California: Uber and Lyft shutdown seems inevitable – IOTW Report

California: Uber and Lyft shutdown seems inevitable

Verge: No Uber and Lyft rides in California? After a judge rejected the companies’ effort to delay an order that they classify drivers as employees, it seems inevitable. Uber and Lyft have until August 20th to comply with the order. But the companies have said they will need to go dark in the Golden State in order to retool their business.

The judges may not have the last word. Uber and Lyft are counting on California’s notoriously mercurial voters to help them circumvent AB5, which went into effect in January and makes it more difficult for companies to use independent contractors. Uber and Lyft built their respective businesses on the concept of using freelance drivers who aren’t eligible for traditional benefits like health insurance and paid leave.

Earlier this year, the companies, along with DoorDash, raised nearly $100 million to place a question on the November ballot. They succeeded, and this fall, voters will be asked to permanently classify ride-hailing drivers as independent contractors. The measure, called Proposition 22, also directs the companies to adopt certain labor and wage policies that fall short of traditional employment. more

3 Comments on California: Uber and Lyft shutdown seems inevitable

  1. Private car service owners seen licking their lips greedily.
    Apparently the home delivery side wasn’t part of the AG’s lawsuit, and that is the more profitable (or lower loss, actually) business, so they will continue to do that.
    AB5 may impact me, so I am hoping for a reversal. And it’s a terrible, anti-libertarian law anyway.

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