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SCIENCE AND TECHNOLOGY

Uber considers offering their workers in Mexico social security benefits

Uber considers offering their workers in Mexico social security benefits
The Siliconreview
24 November, 2022

Delivery and ridesharing apps worldwide have pushed back against demands to classifying workers as employees rather than independent contractors

Tech giant Uber and delivery apps Rappi and DiDi are considering offering their workers in Mexico, social security benefits for the first time. This is in line to regulate the gig economy. The companies are trying to cover drivers and couriers who work an average of more than 40 hours a week on one or more platforms. Details about how the payments towards the social security costs would be divided are yet to be etched out. The Mexican Labour Minister Luisa Alcalde has clarified that working on a bill would formalize the gig workers even though the timeline is still unclear. It is yet to be decided if the drivers employees or propose other reforms in line with the app’s statement.

Delivery and ridesharing apps worldwide have pushed back against demands to classifying workers as employees rather than independent contractors as these changes would hinder their business models and deny drivers flexibility. The companies also suggest establishing mechanisms to ensure fair pay. Nicolas Sanchez, Uber's head of public policy in Mexico, said that he hoped that extra costs would be low but Uber was "open to them" if the industry, which encompasses some 500,000 people, was allowed to retain flexibility.