The move is beneficial for Uber drivers since it provides them to speak in a single voice. It could also lead to a union.

Despite the fact that Uber does not treat its workers as its employees, Uber drivers are slowly organizing themselves to form unions. Getting Uber to play along with these unions has been challenging, although it has made some progress.

Uber has now entered into an agreement with the International Association of Machinists and Aerospace Workers so as to create an Independent Drivers Guild.

This is the first labour group, the ridesharing company has officially recognized. The guild will help Uber reduce its insurance cost and legal fees. It has also agreed to bring about changes in New York State’s law which will ensure lower taxes on hired rides thus reducing Uber’s expenses.

However, on the downside, it will gives NY’s Uber drivers a collective voice and a bargaining power especially when they are kicked out by it. Furthermore, the Guild can now unionise drivers and force the company to treat them as employees for the next five years.

This is a significant development for Uber as it addresses an important labour issue, including the driver’s pay and compensation.

This is a big win for Uber drivers, who don’t have much legal recourse outside of lawsuits or jump ship to rivals such as Lyft when faced with a difficult situation at Uber.

Now that Uber drivers have unionized, they will be in a position to communicate more often with the company’s management. As for Uber, it has stated that the reduced taxes will be channeled into a benefits fund.

Although far from a perfect deal, it however is significant for Uber drivers since they don’t have to anymore fret over lost wages and time off.