California Ruling Seen Unlikely To Dent Value Of Uber, Other Start-Ups

[Ron Burgundy]

A California ruling requiring Uber to classify a San Francisco-based driver as an employee instead of an independent contractor could potentially change how sharing-economy companies operate, but it is unlikely to dent their value, investors said. If it holds up on appeal, the California Labor Commissioner's decision, which came to light last week, may have a limited impact on Uber and other companies that rely on networks of on-demand workers. "If they had to change (to) that, it would be just fine," said an Uber investor who declined to be identified due to sensitivity around the ruling.

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