Uber and Lyft’s ride-hailing businesses are fighting to keep operating in California, but restaurant delivery and other services on the apps will continue for now.
The recent preliminary injunction ordered the companies to reverse their misclassification of drivers as independent contractors instead of employees under AB5’s employee law. In response, both threatened to shut down in California after the 10-day deadline. But that doesn’t mean your Uber Eats lunch order is gone.
Uber and Lyft said that, if forced to go from a gig worker “independent” model to a full-time employee setup by Aug. 20, both would cease operations until at least November. The companies are supporting a state proposition on the fall ballot that would keep its drivers as gig workers. But the shutdown threat means separate services like Uber Eats will keep operating as before. Read more…
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