Big Changes To Come As Uber Tries To Safeguard Its Business Against California’s Gig-Economy Law
Uber is facing an existential threat to its business model—California’s newly enacted Assembly Bill 5 (AB5). Uber and other app-based technology companies that built their business models on the backs of independent contractors now need to quickly reinvent themselves.
Lawmakers in California and other states are accusing Uber and other tech companies of trying to exempt themselves from laws by classifying their workers as contractors under false pretenses.
Regulators contend that they should be considered employees and afforded all requisite rights and privileges. In response to the new law, Uber is quickly making changes. These test-case alterations are an attempt to circumvent the current law.