Uber announced on Wednesday that it will be increasing the minimum wage for its drivers in France, marking a significant step in a broader agreement between ride-hailing companies and driver representatives in the country.
The move comes as the European Union is taking steps to provide employee benefits to workers in the gig economy, reported Reuters.
As part of the agreement, drivers for Uber in France will now earn a minimum income of 9 euros ($9.85) per trip, a substantial increase from the previous 7.65 euros. In addition, drivers will have a guaranteed income of 30 euros per hour and an additional 1 euro per kilometer traveled.
These changes are set to be implemented in two phases, with the adjustments to the hourly income guarantee and minimum wage per kilometer taking effect by May next year. The increase in revenue per trip will be in effect from February.
Uber’s decision to raise the minimum wage follows similar moves by other ride-hailing companies. According to Bloomberg News, both Bolt and Free Now have also increased their minimum wage for drivers, reflecting a trend within the industry to address concerns about worker compensation.
This development coincides with the European Union’s recent provisional agreement on a bill aimed at providing employee benefits to workers in the gig economy. Companies such as Uber and Deliveroo typically classify their app-based delivery workers as independent contractors, exempting them from general minimum wage laws.
The proposed bill aims to prevent the misclassification of workers as self-employed, ensuring they receive essential labor and social protection rights.
“The package of guarantees on which we have just agreed proves the strength of sectoral social dialogue in France,” stated Yves Weisselberger, president of FFTPR, the organization representing ride-hailing platforms.
Meanwhile, across the Atlantic, a New York state appeals court recently upheld a minimum wage law for app-based delivery workers in New York City. This law requires companies to pay them $17.96 per hour, with the rate set to rise to nearly $20 by April 2025.
The Uber wage increase in France is viewed as a positive development by driver representatives and reflects a growing acknowledgment within the industry of the need for fair compensation for gig workers.
The proposed EU bill, once formally adopted by the European Parliament and the Council, is expected to further strengthen workers’ rights in the gig economy across member states.