Uber Weighs California Overhaul if Ballot Measure on Workers Fails
20 Oktober 2020 - 07:14PM
Dow Jones News
By Preetika Rana
Uber Technologies Inc. is considering overhauling its business
in California if voters defeat a ballot measure that would prevent
the ride-hailing company's drivers from being classified as
employees.
"We are looking at all our options," Uber Chief Executive Dara
Khosrowshahi said, without elaborating, during The Wall Street
Journal's annual Tech Live conference, held remotely on Tuesday.
"We will do our best to operate in California...Where in California
we will operate is a question mark, and the size and scale of
business will be a big question mark," he said.
The state implemented a law on Jan. 1 that seeks to reclassify
ride-share and food-delivery drivers as employees, making them
eligible for minimum wage, sick days and health insurance. Uber,
Lyft Inc., DoorDash Inc. and others have collectively raised around
$200 million to promote a ballot measure -- the most expensive in
California's history -- on Election Day that asks voters exempt
them from the law.
Uber and its peers have said that the law would force them to
make drivers work pre-scheduled shifts, robbing them of the
flexibility they currently enjoy. Uber has said it would be able to
hire just a fraction of its more than 200,000 drivers. Mr.
Khosrowshahi on Tuesday said prices for consumers would rise
between 25% and 100%.
"These are not made-up estimates," he added.
Uber's core ride-hailing service has been battered during the
pandemic, while its smaller food-delivery business has soared.
Global rides volume was down 50% year-over-year last month, Mr.
Khosrowshahi said, with Hong Kong leading its recovery.
Uber's food-delivery bookings more than doubled in the second
quarter of the year, and Mr. Khosrowshahi said the business
continues to see growth "well over 100%."
Uber reports third-quarter results on Nov. 5, days after the
election.
Write to Preetika Rana at preetika.rana@wsj.com
(END) Dow Jones Newswires
October 20, 2020 12:59 ET (16:59 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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