Uber is one of the most successful private companies that has revolutionized how we think about taxis within only a decade. However, its history knows both ups and downs, which makes it a controversial reputation as a city transportation giant. One of the biggest challenges that the company had to face was the way they interacted with the drivers as with private contractors rather than with employees.
In the beginning, it was a risky decision that allowed Uber to hire many drivers and gain much-needed capital by saving the costs of drivers’ compensation. However, it backlashed on the company when drivers began to protest and protect their rights as employees. Finally, that event damaged the company’s reputation and market share, leading to losses.
The decision-making process in the company is difficult, which hinders managerial response to the issue. However, managers could handle the case by improving drivers’ working conditions and providing them with bigger compensation, guaranteed minimum income, or medical insurance. Instead, the company currently faces a lot of criticism and represents one of the biggest evils of the gig economy.