McJobs and UberJobs

THE French enjoy nothing more than resisting the forces of Anglo-Saxon capitalism. On June 25th French taxi drivers paralysed Paris in protest against Uber, a ride-sharing service, and attacked a few Uber cars for good measure. On June 29th police arrested two of Uber’s managers in France for “illicit activity”. But from Uber’s point of view, all this is but a minor inconvenience: Paris is just one of 300 cities it serves. Far more worrying is what is happening in the company’s own backyard in San Francisco.

On June 3rd the California Labour Commissioner ruled that Uber owes a former driver, Barbara Ann Berwick, $4,152, mostly in expenses, on the ground that she was an employee rather than, as Uber claims, an independent contractor. Uber is appealing against the ruling. But it is a harbinger of things to come: San Francisco courts are also hearing two more cases that hinge on the same question. If the rulings go against the company, its labour costs may rise significantly, as it is forced to pay drivers’ social security and other benefits as well as their expenses. Its valuation, which is currently above $40 billion, may suffer.