In a standoff with California courts, ride-hailing companies Uber and Lyft have threatened to shut down operations in the state if forced to reclassify their drivers as employees, as mandated by new law AB 5. Both companies have appealed a state judge’s order to reclassify their drivers, but without a stay of the ruling, they must comply with state law by Friday at midnight. Internally, both companies are reportedly exploring franchise-like business models, similar to what Uber already does in Germany and Spain, as an alternative way to continue operating in the state. The companies are also eyeing the November election where Proposition 22, which would exempt Uber and Lyft from California’s new employee classifications, will be on the ballot. We'll discuss what's at stake and we want to hear from you: how would you be affected if ride-hailing services shut down in California?
Uber and Lyft Threaten to Suspend Operations in California
Toyota Prius Hybrid vehicle offering rides for UBER and LYFT in San Francisco Bay Area (iStock)
Kate Conger, technology reporter, The New York Times