Uber CEO: gig workers deserve better

Yahoo Finance’s Kristin Myers and Sibile Marcellus discuss Uber CEO Dara Khosrowshahi’s new Op-ed in the New York Times which reads in part, "This is the time for Uber to come together with government to raise the standard of work for all."

Video Transcript

KRISTIN MYERS: Welcome back to Yahoo Finance. Well, let's talk Uber, because CEO Dara Khosrowshahi says that good workers deserve better. You heard that right. Yahoo Finance's Sibile Marcellus has more. Hey, Sibile.

SIBILE MARCELLUS: That's right. So Uber is actually fighting a lawsuit from California's attorney general accusing Uber of classifying drivers as contractors to deny them benefits. Well, Uber CEO Dara Khosrowshahi is fighting back, and he wrote an op-ed in "The New York Times." Here's what he said. Quote, "I'm proposing that gig economy companies be required to establish benefits funds which gives workers cash that they can use for the benefits they want, like health insurance or paid time off."

So what the Uber CEO is actually mentioning here and proposing is actually pretty revolutionary in the same way that the gig economy made a lot of changes offering people the flexibility to be an Uber driver, but then not be a full-time employee. Seeing that same flexibility of schedule, we should honor that by not making them full-time employees, but at the same time create a benefit fund that all gig economies contribute to.

So that when, say, an Uber driver works for an hour, every hour they work, they earn benefits. And they can use those benefits the way they want, whether it's for health care or paid time off. So a very interesting take there from Uber CEO in fighting back, especially in terms of the new law that was passed in California.

KRISTIN MYERS: All right, thanks so much, Sibile.