Uber’s business model at risk after recent lawsuit

The most recent class-action lawsuit against Uber will put the company facing an uphill battle to maintain its business model. The lawsuit claims Uber are using their full-time employees as contract workers without providing them with employee benefits.

Uber’s platform model is to connect drivers to customers without using a direct hire service similar to that of taxis. If Uber loses this case, then the company will have to compensate their drivers like regular employees.

We’ll have to wait and see how Uber decides to appeal this case.

 

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