Wednesday, August 12, 2020

Uber Threatens To Shut Down Service In California

Uber has threatened to shut down its service entirely in California, for at least a "several months", after a California superior court judge ordered both Uber and Lyft to reclassify its drivers as employees. In an interview on MSNBC, Uber CEO Dara Khosrowshahi said that "it's hard to believe we'll be able to switch our model to full-time employment quickly," saying that it would have to shut down its on-demand ride service in California "for several months" if the court doesn't overturn its ruling that classifies drivers as full-time employees. The ruling is scheduled to go into effect in ten days. The lawsuit was brought against Uber by California Attorney General Xavier Becerra, along with city attorneys from Los Angeles, San Diego and San Francisco, to force Uber and Lyft to comply with AB5.