8-KRegulation FDExhibits & Filings

Uber Technologies, Inc 8-K Report, Regulation FD Disclosure (Mar 16, 2021)

Filed March 16, 2021For Securities:UBER

Summary

Uber Technologies, Inc. (UBER) filed an 8-K on March 16, 2021, disclosing a significant operational change in its United Kingdom (UK) business. Effective March 17, 2021, private-hire drivers on Uber's UK Mobility platform will be classified as 'workers' under UK law. This new classification means drivers will be entitled to minimum wage (National Living Wage), holiday pay, and pension contributions, while remaining self-employed for tax purposes. This change is expected to have a moderate impact on Uber's financial performance, as the UK Mobility business accounted for approximately 6.4% of global Mobility Gross Bookings in Q4 2020. Notably, Uber anticipates no changes to its previously announced expectations for Adjusted EBITDA for Q1 or the full year 2021, suggesting the costs associated with this transition are either already priced in or will be manageable within existing financial projections.

Key Highlights

  • 1Uber reclassifies UK drivers as 'workers' effective March 17, 2021, granting them minimum wage, holiday pay, and pension eligibility.
  • 2Drivers retain self-employed status for tax purposes despite the 'worker' classification.
  • 3The UK Mobility business represents a relatively small portion of Uber's global operations (6.4% of Q4 2020 Gross Bookings).
  • 4Uber expects the new driver classification to have a manageable financial impact, with no changes to prior Adjusted EBITDA guidance for Q1 or full-year 2021.
  • 5Current UK driver earnings are reported to be above the National Living Wage, with average earnings of approximately £17/hour in London and £14/hour elsewhere (after expenses).
  • 6Holiday pay will be calculated at 12.07% of earnings and paid bi-weekly.
  • 7Eligible drivers will be automatically enrolled in a pension plan with Uber contributing approximately 3% of their earnings.

Frequently Asked Questions

Effective March 17, 2021, Uber drivers in the UK will be classified as 'workers.' This is a distinct legal status in the UK that is between being an employee and being self-employed. It grants them rights to minimum wage, holiday pay, and pension contributions, but they will remain self-employed for tax purposes.

Uber anticipates a manageable financial impact. The UK Mobility business is a relatively small part of their global operations. Crucially, Uber has stated that this change will not alter their previously issued guidance for Adjusted EBITDA for Q1 2021 or the full year 2021.

Uber states that approximately 99% of their UK drivers already earn more than the National Living Wage, with average hourly earnings post-expenses cited at £17 in London and £14 in the rest of the UK. Drivers will now receive paid holidays based on 12.07% of their earnings and pension contributions of roughly 3% of their earnings, which are new entitlements.

UK drivers will now be entitled to the National Living Wage (the UK's minimum wage), holiday pay calculated at 12.07% of their earnings and paid bi-weekly, and automatic enrollment into a pension scheme where Uber will contribute approximately 3% of their earnings.