Emerging Platform Work in the Context of the Regulatory Loophole (The Uber Fiasco in Hungary)

TL;DR

This paper analyzes the rapid growth of platform-based work, focusing on Uber's failed market entry in Hungary and highlighting regulatory challenges and labor law dilemmas in this evolving sector.

Contribution

It provides an in-depth examination of the regulatory and employment issues in platform work, using Uber's Hungary case to explore legal and institutional challenges.

Findings

Uber's market entry failed due to regulatory hurdles

Platform work blurs traditional employment boundaries

Labor law enforcement faces significant challenges in digital platforms

Abstract

The study examines the essential features of the so-called platform-based work, which is rapidly evolving into a major, potentially game-changing force in the labor market. From low-skilled, low-paid services (such as passenger transport) to highly skilled and high-paying project-based work (such as the development of artificial intelligence algorithms), a broad range of tasks can be carried out through a variety of digital platforms. Our paper discusses the platform-based content, working conditions, employment status, and advocacy problems. Terminological and methodological problems are dealt with in-depth in the course of the literature review, together with the 'gray areas' of work and employment regulation. To examine some of the complex dynamics of this fast-evolving arena, we focus on the unsuccessful market entry of the digital platform company Uber in Hungary 2016 and the relationship to institutional-regulatory platform-based work standards. Dilemmas relevant to the enforcement of labor law regarding platform-based work are also paid special attention to the study. Employing a digital workforce is a significant challenge not only for labor law regulation but also for stakeholder advocacy.