Is this the end of Uber?
Everyone's personal driver, Uber could be ending due to a ruling in California recently.
Californian regulated ruled that a driver for the ride-sharing service was an employee, not an independent contractor, which changes everything.
However this is a HUGE issue because the global tech start up's business model relies on third party contractors to provide its on demand cab service!
If drivers are no longer independent contractors, the business model will no longer work.
The Californian panel expressed their concern that Uber is run as a mobile platform that connects drivers with riders instead of a cab service which frees it from responsibility of its drivers.
An Uber representative has been reported saying that the ruling has been appealed in court and would only apply to the one driver in California that was involved in the hearing..
But we think this could be opening a can of worms and that Uber is responsible for too many people to not be officially employing them.
Uber is one of the world's most valuable start-ups worth around $50 billion dollars.