Faculty News
Professor Arun Sundararajan comments on Uber's legal settlement to keep drivers classified as independent contractors
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Excerpt from Bloomberg -- "As far as Uber is concerned, this is a big win for them. As you've pointed out, Uber's bigger source of valuation risk is uncertainty around worker classification. This is a big step in the direction of Uber being able to put that issue aside, and as a consequence, I think that the $100 million, they're going to make up multi-fold through an increase in their valuation. I think overall, this is good for the sharing economy. I'm sure there are situations in which it makes sense to classify sharing economy providers as employees. But with Uber drivers and Lyft drivers; I don't think this is one of those cases. I do think, however, it's really important that we start to think about a way in which we can fund benefits for these drivers and for other providers in the sharing economy. It's not all going to come from Uber. It's not all going to come from the government. It's not going to come from the drivers themselves. There has to be a partnership model."
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Additional coverage appeared on Marketplace.
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Additional coverage appeared on Marketplace.