Still, the best option to keep the business running during this pandemic.
Uber Eats has been fighting their business up to this day. The current pandemic challenges gave them the idea to create the Uber Eats. The company has been operating and will continue to operate in California by doing restaurant delivery and other allowed services.
On Monday, California Superior Court judge Ethan Schulman issued a preliminary injunction stating that Uber should classify their workers as employees and not independent contractors. This issued injunction gave Uber a 10-day deadline to take the toll. However, this does not mean that the newly created delivery business, Uber Eats, will also shut down.
Uber Eats Story
According to the Uber spokesperson, he confirmed that the state’s Superior Court-imposed Aug. 20 deadline to turn workers into employees only affects their ride-sharing business. The lawsuit filed by the state attorney general, along with Los Angeles, San Diego, and San Francisco district attorneys, focus, particularly on Uber drivers.
They also disseminated a press release explaining, “Uber’s misclassification of drivers deprives workers of critical workplace protections such as the right to minimum wage and overtime, and access to paid sick leave, disability insurance, and unemployment insurance.”
However, there is some legal pressure that could eventually affect food and other delivery services in the US. For the reason that there is a separate lawsuit from a San Francisco District Attorney against a restaurant delivery app that would like to put an end to independent contractors dropping off perishable goods.
Uber Announces Layoffs
The Coronavirus is definitely hitting startups hard, as Uber announces layoffs of 3,700 employees or around 14% of their 26,900 strong workforces.
Ruffin Chaveleau, head of Uber’s customer service, first delivered the news via a three-minute Zoom call to at least 3,500 employees last May 6. Most of the employees laid off are from CommOps and Recruiting roles.
They based the selection on a lottery, and the severance package is generous: 10 weeks plus paid healthcare until the end of the year. But a lot of employees are disgruntled at how the company handled the layoffs, especially that the layoffs are announced suddenly en masse.
Aside from the layoffs, the company has already implemented a hiring freeze to cut costs. Uber also announced that CEO Dara Khosrowshahi will forgo his base salary for the rest of the year, which amounts to US$1 million based on the 2019 figures, though the CEO earns most of his money from bonuses and stock awards.
But the cost-cutting plans have been revealed since April 28 wherein company executives have been planning to lay off a total of 5,400 employees, or 20% of its workforce. This move would save the company an estimated US$1 billion in labor costs. This report was paired with the resignation of Uber CTO Thuan Pham who is the longest-serving executive in the company since 2013.