Companies

FTC urges Uber Eats to make improvements on workers’ pay

REUTERS/Eva Plevier/File Photo
An Uber Eats delivery bag is seen in this photo.

Jiji Press

13:28 JST, September 17, 2022

TOKYO (Jiji Press) — The Fair Trade Commission has urged Uber Japan Co., the operator of the Uber Eats food delivery service, to make improvements over its compensation system for delivery workers, informed sources said Thursday.

Uber Japan changed its delivery compensation system in May last year, leading to lower payments to some delivery workers.

The commission examined the change for a possible case of the abusive use of a superior bargaining position under the antitrust law.

The commission found no illegality in the system change, noting that some workers receive higher pay under the new system.

Given that the change was notified only a week before it was implemented and that the company had no opportunity to hear opinions from delivery workers, however, the commission told Uber Japan in late August that it is important to ensure transparency.

In Japan, more than 130,000 people are estimated to have worked as Uber Eats deliverers over the last year.