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# Uber loses key legal fight, which could hurt its business model in the U.K. and hit gig-economy companies

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Uber loses key legal fight, which could hurt its business model in the U.K. and hit gig-economy companies
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Uber lost a key court ruling on Friday, which could hurt its business model and move the stock in one of its biggest international markets

Uber lost a key court ruling on Friday, which could hurt its business model and move the stock in one of its biggest international markets.

The U.K.’s Supreme Court has decided that drivers of the ride-hailing app should be classified as workers, which means they are entitled to holiday pay and the minimum wage.

In early premarket trade, Uber shares fell over 3%.

The crucial ruling has broad implications for the so-called gig economy and could mean Uber
UBER,

-2.98%

faces large compensation claims.

The case about the employment rights of Uber drivers is similar to one brought to the courts in California last year.

It comes just months after Uber won an appeal allowing it to continue to operate in London, its biggest European market, over concerns about its safety practices.

Rupert Steiner

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