Uber employs its drivers as third-party contractors, operating as a logistics company. Uber has argued that it is not a transportation or taxi company, but rather a software platform that matches customer demand with supply. The ruling turns Uber into a transportation startup instead of a logistics software company. It is now in a position to face a number of legal obstacles, as well as rising costs of employing those drivers directly and offering them employee-related benefits.
Uber v. Berwick.