A California ruling that requires Uber to classify a San Francisco-based driver as an employee instead of an independent contractor could potentially change how sharing economy companies operate. However, it is unlikely to dent their value, investors said.

According to Reuters, if it holds up on appeal, the California Labor commissioner’s decision, which came to light last week, may be limited impact on Uber and other companies that rely on networks of on-demand.

That’s because the benefits of treating workers as contractors rather than employees are more important in a start-up’s early days and less so now that Uber and many similar companies have grown, investors say.

Smaller companies need more flexible workforces, and contractors solve that problem. In contrast, larger companies with more predictable demand for their products or services can benefit from having employees scheduled to work regular shifts.

A Uber investor who declined to be identified due to sensitivity over the ruling said, “If they had to change (to) that, it would be just fine.”

The expenses that would stem from classifying drivers as employees, including paying workers compensation, social security and other costs, could be offset to a larger extent by lower wages Uber could pay drivers compared t contractors, the investor argued.

James McQuivey, an analyst at Forrester Research, who has studied the sharing economy for several years, said, “ This problem can be routed around.” He further stated that he does not see any immediate hit on Uber’s valuation as a result of the ruling.

Uber is currently valued at more than $40 billion, making it the most richly valued venture-backed company in the U.S.

Uber, has however appealed the ruling to a state court in Columbia.

The companies chief executive, Travis Kalanick, said in a speech earlier this month that in San Fransisco alone Uber has 22,000 drivers.

The California ruling applies only to one driver, but the state often sets a path followed by regulators and courts elsewhere.

Jeremy Levine, a venture capitalist at the Bessemer Venture Partners, whose portfolio includes several companies said that “We are nowhere near fear land now,” but added. “ As a litany of not-so-positive news happens, we may see that shift.”