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Uber counts the costs of workers’ rights

Ride-hailing app takes $600m accrual as zeitgeist moves against the gig economy
Uber counts the costs of workers’ rights
  • Charge was $100m higher than market expectations
  • Quarterly numbers revealed high dependency on gains from asset sales
IC TIP: Sell at $46.65

The Supreme Court ruling in February that Uber had to uphold the minimum standards of rights of its army of gigging cab drivers was always likely to cause a significant financial hit for the app ride hailing company that everyone loves to use, and hate. The first quarter results showed an accrual of $600m linked to granting worker rights in the UK, on top of the hit that the company has taken from a lockdown blighted start to the year. The market’s verdict on the day of the results, a near 9 per cent fall in the share price, told its own story.

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