Uber CEO says its service will probably shut down temporarily in California if it's forced to classify drivers as employees

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JUST IN: Uber CEO Dara Khosrowshahi says a temporary shutdown of the app in California is possible.

Uber would likely shut down temporarily for several months if a court does not overturn a recent ruling requiring it to classify its drivers as full-time employees, CEO Dara Khosrowshahi said in an interview with Stephanie Ruhle Wednesday on MSNBC.

Uber and rival Lyft both have about a week left to appeal a preliminary injunction granted by a California judge on Monday that will prohibit the companies from classifying their drivers as independent workers. If the appeal doesn't work out for Uber, it will bank on voters to determine its fate in voting on on Proposition 22, which would exempt drivers for app-based transportation and delivery companies from being considered employees.

Uber Technologies CEO Dara Khosrowshahi outside the New York Stock Exchange ahead of the company's IPO, May 10, 2019.would likely shut down temporarily for several months if a court does not overturn a recent ruling requiring it to classify its drivers as full-time employees, CEO Dara Khosrowshahi said in an interview with Stephanie Ruhle Wednesday on MSNBC.

"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," Khosrowshahi said.

 

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Temporary. Nah they done with CA. CA can go eff itself.

Ok someone else will fill the gap,no slaves and masters.

Meanwhile a competitor says okay and takes to the LA market in their stead with verifiable employed drivers, insurance and already established taxation laws... Here's your chance Taxi companies.

CA is brilliant, so now if they shut down none of the Uber drivers will be able to make any money and will not generate any tax revenue.

Good give the liberals what they vote for. Maybe they will rethink

California 'drives' another business out of the state.

Now all the the Uber workers are not gonna have jobs. Great lawsuit!!! 🤦🏿‍♂️

The thing that annoys me is prop 22 would give exemption to ride share companies, but if the law is so bad ride share companies need an exemption, then what about all the small businesses? They don’t get any exemption.... only the bug tech guys that can lobby for it

incarceratedbob I don't understand the hate for uber. Are people under the impression that drivers are forced to offer this service? I'm confused.

Oh well. There are these things called cabs

California just wants there taxes. This has nothing to do with drivers 'rights'. Drivers use their own equipment, set their own hours and pay their own expenses. It's no different than a home improvement contractor, pool or lawn service or a real estate agent.

Not willing to pay minimum wage, but happy to spend millions and millions paying people off and avoiding laws and regulations!!! Vile company

It's like MLB owners claiming they're broke.

$uber $Lyft nothing more than taxi dispatchers, therefore they should be regulated accordingly. UberLyft exploit drivers to subsidize operations & taxpayers subsidize benefits otherwise covered by employers. As ICs UberLyft not liable for accidents, assults, negligence by drivers

I’ve always preferred Lyft tbh

Very wise move on the chess board!

Shutting down service (during a pandemic, when demand is down anyway) will be both bad PR, and a boon for the standard Taxi industry.

Dems ruin everything. Take the bus and never vote for them again

Looks like ripping drivers off for years has reached a peak.

Shut him down all over the state the ripping of customers they keeping all the profits drivers barely make it after the expense of rent gas call Insurance shut them all out until they raise the prices for drivers

More people will be out of their jobs. Great job CA government in killing jobs.

Democrats have destroyed California.

Lets not forget that the more regulations and costs are passed onto the riders? Plus alot of poorer communities use uber lyft to get to job opportunities out of the area they are from. impactxcapital MichaelAJaxson 1aliquippa McKeesRocksCDC roycejonesnews

No way I'm the only one with no car

For the wrong reasons

Good because 1099 gig bs shxt is a big reason for the current discontent.

Flash430 So threaten the state of CA by shutting down your revenue stream. CEOs clearly deserve millions for this brilliance.

No shutting down

Good if they can’t afford labor costs, like the rest of us, then maybe it’s a business model that shouldn’t exist?!

UBER UP 2 PER CENT ....

fsmcruz sua cara! hahahahhaha

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