Uber says it will give its 70,000 UK drivers a guaranteed minimum wage, holiday pay and pensions.
The ride-hailing giant said all drivers would earn at least the National Living Wage, which is £8.72 an hour.
It comes a month after it lost a legal battle in the UK over drivers’ status.
Uber said it showed it was “willing to change” and fares were unlikely to rise because of the change in conditions.
Writing in the Evening Standard, Uber’s chief executive Dara Khosrowshahi said: “This is a significant improvement in the standard of work for UK drivers. But I know many observers won’t pat us on the back for taking this step, which comes after a five-year legal battle.
“They have a point, though I hope the path that we chose shows our willingness to change.”
In last month’s Supreme Court hearing, Uber had argued it was a third-party booking agent, and its drivers were self employed.
But the court ruled its drivers were workers, a category that means they are entitled to minimum legal, holiday and pension rights.
The company is being challenged by its drivers in multiple countries over whether they should be classed as workers or self-employed.