California ruling seen unlikely to dent value of Uber, other start-ups

If it holds up on appeal, the California Labor Commissioner's decision, which came to light last week, may have a limited impact on Uber and other companies that rely on networks of on-demand workers. "If they had to change (to) that, it would be just fine," said an Uber investor who declined to be identified due to sensitivity around the ruling. The expenses that would stem from classifying drivers as employees, including paying workers’ compensation, Social Security and other costs, could be offset to a large extent by the lower wages Uber could pay to drivers compared with contractors, the investor argued.

California ruling seen unlikely to dent value of Uber, other start-ups source: http://finance.yahoo.com/news/california-ruling-seen-unlikely-dent-051240672.html