Some drivers at global ridesharing giant Uber have welcomed a New Zealand court’s decision to classify them as employees rather than contractors.

In 2022, the Employment Court handed down a landmark decision against Uber, granting workplace protections to four Uber drivers.

The ruling provided the drivers with employee benefits, including leave entitlements, holiday pay and the minimum wage.

Uber appealed against the decision in June 2023, but the Court of Appeal rejected the challenge on Monday, ruling in favour of the drivers.

“I think the decision is really good,” said Asesh Narayan, a full-time Uber driver from Auckland.

Narayan, who has been driving for the rideshare company since 2021, believed the decision would significantly benefit drivers.

“Uber has so many drivers in Auckland now that you can’t make a living out of it anymore,” he said. “It takes ages to get a ride these days.”

Narayan said ride requests had declined dramatically in recent months.

Photo: 123RF

Murali Radhakrishnan, a driver from New Plymouth, shared a similar view.

“The earnings were pretty good when the economy was in better shape, but now it’s much less,” he said.

Radhakrishnan, who has been driving for Uber for the past 18 months, said fewer people appeared to be using the app.

“I used to make about $250 on a good day here in Taranaki, but now that’s gone down to $50 to $100 a day,” he said.

He said while the number of drivers hadn’t increased much in the region, the number of ride requests had significantly declined.

Jojo George, who drove part-time for Uber in Auckland until about 12 months ago, quit after struggling to secure enough rides.

“I used to have days where I could make between $1,000 and $2,000, but those days are long gone,” George said.

He appreciated the flexibility of being a contractor, allowing him to work on weekends, but said that Uber’s market dominance had made things difficult, particularly with changes in pricing and surge rates.

“We used to get 1.2 to 2.2 times the normal rate during peak hours, but now Uber’s pricing changes mean we only get a dollar or two extra, which doesn’t help,” he said.

“Given the current situation, being an employee might be a better option than being a contractor.”

Uber drivers rally outside the Court of Appeal in Wellington on 19 March. Photo: RNZ / Pretoria Gordon

Mathews Biju, who used to drive Uber for more than 12 hours a day, had also reduced his hours.

“All my friends used to drive part time, but most of them have stopped because it’s not practical anymore,” Biju said.

Biju echoed the same concerns as other drivers, now only driving on occasion.

“The number of trips has declined, and with factors such as rising petrol prices and car maintenance costs, it simply isn’t favourable for drivers anymore,” he said.

“I don’t think anyone can make money driving for Uber these days.”

Biju said that while people, including himself, would be willing to work for Uber if they were guaranteed at least a minimum wage, he’s doubtful whether Uber could implement such changes.

On Monday, Uber Australia and New Zealand managing director Emma Foley said it would seek to appeal the decision again.

“The court’s decision exacerbates the current state of uncertainty for workers who value the flexibility of contracted arrangements and for businesses across New Zealand that rely on contractor workforces,” she said.

She added there was an urgent need for certainty in the law pertaining to contractor arrangements.

“We believe such arrangements – where people have genuine flexibility and are also free to work for other companies, including competitors – are an important feature for all industries across New Zealand in the 21st century.

“Ninety percent of drivers and delivery people tell us that they would not keep earning with Uber if the current flexibility of the work were to go away. Flexibility and choice are hallmarks of today’s modern workforce, and Kiwis deserve certainty when it comes to the type of work they choose to do.”

In June, Workplace Relations and Safety Minister Brooke van Velden began working on law changes that could prevent workers classified as contractors from challenging their employment status in the courts.

FIRST Union and E tū Union have since called for the minister to drop her expedited plans.

The Labour Party celebrated the Court of Appeal’s decision, saying Uber drivers deserved to be treated fairly and protected by law.

The Green Party urged the government to respect the court’s decision and not tamper with employment protections.

Biju said people only worked for Uber these days out of desperation to earn a little cash but believed that the glory days of driving for Uber had passed.

However, he remained hopeful that the situation could improve if Uber made its drivers permanent employees.

“I think a lot of people will return to driving cabs if Uber does that,” he said.

rnz