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California just dealt an uber-sized blow to Uber.
The ride-hailing app, whose profitability depends in part on treating its drivers as independent contractors without healthcare or other benefits, now has to treat all drivers as full employees. California's Labor Commission made the ruling, according to a filing this week. The ruling potentially upends Uber's business model and setgsa bold precedent for similar startups in the on-demand economy. In the ruling, the commission refutes Uber's claim to be nothing more than a "technological platform" that acts a middle man between drivers and passengers, arguing that Uber is "involved in every aspect of the operation," including vetting drivers, tracking user ratings, negotiating fees and more.
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