Uber boss Dara Khosrowshahi says that Uber “will shut down for a while” in California if a Californian appeals court upholds a ruling that its drivers are employees and not independent contractors.

Uber and Lyft have co-sponsored a ‘ballot initiative’ in California – an initiative in some US states which allows a public vote to amend the law.

The initiative is to get divers recognized as independent contractors rather than employees.

In the UK last year the High Court ruled that drivers were employees, but the effect of the ruling was suspended while an appeal to the Supreme Court was made.

The Supreme Court heard the case in late July and is now considering its judgment.

Uber has around $10 billion in cash but has been burning cash at the rate of $3 billion a year for the last three years.

Last year Uber lost $8.5 billion.