On Friday, the UK Supreme Court unanimously ruled that Uber’s (NYSE: UBER) are employees and the company will have to pay minimum wage, allow holiday vacations, and set up a pension scheme.
This is a big defeat for both the gig economy and Uber, both of which are sure to see expenses rise. The ruling will likely have far reaching effects, as the UK’s gig economy employs millions of people.
Although this loss will affect Uber's profitability in one of its biggest markets, the stock moved sideways during the day, closing down by just 0.98%.
The gross volume of the gig economy was around $300 billion and expected to grow to $455.2 billion in 2023. But moving forward, legal hurdles and laws may affect the business model of gig economy companies such as Uber, Lyft, Fiverr, and UpWork.