Dara Khosrowshahi told MSNBC he would have to make the “really unfortunate” decision if the state’s court of appeals does not overturn or stay an order demanding the company reclassify its drivers as employees by next week. “If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” he said. (MSNBC, TechCrunch)

Talking point: This isn’t the first time the company has threatened to shut down as a bargaining tactic. In 2016, Uber and ride-hailing competitor Lyft left Austin after the city passed regulations requiring drivers to undergo fingerprinting and a criminal background check. The companies returned a year later after the state removed the requirement. In California, Uber, Lyft, DoorDash and others have spent over US$100 million gathering signatures for a voter initiative that would overturn the state law the court effectively upheld Monday; it is slated to appear on the ballot in November. Khosrowshahi said if Uber shuts down in the state until the vote it would lead to “a historical time of unemployment in California,” and that adhering to the law would lead to “a much smaller service, much higher prices, and probably a service that focuses on the centre of cities.”