If a recent court injunction isn’t reconsidered, it’s likely “Uber will shut down for a while,” CEO Dara Khosrowshahi said.
issued this week that directed rideshare companies to classify drivers in California as employees could result in Uber suspending operations in the Golden State for months, Uber CEO Dara Khosrowshahi told MSNBC on Wednesday....
“If the court doesn’t reconsider, then in California, it’s hard to believe that we’ll be able to switch our model to full-time employment quickly, so I think Uber will shut down for a while,” Khosrowshahi said., he said, in ways the company believes strengthens its case that they should be classified as independent contractors, with riders paying drivers directly and drivers able to set their own prices.
If the court doesn’t reconsider, Khosrowshahi said the plan is to suspend Uber operations until November, when California voters will vote on Proposition 22, which would classify drivers for apps like Uber as independent contractors but provide for some benefits, a move Khosrowshahi defended in aIf the court were to refuse a stay and California voters also shot down Proposition 22, it would result in Uber scaling down, ramping up prices and shifting its focus to operating in big city centers...
as independent contractors or employees. Both companies say they plan to appeal this week’s temporary injunction.
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