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Uber could stop ride-hailing service in California if court ruling takes effect

(Reuters) — Uber could be pressured to close down its ride-hailing operations in California if a courtroom ruling that blocks it from classifying its drivers as impartial contractors is going into impact, the corporate stated in a courtroom submitting.

A California pass judgement on on Monday granted the state’s request for a initial injunction blockading Uber and rival Lyft from classifying their drivers as impartial contractors quite than workers.

A number of hundred thousand “gig” employees, together with many at ride-hailing firms and app-based meals supply products and services, are suffering from the legislation referred to as Meeting Invoice five (“AB5”), which took impact on Jan. 1.

The shutdown would irreparably hurt Uber and the individuals who depend on its rides operations to generate source of revenue, the corporate stated in its courtroom submitting on Tuesday.

“If the courtroom doesn’t rethink, then in California, it’s arduous to consider we’ll have the ability to transfer our style to full-time employment temporarily,” Leader Government Officer Dara Khosrowshahi used to be quoted as pronouncing through CNBC on Wednesday.

(Reporting through Ayanti Bera in Bengaluru; Enhancing through Maju Samuel)

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