Lyft decides to shut down rides in California

MediacityAdmin
Lyft decides to shut down rides in California

Come midnight tonight, Lyft drivers and passengers in California will have to look elsewhere for on-demand rides.

The San Francisco-based company announced Thursday its decision to stop all ride-hailing operations in the state as soon as this Friday. This decision will only affect riders and drivers in California. Bicycle, car rental, and e-scooter services will continue operating as usual through the Lyft app. Lyft said drivers and riders were notified about the suspension this morning.

The shutdown stems from a legal battle over employee classification. Lyft, along with ride-sharing competitor Uber, is fighting to keep its drivers classified as independent contractors without offering them benefits like sick pay and healthcare. A state law, known AB 5, forces app-based companies with a gig workforce to start treating workers as full-time employees. California filed a lawsuit against Lyft and Uber earlier this year which led to the current Aug. 20 deadline to comply with AB 5.  Read more…

More about Uber, Lyft, Ride Hailing Apps, Tech, and Transportation

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