The ruling is a defeat for labor unions and allies in the state Legislature who passed a law in 2019 requiring companies like Uber and Lyft to treat drivers as employees.
Delaware State Police are still trying to identify the driver, who fled the scene.
Footage of driver James Bode telling a passenger to "get out" has been watched millions of times on social media.
Uber said it planned to appeal, setting up a fight that could likely end up in the California Supreme Court.
“We have to make it easier and more convenient for all Americans to get vaccinated,” President Joe Biden said.
Cops are pursuing two women after shocking video shows them assaulting an Uber driver in a violent, expletive-laden tirade.
Drivers and the SEIU are trying to overturn Prop 22, which exempted Uber and Lyft from state law saying drivers should be owed benefits and protections.
A California ballot measure could exempt Uber, Lyft and others from the law, allowing them to keep drivers as contractors without benefits.
Uber, Lyft and others have spent over $185 million on a campaign to exempt them from a California law that would make drivers employees with benefits.
How organized labor is teaming up with app-based workers in California to take on corporate giants.