Uber Technologies (NYSE: UBER) will likely temporarily halt its ride-sharing service if it will be compelled to comply with the recent court decision that it must reclassify its drivers as employees.
In an interview with MSNBC’s Stephanie Ruhle on Wednesday, Uber CEO Dara Khosrowshahi said the company will likely stop its ride-sharing service for three months.
According to him, “We think we comply by the laws, but if the court finds that we’re not and they don’t give us a stay to get to November, then we’ll have to essentially shut down Uber until November when the voters decide.”
He added that Uber needs a “significant amount of time” to modify its current business model in which drivers are classified as independent contractors.
Uber prices will likely become higher in California
Furthermore, Khosrowshahi commented, “It would be really unfortunate at a historic time of unemployment in California. It would put vast swaths of our drivers out of work.”
Moreover, Khosrowshahi said the court’s ruling if not overturned will result in Uber having a “much smaller service, much higher prices” in California.
