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Uber Driver Challenge Is Early Test for ‘Sharing Economy’

Rooftop hire signs sit illuminated on taxis at a taxi rank outside Berlin Central railway station, in Berlin, Germany.
Photographer: Krisztian Bocsi/Bloomberg
Updated on

The most serious challenge to Uber Technologies Inc.’s “Be your own Boss” business model might also present an early test to the wider sharing economy as well as undermine its own $50 billion valuation.

The immediate battle comes Thursday in San Francisco, where Uber is seen as having a difficult task in persuading U.S. District Judge Edward M. Chen to block a lawsuit seeking to reimburse 160,000 California drivers for mileage and tips from proceeding as a class action.