Uber may be forced to raise prices due to regulation of precarious employment by the European Union, according to a regional top manager at the ride-hailing company.

In a recent interview with the Financial Times, Anabel Diaz, who oversees Uber's European business, said that if the EU requires Uber to reclassify contract workers as employees, it could lead to an increase in regional prices and even ending services in hundreds of European cities.

Diaz warned that prices could rise by up to 40% in some markets if Uber has to provide benefits like minimum wages, paid time off and unemployment insurance to drivers currently classified as independent contractors. The changes would make rides less affordable for consumers, she said.