Uber has agreed to pay $100 million (£70m) to settle a case over whether drivers should be categorised as employees or contractors.

Uber classifies its drivers as independent contractors, meaning they are not entitled to typical employee rights. Drivers in the US took launched legal action against the taxi-booking app, which already has a long list of controversies surrounding it in its few years of existence.

The settlement means drivers will remain independent contractors, but Uber boss Travis Kalanick admitted that Uber hasn't "always done a good job working with drivers", and added that "it's time to change".

Critics have expressed their disappointment that the case was not brought to trial. Shannon Liss-Riordan, one of the lawyers representing the drivers, said she was disappointed but recognised that there was a "significant risk of losing" if the case did go to trial. She did stress, however, that the settlement does not mean a court can rule that Uber's drivers are employees, and not contractors, in the future.

Mr Kalanick said: "Drivers value their independence - the freedom to push a button rather than punch a clock, to use Uber and Lyft simultaneously, to drive most of the week or for just a few hours."