Hot on the heels of consumer complaints in the UK about credit card fraud, ride-hailing app Uber has filed an appeal against a decision that an Uber driver in California was an employee rather than a self-employed contractor.
In March this year the Labor Commission found in favour of the female driver and awarded her over $4,000 for the costs she incurred running her car. Lyft, a similar app, also faces employment status claims from its drivers in California.
Uber operates in more than 250 cities across 55 countries and is valued at more than $40 billion (£27 billion). It is a smart phone app which enables drivers to connect with passengers and pay for the ride by credit card. Uber claims it merely provides its self-employed drivers with a platform for connecting with potential customers and carrying out a private transaction with them for which they are paid directly. Opponents argue, however, that in reality Uber is operating a fleet of drivers and effectively hiding behind technology to deprive them of their employment rights.