(Bloomberg) – Uber has agreed to shell out at as much as $100 million to drivers in California and Massachusetts to settle a class-action lawsuit. For many startups, a payout of that size would be a big setback. But some seasoned Uber drivers consider it a victory for the ride-hailing company.
Ezra Dubroff, an Uber driver in Los Angeles since November 2013, had hoped the case would go to trial and set a legal precedent. He and other drivers say the settlement folded on the suit's central claim — that Uber drivers should be classified as employees, not independent contractors, entitled to such protections as a minimum wage, Social Security and health benefits.
Instead, he says, the deal is being interpreted as a big win for Uber — a contention widely shared by analysts who say the outcome is a significant boost for the company and the so-called gig economy. In the court of public opinion, Dubroff says, "People think this is done with and that Uber is right."
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