Uber Will 'Shut Down' in California If It Must Classify Drivers as Employees

Published by VICE.COM

Summary generated on August 13, 2020

    In a Wednesday morning interview with MSNBC's Stephanie Ruhle, Uber CEO Dara Khosrowshahi said Uber would likely shut down temporarily if it failed to appeal a recent ruling requiring immediate reclassification of its drivers as full-time employees.

    In the interview, Khosrowshahi warned Uber may have to shut down until November, when voters will choose to accept or reject Proposition 22, a $110 million referendum led by Uber and backed by a coalition of gig economy companies to save their business model.

    The MSNBC interview is the latest in a round of public relations initiatives Uber has undertaken in order to beat back encroachments on its business model and propose alternatives to classifying drivers as employees.

    The company's tooth-and-nail fight to convince lawmakers and the public hinges on the idea that Uber likely would not survive as a juggernaut if it had to treat drivers like other companies treat their employees.

    More than 5,000 Uber and Lyft drivers in California have collectively filed over $1.3 billion in wage claims.