Uber to shut down in California over work title argument
Uber CEO Dara Khosrowshahi said Uber will shut down if court ruling isn’t reversed.
Mr Khosrowshahi makes reference to the recent ruling requiring immediate reclassification of its drivers as full-time employees.
It comes after the Californian courts ruled against Uber’s business model which relies on classifying drivers as “independent contractors.”
The court argued that Uber drivers do not get ay additional benefits which come with working for a company.
“We think the ruling was unfortunate. We respect, obviously, the law and the court and the judge,” Khosrowshahi said.
“If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly, so I think Uber will shut down for a while.”
Khosrowshahi warned Uber may have to shut down until November, when voters will choose to accept or reject Proposition 22, a $110 million referendum led by Uber and backed by a coalition of gig economy companies to save their business model.
Proposition 22 is meant to give drivers more protections while allowing Uber to still minimize labor costs.