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  • Writer's pictureRicha Shetty

Uber CEO Threatens Future Shutdown in California

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc also known as Uber who provide vehicles for rent., threatened to temporarily shut down service in California if it loses a drawn-out fight over a state law seeking to reclassify contractors as employees. Before then, Uber will continue a lengthy political and legal battle it has been waging since before the law was enacted this year. The company said it will appeal a court ruling Monday saying it must reclassify drivers as employees, and then it will ask voters in November to overturn the law. Know more about COVID Impact on Toyota's Quarterly Profits: (Lowest in 9 years, Car Sales Down 50%)

Uber CEO Threatens Future Shutdown in California

Labour Law leads to a Tough Call for Uber in California:

  • Many regular drivers are hoping to secure the same health and unemployment benefits afforded to other workers in the state. But Uber has said the labor law threatens to shut down the entire gig economy by substantially raising companies’ expenses. A person familiar with Uber’s deliberations described a potential shutdown in California as a last resort.

  • Khosrowshahi made his comments in a television interview Wednesday on MSNBC. “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,” he said.

Uber is asking the judge who issued the injunction to hold a hearing on Thursday for Uber to request that Monday’s order be put on hold for the duration of the appeals process, according to a filing in San Francisco state court. Explore more about fleet Outsourcing?

Is Uber Failing all over Europe:

While it might initially sound like a naive question, it might yet be worth asking. You see, Uber does not only have problems in France. Or only in Germany. Or Norway. The company is struggling all over Europe, and in most cases, it’s for the very same reason. American journalist Elias Isquith was one of the first to comment on why Uber appears to be massively failing in Europe: “I’d say it’s the result of a basic error the folks running Uber keep making,”

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