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Uber CEO Dara Khosrowshahi proposes "benefits funds" for gig workers

Uber CEO Dara Khosrowshahi called for establishing "benefits funds" for gig workers in a New York Times op-ed out Monday.

Why it matters: Gig workers, who remain independent contractors and not employees, have long pushed companies like Uber for benefits comparable to those received by traditional workers. The coronavirus pandemic and its resultant economic strain has broadened those calls.


  • His plan would "give workers cash that they can use for the benefits they want, like health insurance or paid time off. Independent workers in any state that passes this law could take money out for every hour of work they put in."
  • He said that such a model would provide flexibility to allow gig workers to put money toward a benefit of their choosing — noting, for example, that many Uber drivers don't put health care near the top of their list of desired benefits as they often obtain it via a family member or the Affordable Care Act.

What he's saying: Khosrowshahi argued that Uber's drivers should not be treated like employees, because such a move would hurt the flexibility of their working hours and the company "would only have full-time jobs for a small fraction of our current drivers and only be able to operate in many fewer cities than today."

Worth noting: He also called on states to do more, saying they "should require all gig companies to provide medical and disability coverage for injuries incurred on the job."

  • "We also need new laws that prevent companies from denying independent workers opportunities based on their race, religion, gender, sexual orientation or any other protected characteristic."

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Quibi says it's shutting down

Quibi, the mobile-only video subscription streaming service, is shutting down, the company announced Wednesday. The company said the decision was made to preserve shareholder equity.

Why it matters: Quibi had struggled to hit its subscriber growth targets amid the global pandemic. The app launched six months ago.

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Scoop: Hotels back out of housing migrant families

At the last minute, four hotels in Texas and Arizona backed out of agreements to house around 600 migrant family members amid growing border-crossing numbers and swirling political debates over immigration, Axios has learned.

Why it matters: The nonprofit Endeavors has already secured new hotels to fulfill its $87 million contract with Immigration and Customs Enforcement. Still, the last-minute changes underscore the logistical and political hurdles to finding space for the increasing numbers of migrant families and children illegally crossing the U.S.-Mexico border.

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