To the United States, the world leader in Car reservation with driver (VTC), Uber has engaged in a standoff with the State of California. Indeed, the Californian authorities have called on Uber to review the status of drivers registered on its platform and to requalify them as employees. Uber officials were given 10 days to enforce this new law. It should be noted that this recent decision taken in California also concerns Uber’s rival namely Lift.
The two giants of the VTC have decided to unite to block this court decision. The new law has been in force for several months, Californian legislation thus wishes to constrain companies who work with many contract workers to redefine their mode of operation. This law will make it possible to give the status of employees to independent drivers who will then have the possibility of receiving unemployment benefits and other social benefits. For the boss of Uber, sir Dara Khosrowshahi, his platform is already in phase with the law and he does not understand why the justice of California says otherwise.
Uber is not ready to abdicate
Dara Khosrowshahi will affirm that if the justice does not postpone the deadline at least until November, Uber will have to cease all activities until voters end the negotiations. Indeed, Uber intends to organize a referendum in November 2020 to cancel the Californian text. “It is a model that we have built over more than ten years. We cannot hire tens of thousands of people overnight ” notified the boss of Uber who thinks he can win the case. Uber and Lyft have also indicated that surveys have clearly shown that many independent drivers prefer the old model which has various advantages.
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