Uber uses usual stall strategy as court rulings don’t go its way

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As Uber drivers fight to become classified as employees, Uber says it will have to shut down in California rather than comply

Kansas City/Arlington — Uber Technologies CEO Dara Khosrowshahi’s warning that the company may have to temporarily shut down in California is a textbook strategy for the ride-hailing giant: when adverse court rulings hit, appeal to the public for support and seek to delay regulatory action.

If voters don’t provide a reprieve, Uber’s goal is to keep appealing court rulings as long as it can, according to lawyers and professors who’ve watched the company manoeuvre through regulatory crises for a decade. In London, where Uber is embroiled in a similar fight to keep its drivers from being reclassified as employees, the battle is now in its fifth year — with the UK’s highest court expected to issue a final decision soon.

Travis Lenkner, a lawyer who represents workers against gig companies ... noted that the ruling faulted the companies for a ‘prolonged and brazen refusal to comply with California law’ Uber and Lyft are set to ask the judge to keep the ruling on pause for the duration of the appeals process at a hearing on Thursday. Uber and Lyft didn’t respond to requests for comment about their legal strategies.

“Their arguments aren’t succeeding,” he said. “The only thing that has been moderately successful is the stall game.”

 

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