Uber reclassifies UK gig drivers as "workers" — now it could have a precedent problem

Don't know what a Nissan Sentra looks like... Didn't see it coming: Uber lost a major labor battle last month, when the UK's Supreme Court ruled that its drivers are entitled to a minimum wage and other worker benefits. This week, Uber made the worker reclassification official.

• Fresh status: Uber granted its 70K UK drivers a new (less gig-y) employment status that includes vacation pay, pensions, and a minimum wage.
• Fresh costs: The UK is one of Uber's largest markets, making up ~6% of gross ride bookings at the end of 2020. So the shift could be pricey...

But not as pricey as you'd think... Uber usually doesn't pay its drivers wages — it just connects them to riders, then keeps ~25% of the fare. While the new UK benefits sound costly, they're not as expansive as they sound.

• What disappointed labor activists: Drivers are guaranteed minimum wage only after they've accepted a trip (not if they’re just in the app looking for work). Also: Uber Eats delivery drivers aren't included in the change.
• Uber says the average driver already makes more than the UK minimum wage of ~$12/hour. And that it would be illogical to pay them while they're potentially working on another app (like Lyft) at the same time.