Uber and Lyft threaten to pull out of California by end of Week.
Uber and Lyft are considering shutting down rideshare services in their home state of California as a result of an ongoing legal battle over classifying their drivers as employees, instead of independent contractors. Earlier on, Lyft released this statement via their Instagram page:
The car-hiring services also added that, while rideshare options will not be available, customers are still able to rent scooters or cars (alternative transpirtation options) from the company in some 57 places like Los Angeles County.
According to Lawmakers, the new law would give better pay and sick leave to Lyft and Uber workers. The companies disagree.
Lyft makes statement
In an announcement, Lyft outline the following results as the consequences of the new law on driver’ status:
• Passengers, especially in suburban and rural areas, would experience reduced service.
• 80% of drivers would lose work and the rest would have scheduled, hourly capped shifts.
•Lower-income rider trying to make it to essential jobs and medical appointments would be faced with affordable prices (38% of Lyft rides in California begin or end in low-income areas that have few transit options already).
In a statement, the company also said “We’ve spent hundreds of hours meeting with policymakers and labor leaders to craft an alternative proposal for drivers that includes a minimum earnings guarantee, mileage reimbursement, a health care subsidy, and occupational accident insurance, without the negative consequences.”
Lyft further wants California voters to determine what happens next when they go to the polls in November. This means that Car Hire services could form a talking-point in the #uselection2020.