Uber whistleblower, “Current business model is 'absolutely' unsustainable”

Mark MacGann, the whistleblower behind the so-called Uber Files, said on Wednesday that the ride-hailing company appears to be taking steps to improve its work culture, but its business model is still "absolutely" unsustainable.

The Guardian and Le Monde newspapers reported in July that Uber Technologies (NYSE:UBER) Inc aggressively broke the law and secretly lobbied politicians to expand into new markets between 2013 and 2017.

MacGann, who led Uber's lobbying efforts to win over governments, identified himself as the source who leaked more than 124,000 company files.

MacGann said he decided to speak out because he believes Uber is knowingly breaking the law and misleading people about the benefits to drivers of the company's gig-economy model.

"We have not and will not make excuses for past behavior that is clearly inconsistent with our values today," Uber said in July in response to the Guardian and Le Monde reports.

MacGann said Uber's current CEO Dara Khosrowshahi and his management team "have done a lot of good things, but they have a long, long way to go."

When asked for comment from an Uber spokesperson on Wednesday, Reuters cited a 2020 New York Times opinion piece in which Khosrowshahi said "our current employment system is outdated and unfair."

Khosrowshahi said gig workers would lose the flexibility they have today if they became employees and travel would be more expensive. The CEO noted that workers want both flexibility and benefits, and new laws are needed to help them.

"I recommend that gig economy companies set up benefits funds that give workers cash they can use for benefits they want, such as health insurance or paid vacation," Khosrowshahi said in his post.

"My message to Uber is: 'good job, (but) you can do it much better (because) the current model is absolutely not sustainable,'" MacGann said at a press conference at Web Summit, Europe's largest technology conference in Lisbon.

He said Uber had recently reiterated that "the core of its business model is independent contractors, because everyone wants to be self-employed, everyone wants flexibility".

But the reality contradicts this view, he said, because Uber drivers are suing the company in various countries to "have a basic minimum social protection, like sick pay."

He also said, "Uber is spending tens of millions of dollars to fight legislation in Europe, the United States and other parts of the world."

Source: reuters

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