Skip to main content

Uber gives drivers a chance to save for retirement

uk uber loses driver case
Kampee Patisena/123RF
Uber is providing its drivers a new convenience, not to be confused with an employee benefit. The ridesharing giant holds firm to its stance that its drivers are independent contractors and not employees, a position drivers are fighting in court. Against that backdrop, however, Uber just announced a retirement savings account (RSA) program for its drivers, according to Silicon Beat.

In a post on the Uber blog, the company explains its partnership with Betterment for the driver RSAs. Uber describes Betterment as “the largest independent robo-advisor.” The new plan is available now to Uber drivers in Seattle, Boston, Chicago, and the state of New Jersey. Uber intends to extend the plan nationwide.

“With Uber, you can push a button and get work,” reads the blog post. “And now, drivers can use the same innovative app that gives them complete control over their time and schedule to have the opportunity to take control of their financial future as well.”

It’s worthy of note that the phrase “complete control over their time and schedule” is one of the litmus tests for deciding whether someone is an employee or a contractor.

It’s also worth noting that Uber drivers say they do not have complete control of their schedule, since the company gives them “time-outs” for not accepting a minimum number of trips.

The RSA will have no fees for the first year. Drivers can open a traditional Betterment IRA or a Roth IRA. No minimum account balance is required and Betterment advisers will “walk investors of every skill level through every step of the investment process.” Retirement accounts are highly regulated in the U.S. and investment advisers are mandated to assess client investment skill and risk acceptance levels.

This quasi-benefit makes it easy for Uber drivers to save their own money in retirement accounts. The RSAs, however, cannot be confused with a real employee benefit for which an employer generally bears some expense.

Editors' Recommendations

Bruce Brown
Digital Trends Contributing Editor Bruce Brown is a member of the Smart Homes and Commerce teams. Bruce uses smart devices…
Alpine sale: Up to $160 off speakers and subs for your car
alpine speaker sale crutchfield march 2024 car and amp setup on table

If you’re looking to kit your car out with some superior speakers or a subwoofer, Crutchfield is the place to go today. Right now, there’s a huge sale on Alpine subwoofers and speakers with nearly 50 different items forming the sale. As there are so many options, the best idea is to hit the button below to see what’s around. If you don’t know where to start though, read on while we take you through some great items in the sale.

What to shop for in the Alpine sale
Buying the best aftermarket car speakers are important for anyone who spends a lot of time on the road and is currently dealing with a mediocre sound system. One good starting point in the Alpine sale is the 2-way speakers for $104 instead of $130. You get two 2-way speakers with a polypropylene/glass fiber/mica woofer with a specialized rubber surround. There’s a one-inch silk dome tweeter with speakers able to handle up to 80 watts RMS with 240 watts peak power. The grilles aren’t included but the factor ones should be fine for most purposes.

Read more
Mercedes to trial humanoid robots for ‘low-skill, repetitive, demanding’ jobs
Apptronik's Apollo robot at work in an auto plant.

Humanoid robots have been coming on leaps and bounds in recent years, and some major companies are starting to take note.

Mercedes-Benz, for example, has just entered into an agreement with Texas-based robotics specialist Apptronik to collaborate on identifying applications for highly advanced robots that the auto giant could deploy. The deal will involve a trial that will see Apptronik's Apollo humanoid robot work alongside Mercedes' human workers on the factory floor.

Read more
Hyundai Ioniq 9: price, release date, range, and more
Hyundai Ioniq 9 Front

Hyundai has been at the forefront of EV development for a while now, largely thanks to the success of the crossover-sized Hyundai Ioniq 5. But the company is readying another new EV that could be even more popular than the Ioniq 5 -- or at least more desirable in the U.S., the land of big cars.

The upcoming Ioniq 9, previously set to be called the Ioniq 7, will be Hyundai's take on an electric SUV. It will be to Hyundai what the Kia EV9 is to Kia. It will have three rows and carry over design elements from the Ioniq 5.

Read more