Ride-sharing app Uber’s (NYSE: UBER) head of mobility division in Europe, Anabel Díaz, warned that Brussels’ plans to categorize gig workers as “de facto” employees could result in Uber shutting down in hundreds of European Union (EU) cities and raising fares by up to 40%, according to a Financial Times report.
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Díaz urged EU lawmakers to support regulations preserving the flexibility desired by self-employed workers. She cautioned that reclassifying drivers and couriers could lead to a 50% to 70% reduction in work opportunities, necessitating Uber’s exit from numerous EU cities. The proposed law, giving gig workers full employment rights, could also hike prices by as much as 40%, causing longer wait times due to fewer drivers.
The top executive commented, “In order to manage the costs of employment, Uber would be forced to consolidate hours across fewer workers. Drivers and couriers would need to apply for an open role, if one is available; show up for shifts at specific times and places; accept every trip they receive; and agree not to work on other apps.”
Despite industry concerns, EU officials aim to provide gig workers with more rights and protection.
What is the Fair Price for Uber Stock?
Analysts remain bullish about UBER stock with a Strong Buy consensus rating based on a unanimous 32 Buys and one Hold. The analysts have a consensus price target of $59.13 on the stock, implying an upside potential of 24.3% at current levels.
