against the on-demand car service app. U.S. District Judge Edward Chen decided Tuesday that the suit, originally brought by three California drivers, is a class action suit and can represent all 160,000 who drive for the company in that state, according to
Bloomberg. The decision puts into motion a major challenge to Uber’s business model, challenging Uber’s classification of drivers as contractors rather than W-2 employees. That categorization has enabled Uber to avoid standard employee costs—such as pay, benefits and expenses like gas—and that, according to business travel industry opponents, has given the service a competitive advantage over taxis and chauffeured car services.