A court in Milan has ordered the appointment of a judicial administrator to oversee Uber Italy for one year after determining the company’s food delivery service exploited workers, according to Italian news reports.
The decision on Friday came amid an ongoing investigation into Uber’s activities in Italy.
Italian news agency ANSA quoted the court saying that Uber’s treatment of delivery workers was similar to the “caporalato” system used by organized crime groups to pay desperate migrants a pittance to do farm or construction work off the books.
In a statement carried by ANSA, Uber said it condemned “every form of capolarato” and complies with Italian laws. Uber said it would “continue working to be a true, long-term partner in Italy.”
Uber has faced opposition before in Italy. The company is only allowed to offer its higher-end Uber Black service after Italy’s taxi lobby protested the ride-sharing service in 2017.
The Italian General Confederation of Labor vowed to stand by the food delivery riders and said the issue of inadequate pay showed “we are in the presence of a digital caporalato.”
Coronavirus: Uber to cut 3,000 jobs, trim investmentUber on Monday announced it is cutting a quarter of its global workforce and trimming investment to survive the financial hit to its business from the ... Coronavirus
Coronavirus: Saudi nationals driving for Uber, Careem, to get three-months salarySaudi nationals working as drivers in ride-sharing applications such as Uber and Careem whose income has been affected by reduced activity due to the ... Coronavirus
Uber loss widens to $2.9 bln amid global coronavirus lockdownsUber on Thursday said its loss widened to $2.9 billion in the first quarter as the ridesharing giant absorbed the impact of the global coronavirus ... Coronavirus