Thursday, August 20, 2020

Lyft Suspends Services In California

Ridesharing service Lyft announced in a blog post on Thursday morning that it is immediately suspending its services in California, in response to a recent ruling that said the company--as well as Uber--must treat its drivers as employees. According to Lyft, it will suspent its rideshare operations at 11:59pm PT in California. Lyft said the move was made because the requirement to employ its driver is "not a switch that can be flipped overnight" and that it would require the company to "overhaul" its entire business model. Both Lyft and Uber have been hit by AB5, a law aimed at ensuring that rideshare drivers be paid a minimum wage and benefits. Lyft and Uber have been pushing for a change to AB5 through the Prop 22 ballot measure.

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