Lyft joins Uber to taking steps to close down in California over new labor rule
The CEO of ride-hailing application Lyft took steps to close down service in California, joining a comparative admonition made earlier this week by contending organization Uber.
The dangers to shutter service in the state come after a San Francisco Superior Court judge decided earlier this week that Uber and Lyft must classify drivers as representatives as opposed to independent contractors. The decision comes after California authorities’ endeavor to cause the organizations to conform to Assembly Bill 5, which upholds more limitations on worker classifications.
Lyft CEO John Zimmer said Wednesday on a call with investors that the organization may suspend tasks for comparable reasons Uber had refered to.
“If our efforts here are not successful it would force us to suspend operations in California. Fortunately, California voters can make their voices heard by voting yes on Prop 22 in November,” Zimmer said on the call, according to CNBC.
The judge allowed a 10-day remain for the decision, and Uber and Lyft said they intend to claim.
The organizations are additionally backing a measure that will show up on the voting form in California in November that excludes gig organizations, for example, Uber and Lyft, from Assembly Bill 5.
Uber CEO Dara Khosrowshahi said Wednesday on MSNBC he trusted the court would hold off on choices until after the election. If not, he said the organization would be compelled to stop its service for at least three months.
“We think we comply by the laws, but if the court finds that we’re not and they don’t give us a stay to get to November, then we’ll have to essentially shut down Uber until November when the voters decide,” he said.