The new labor law in California may lead to significant changes in Uber’s ride sharing business in the state. The company said it was recently considering licensing its brand to independent franchised merchants. This could open up the relationship between Uber and its platform drivers, or as an alternative to classifying drivers as company employees. The model looks a bit similar to the company’s early black car operations, Uber said. “Drivers can be paid for their application work at a pre-determined hourly rate, but in exchange, fleet merchants can also monitor and manage drivers’ activities and efficiency, such as requiring drivers to work overtime, specifying their driving time and route, and improving travel completion standards,” Uber spokesman Matt Wen said “We are not sure whether the fleet merchant model will eventually work in California,” wing wrote in the email < / P > < p > in addition, competitor LYFT is reported to be exploring a similar model. A LYFT spokesman said the company was exploring “alternative models,” but declined to discuss details. < p > < p > California plans to implement a new state law this year that requires companies to provide employee benefits to workers who contribute to the company’s core business. According to the law, sharing companies need to provide drivers on the platform with minimum hourly wage protection and various other benefits. To this end, Uber and LYFT are actively exploring alternative models for continuing operations in California. Both companies say the change will put a lot of pressure on their business models and that the law goes against the wishes of many drivers. The state’s < / LyP > has made a lot of adjustments to the state’s marketing and other laws. However, franchising may not solve the problem. For example, the number of existing fleet merchants is insufficient to meet the needs of users throughout California. This may mean that Uber and LYFT may stop operating in other markets except for larger markets, and taxi prices will also rise significantly.