Uber offers retirement plans to drivers as legal battle continues

Now a days the latest technologies are being introduced into the market. Mobile app development is becoming more and more popular. Now every industry is developing mobile apps into their business to attract more customers into the business and increase more revenue.  

Now, Uber Company has announced retirement benefits through Betterment scheme, an automated investment to their employees in several cities. This offer was announced firstly in Seattle, Boston, Chicago and New Jersey. Uber plans to expand this scheme throughout the world, and offer the employees the opportunity to register for Betterment scheme by directly using the Uber mobile app.

When Uber had taken the decision about the retirement savings plans they had a battle over the discussion on whether the  drivers needs to be considered like employee or independent contractors  and Uber tells that scheme is designed based on the drivers feedback.

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The drivers in San Francisco and Massachusetts have completed their service.  Uber announced $100 million to their drivers. The San Francisco judge has rejected $100 billion settlement, some drivers spoke about the settlement, saying that it is insufficient, and US District Judge Edward Chen appeared to agree – he called this settlement as unfair for drivers."Now this is the case, it seems very likely that the range can be reduced drastically over 8,000 drivers," the driver's attorney, Shannon Liss-Riordan, 

The Wall Street Journal said.

Retirement plan are the part of the employment package. By offering the plan to drivers, Uber is taking its stance of considering the drivers as contractors. The plans will not change the classification of drivers' employment – Uber would not match up any money that has been saved by the plan as traditionally done by the employers.

Betterment account will be free for Uber drivers for one year without any minimum balance in the account. After one year the drivers need to pay 0.25% of amount from his account as insurance, if they saved $5000 then they need to pay $12.50 to Betterment. If anyone is leaving their job in Uber they can take their Betterment account with them.

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Nearly 600,000 U.S based drivers have already started saving in Betterment plan because Uber says it is more important. There are one-third of American employees who don’t have retirement savings or pension. Research shows that if people have retirement account then they can save more on this scheme.

A Spokesperson told that Uber has increased their position to win the contract because it has increased more popularity in the market through mobile apps like android, iPhone, iPad, Blackberry and Windows, in app there is more financial advices at lower costs. Betterment hasn’t shared any sign-up data, the company is prepared for 10,000 to 100,000 drivers can register per day.

Retirement plan is not something new but it already exists in the market. Lyft has already begun similar type of program for its drivers few years back in partnership with another investment and savings start-up namely Honest Dollar. Lyft drivers pay $3 per month for Honest Dollar retirement plan. Lyft is helping their drivers with life and health insurance, roadside assistance and other benefits to its driver.

Uber introduced retirement plan to its employees and got best awards from Senator Mark Warner of Virginia.

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