Transportation • Cars & Automobiles

Uber could pause ride-hailing in California if drivers become employees

The San Francisco Superior Court granted California’s request for a preliminary injunction saying that Uber and rival Lyft must make drivers employees rather than independent contractors. Judge Ethan Schulman delayed that order for ten days, giving the companies time to appeal, as both have said they will.

Dana Khosrowshahi, Uber CEO, stated: "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."

Uber and Lyft are pushing Proposition 22, a November ballot initiative that would keep drivers as freelancers entitled to some benefits and earnings guarantees.

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Card reviewed by: @christoph