FT News Briefing Uber and Lyft told to reclassify drivers, Goldman vs Fed, Sweden’s pandemic
Aug 11, 2020
A California judge has ruled that Uber and Lyft must classify their drivers as employees, stirring debates about workers' rights in the gig economy. Goldman Sachs faces regulatory challenges as the Fed denies its request for leniency following a stressful annual review. Meanwhile, insights reveal Sweden's unique pandemic strategy, which prioritizes keeping businesses open while sparking debate over its economic and public health outcomes. The discussion challenges perceptions of labelling Sweden's approach to coronavirus as too simplistic.
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Gig Economy Model Challenged
- Uber and Lyft's business models rely on drivers not being employees, avoiding healthcare and other benefit costs.
- Classifying drivers as employees could disrupt their pricing and flexibility, potentially impacting their competitive edge.
A Potential "Third Way"
- Uber and Lyft claim they cannot operate without significant service disruptions if drivers become employees.
- They propose a "third way" with scaled benefits based on hours worked, suggesting a potential compromise.
Sweden's Pandemic Approach
- Sweden's COVID-19 approach prioritized healthcare system functionality, not herd immunity or economic protection.
- While Sweden's per capita death rate is high, public support for the strategy remains strong.