SOC Investment Group is the name of an investor organization which notably represents the interests of several large worker unions in the United States. This group, known for its outbursts during the general meetings of large companies, has just launched an offensive at Uber to obtain more transparency regarding driver remuneration. Let’s take stock.
Force Uber to act
Concretely, this organization weighs less than 1% in Uber’s capital, but it is enough to propose a resolution for the general meeting which will be held next year. This provision would require the company to disclose its drivers’ compensation in more detail.
In detail, SOC believes that Uber is “unusually opaque” on these subjects and that it leaves investors in the dark about the amount of commissions collected, as well as the evolution of drivers’ remuneration over time. The signatories of this request also believe that we do not know whether these workers have a “living income”.
Uber declined to comment, but responded to the shareholder group by email asking them to withdraw their resolution. The company says the current level of disclosure is appropriate.
In any case, it is a stone in the shoe of this company. SOC Investment Group is well known for its regular stunts which have already forced very large companies to react. Its action thus forced McDonald’s to verify how its practices could potentially contribute to social and racial inequalities, recalls in this regard the agency Bloomberg.
The delicate question of remuneration
It will therefore be interesting to see if this latest attempt is successful and leads Uber to be more open with its data. As a reminder, the question of driver remuneration and their status has always been a sensitive subject for Uber.
In the past, various jurisdictions around the world have considered that the independent status of the latter was not justified and that they should be considered as employees. A significant difference which notably grants them paid leave and improved working conditions, but which also impacts the company model.
What to remember:
- SOC Investment Group, a shareholder organization that represents union interests, calls Uber to account
- The idea is to force the company to be more transparent about driver remuneration
- For the moment, the company refuses to do so and considers that the published data is already sufficient
