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Uber Might Temporarily End Service In California Over Law Classifying Drivers As Employees, CEO Says

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Chris White Tech Reporter
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Uber CEO Dara Khosrowshahi suggested Wednesday that the ride-sharing app will likely close down for several months in California if a court doesn’t overturn a ruling that changes the classification of the company’s drivers to full-time employees.

“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 in an interview with CNBC. The Uber executive was referring to a Monday preliminary injunction in which a judge prohibited Uber and Lyft from classifying drivers as independent workers.

Both companies would be required to provide benefits and unemployment insurance for workers under the injunction, CNBC reported. (RELATED: Uber Won’t Specify Whether Riders Will Be Notified After Riding With Driver With Coronavirus)