Uber may shut-down in California temporarily

…said CEO

Uber CEO Dara Khosrowshahi said that it would probably shut down the service for several months in case the court won’t overturn a recent ruling needing it to expect it to order its drivers as full-time workers. He stated it in an interview with Stephanie Ruhle on Wednesday. He added,“If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch ourmodel to full-time employment quickly.”

Both rival Lyft and Uber have almost a week left to bid a fundamental order allowed by a California judge on Monday that will deny the companies from proceeding to arrange their drivers as independent employees. Following the order will need Lyft and Uber to give advantages and unemployment insurance for employees. Both said they would appeal the ruling during the 10-day time before it becomes effective.

As opposed to group drivers being representatives, Khosrowshahi has pushed for what he calls a third way that would keep up drivers’ independence while permitting companies to give a few assurances without gambling being seen as full-time employers.

Khosrowshahi said on Wednesday that his Plan B in case of no winning of Uber on appeal wouldtemporarily pause service in California. While he said that in the state, Uber would later resume its services, it would probably be more focused in cities that actually could mean limited availability in less thought zones, for example, rural areas.

Khosrowshahi underlined that if they will pause service in the state would leave a huge number of drivers without the salary they would normally acquire from Uber. However, ridership has been down during the pandemic at any rate that the appointed authority said to create the directive come.

Becerra said that Any business model that depends on shortchanging workers to make it most likely shouldn’t be anywhere, whether its California or else place.

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