London is one of Uber's largest markets, which makes any legal pressure there a big deal. But Uber faces other challenges as well. The company has received numerous lawsuits from drivers who want to be classified as employees instead of their current status as independent contractors. The latter allows for more flexibility for drivers but doesn't provide them with benefits including health insurance. Uber in March reached a settlement with drivers from Massachusetts and California, agreeing to pay out $20 million without changing their status. Uber faces further regulation when it comes to driver wages. The New York City Taxi and Limousine Commission recently issued new rules for ridesharing companies that require drivers to receive a minimum hourly wage of $17.22. Regulations like this aren't likely to end anytime soon, and new rules could change how Uber runs its business and how much money it's able to earn. What investors should remember Admittedly, Uber has a lot going for it.