Anabel Díaz, a high-ranking Uber executive, has warned that if the EU proceeds with its plans to classify gig workers as defacto full-time employees, it could compel the ride-hailing platform to cease operations in many cities around Europe. Furthermore, this could lead to a price hike of up to 40 per cent which, according to Ms Díaz, “would lead to less drivers and a significantly longer wait times for customers.”

Uber, originally based in San Francisco, allows its users to request a ride or in some countries (not including Malta) to order courier services through its app. The company was founded in 2009 and now operates in more than 10,000 cities globally. Uber launched its operations in Malta in June 2022, following a partnership between Alf Mizzi and Sons, through its subsidiary Rides & Eats, and UberX Service.

The proposed platform workers directive would enable workers, including Uber drivers and food delivery workers, to receive social security benefits among others. Presently, most platform workers across Europe are registered as self-employed, even though most companies control their uniforms, work hours and can restrict whether they can accept or turn down work. However, with this proposal companies have to register platform workers as full-time employees with additional costs added to the company's responsibilities.

Speaking to Financial Times, Ms Díaz urged Brussels debating this directive this week to approve rules to preserve self-employed workers’ “desire for flexibility.”

“If Brussels forces Uber to reclassify drivers and couriers across the EU, we could expect to see 50-70 per cent reduction in the number of work opportunities,” Ms Díaz added. In turn, she foresees, Uber ceasing operations in hundreds of European cities.

She highlighted that Uber is “sincerely” committed to the European social model, but similar measures implemented in Spain and Geneva “led to devastating job losses.”

“In order to manage the costs of employment, Uber would force to consolidate hours across fewer workers. Drivers and couriers would need to apply for an open role, if one is available, show up for shifts at specific times and places, accept every trip they receive and agree not to work on other apps,” Ms Diaz remarked.

The Financial Times further cited Ms Díaz as claiming that the directive will lead to a decrease in Uber's profits in Europe. Nonetheless she stated that “this isn’t about Uber’s profits. We have already proven our ability to grow in places like Germany and Spain using a third-party employment model.”