Uber continues to assert its service is a convenience for drivers while governments start to crackdown. The British ruling, which requires Uber provide a minimum wage per hour, is an existential threat to the company’s argument. What’s the immediate impact of this decision? It could further erode the valuation of existing Uber shareholders’ stock in the SoftBank deal. If Uber doesn’t complete that raise, its value will sink back toward where Lyft’s is currently, because Lyft is growing faster now.
“Over the last year we have made a number of changes to our app to give drivers even more control,” said Uber UK’s Acting General Manager Tom Elvidge in a statement. “The main reason why drivers use Uber is because they value the freedom to choose if, when and where they drive.”