Betterment has announced that it will provide Uber drivers with individual retirement accounts. The accounts will be free for the first year, after which Betterment's normal fee of 25bps will kick in.
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Betterment wins Uber account from under the nose of its Silicon Valley robo-rivals
Uber first contacted Betterment as part of an effort to make driving as “rewarding and stress-free” as possible for its workers, says Uber spokesman Michael Amodeo. In recent months, Uber has been stepping up its perks, for example providing free streaming of Pandora. Uber has also established various discounts for car maintenance at dealerships and car washes nationwide. But Uber has come under fire for what its drivers see as inadequate compensation. Drivers are 1099 contract employees and, as such, don’t receive benefits. The California Labor Code requires businesses to pay employees minimum wage and overtime pay and to reimburse them for reasonable business expenses, such as gas and vehicle maintenance. Independent contractors, by contrast, are responsible for their own expenses. Uber drivers must maintain their vehicles and pay car insurance and other fees associated with the vehicles.
