In another sign that a new law in California could force dramatic changes to ride-hailing in the state, Uber Technologies Inc. said it’s considering licensing the brand to independently operated franchises. The move would create distance between the ride-hailing company and its drivers and would serve as an alternative to classifying them as employees.
Uber said the model would look similar to its black-car operations in the early days. “Drivers would likely earn a predetermined hourly wage for their time on-app, but in exchange, fleets would likely monitor and enforce drivers’ activity and efficiency, for instance by putting drivers into shifts, dictating where and when they drive, and enforcing trip acceptance criteria,” Matt Wing, a spokesman for Uber, wrote in an email. “We are not sure whether a fleet model would ultimately be viable in California.”
The internal discussions were reported earlier Tuesday by the New York Times. The newspaper also said Lyft w…