Is Uber Shutting Down Temporarily?

The CEO of Uber, Dara Khosrowshahi has on Wednesday 12, August, 2020 said that, his outfit is likely to close down temporarily for a while if a court doesn’t rescind the decision expecting it to classify its drivers as full-time employees.

An order was put on both mobile vehicle ride applications, Uber and Lyft about seven days back, to make their drivers permanent workers. The two outfits have about seven days left to appeal a fundamental order given by a California judge in the United States. The order will in this way forbid the organizations from characterizing their drivers as free laborers.

In light of the decision by the court, if the appeal doesn’t work out for Uber, it will depend on voters to decide its destiny in deciding on Proposition 22, which would absolve drivers for application based transportation and conveyance organizations from being viewed as workers.

Dara Khosrowshahi, CEO of Uber

According to the CEO Dara Khosrowshahi, in the event that the court neglects to reevaluate the decision, then they wouldn’t have the option to change their model to full-time business as soon as possible.

Uber and Lyft both have about seven days to appeal the order by the California judge. If not, then the decision will deny the organizations from proceeding to classify their drivers as autonomous drivers. That said, if it chooses to pass by the order, then they would’ve to be prepared to give benefits including human services and insurance for all its workers.

California’s attorney general and three other city lawyers brought the claim against the organizations under the state’s new law, Assembly Bill 5, that aims to give benefits to gig workers core to an organization’s business by grouping them as workers.

In his decision allowing the fundamental directives, the appointed authority dismissed the thought that drivers ought to be considered outside the course of the’s organizations, calling the rationale very mean.

Notwithstanding, as per the Uber CEO, if they lose the appeal which is being taken a shot at within the next ten days, then they would briefly stop services in California State.

Uber has however contended that, its drivers incline toward working as independent contractors, yet California AG Xavier Becerra dismissed that assertion as an unmerited contention.

Khosrowshahi stressed that stopping services in the State would leave a large number of drivers without pay they would regularly earn from Uber.

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