Uber CEO says the company will halt service in its home state of California for a few months if a judge’s groundbreaking ruling this week is upheld on appeal.
asked the judge to at least extend this hold period beyond 10 days while they begin the appeals process. Schulman is set to hold a hearing on this issue Thursday.
Khosrowshahi said that if the company is forced to adhere to the judge’s ruling, it would “take a significant amount of time” for the company to retool.He said the new version of Uber in California would result in “much smaller service, much higher prices,” harking back to the early days of Uber, when it was largely a private car service that operated nearly entirely in city centers.
“That’s a reality, so it’s not a game of chicken one way or another,” he said. “It’s really up to the courts and we’re going to comply with the law, and we will look to get going again.” Uber and Lyft save millions of dollars annually by classifying drivers as contractors. But by doing so, the judge found, they have been violating a 2018 California Supreme Court decision and a state law based on that ruling known as AB5. That law took effect on Jan. 1.
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