Uber has told New York’s Metropolitan Transportation Authority it will close “disastrous” escort business it has been running for nearly a decade.
The company said Monday that it is moving to shut down its escort business in the borough of Queens after more than three years.
Uber said in a statement it had hired an outside law firm to help with the transition.
Uber is the first major ride-hailing company to announce plans to close the business.
“We will never be able to fully support the incredible people and work we’ve built over the past decade, but it’s time to make the difficult decision to stop this abusive business and its abusive and damaging culture,” Uber said.
Uber, which has a fleet of at least 8,000 drivers in New York, operates in 20 countries, including the United Kingdom and Australia.
New York has been among the cities where Uber drivers have been subjected to lawsuits and other legal actions by drivers who say the company has treated them poorly.
Earlier this year, the city settled with Uber over allegations of sexual harassment and discrimination in the workplace.
In December, Uber agreed to pay $25 million to settle a federal investigation into whether it failed to protect drivers and employees from sexual harassment.
Uber has also been under investigation for alleged labor violations in New Jersey and Virginia.