graves has explained, "Over half our drivers are using the platform less than 10 hours a week. So, for this full-time discussion, that's just not how our platform is used. When you dig into the data on how drivers think about using Uber, to earn supplemental income, it becomes pretty obvious."


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