Potential Uber investors should think carefully about buying into a business model reliant upon illegal exploitation says IWGB as stock market flotation moves closer.
Last night the ride-hailing firm made its S1 filing with the SEC in the US which marks a critical step on the way to an imminent stock market flotation. The filings revealed much about Uber's business model and provides an ominous prospectus to investors.
Within the prospectus Dara Khosrowshahi produced a message detailing why investors should buy in to the Uber model. The full letter can be read here:
James Farrar, Chair of the United Private Hire Drivers branch of the IWGB union and co lead claimant in Aslam & Farrar v Uber said: Once again, greed reigns in Silicon Valley greed with Uber founder Travis Kalanick set to make around $9 billion from the IPO while drivers are offered a miserly $76 each on average. The company warns investors that drivers are deeply dissatisfied but, rather than address their concerns, management instead promises to slash pay further. Uber has been forced to recognise our 2016 Employment Tribunal victory, which they plan to appeal at the UK Supreme Court, as a material risk to their business. Investors should therefore think carefully before betting on a business model reliant upon illegal exploitation of workers and demand Uber clean up its act before a stock market flotation not after.