Bloomberg Tax
Aug. 18, 2020, 4:46 PM

Uber Considers Franchising in Response to California Labor Law

Joshua Brustein
Joshua Brustein
Bloomberg News

In another sign that a new law in California could force dramatic changes to ride-hailing in the state, Uber Technologies Inc. said it’s considering licensing the brand to independently operated franchises. The move would create distance between the ride-hailing company and its drivers and would serve as an alternative to classifying them as employees.

Uber said the model would look similar to its black-car operations in the early days. “Drivers would likely earn a predetermined hourly wage for their time on-app, but in exchange, fleets would likely monitor and enforce drivers’ activity and efficiency, for instance by putting drivers into shifts, dictating where and when ...

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