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Uber takes a major blow on recent UK supreme court ruling

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Yahoo Finance contributor LaToya Harding breaks down a recent ruling by the UK Supreme Court’s on Uber drivers being recognized as workers and not independent contractors.

Video Transcript

- We are looking over to the UK this morning, because there was an important court ruling that has to do with Uber, quite similar to the court and legislative battles that Uber underwent in the state of California. Our LaToya Harding is joining us now from the UK to explain this ruling and its importance. Good morning, LaToya.

LATOYA HARDING: Morning. Yeah, that's right. Yeah. Uber lost a pivotal Supreme Court case on drivers rights in the UK today. So, it was basically ruled that Uber drivers in Britain qualify as workers rather than contractors.

So, that means that they are qualified for full employment rights. And so, there are around about 40,000 Uber drivers in the UK and they're now entitled to minimum wage, holiday pay, sick pay and rest breaks. The union which reported Uber drivers, who brought the claim, GMB, they called the judgment a historic win, was the words that they used today.

And, of course, it was a long running battle. But the case in itself comes as a blow for the company and it could lead to compensation claims from other drivers elsewhere. And also, a challenge to Uber's business model in the UK too. So, that's affected Uber's shares today, down pre-market at the moment.

Now, just quickly, with markets for us here and across the pond, it's been a subdued start to the day, but they are all higher and that's on the back of a vaccine recovery, vaccine rollout across Europe. So, the FTSE, the DAX, the CAC, they're all in positive territory at the moment. And of course, restrictions hopefully easing in the coming weeks also pushing the markets higher.

The FTSE managing to shake off the pound after three consecutive days of decline. And that's also even with a firmer pound, which hit highs against the dollar today at $1.40. And again, that's a level not seen since April, 2019. Yeah and so, we've also had data as well today.

So again, the FTSE managing to climb in the pound also despite having a bit of negative data today with UK retail sales falling and government borrowing again. It's the cost of about $8 billion pounds in January. So, yeah, that's the news from us over this side of the pond.

- LaToya, thanks. Fingers crossed also for you guys that restrictions start to ease in the coming weeks. I know it's been tough, as I've been hearing from my friends over there. So, be well. Have a great weekend. We'll check back in with you next--

LATOYA HARDING: Thank you. You too.