Aug. 21, 2020 7:18 PM With the granting of an emergency stay order Thursday, Uber and Lyft will be able to continue operations in California for now. The proposition details that rideshare drivers and delivery drivers would remain independent contractors while gaining some of the benefits of being employees. Do not be surprised if these platforms skedaddle out of California. What options do Uber and Lyft have instead of turning drivers into employees? California Attorney General Xavier Becerra said: "California is America's economic engine because innovation and worker rights go hand in hand. Senior RSG contributor Paula Gibbins breaks down, what’s going on with Uber, Lyft and California, Uber and Lyft are not leaving California right now. We understand this is a confusing situation for many, and even though Uber and Lyft were granted a reprieve, it’s understandable that drivers may want to consider some Plan Bs. Let’s take a look at NYC and what has happened there after a minimum wage was enforced, at a wage of $17.22/hour after expenses. Most popular. Sadly, this was preventable. Samsara makes virtual events special with Vouchers for Uber Eats. Why “backhaul” rates are a thing of the past. By Sara Ashley O'Brien, CNN Business. This prompted Uber and Lyft to consider temporary shutdowns in California. That’s the solution on the ballot in November, and it’s the solution drivers want because it preserves their ability to earn and to use the platform as they do now — whenever they want — while also getting historic new benefits. Meanwhile, regular Uber on-demand rides for individual bookings, as well a Uber Eats delivery services, will still be operating as before. The rest unfolded quickly. With fewer ride requests, the next thing that happened was Uber and Lyft stopped accepting new drivers on their platforms in NYC. Instead, independent-contractor drivers would be entitled to other compensation—including minimum earnings, healthcare subsidies, and vehicle insurance. Tuesday, August 18, 2020. Uber, Lyft Won't Suspend Service In California After Court Gives Them More Time An appeals court has given the ride-hailing companies more time to … Uber and Lyft are probably going pull out of California if they are forced to classify drivers as employees. The court has ordered Uber and Lyft to submit plans for hiring employees by early September, in case the court does not decide in their favor.”, A Lyft spokesperson stated: “While we won’t have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers. "By threatening to kill our jobs and leave California, Uber and Lyft have shown the world that they don't care about the drivers or their livelihoods," said Cherri Murphy, a Lyft driver in Oakland, on a press call Tuesday held by a union-backed campaign opposing the ballot measure. Among these changes include: healthcare stipend, guaranteed minimum earnings, and injury protection. Uber’s California Shutdown Threat Won’t Impact Its Real Money Maker: Uber Eats . By Kamil Zawadzki August 21, 2020. A California court ruled Thursday that Uber and Lyft are not required to immediately reclassify their drivers as employees rather than independent contractors. Share 0. Do you think Proposition 22 will pass or will Uber and Lyft eventually exit California? Makes more sense for Bird chargers that don’t actually interact with the consumers at any level.”. 8 of 8 People get in and out of Lyft and Uber cars outside the Cal Train station on Townsend Street in San Francisco, California, on Monday, May 20, 2019. December 15, 2020. Concerns about not being able to regulate cleaning, mask wearing, etc Uber’s website says it’s in Cabo and can get a price estimate. Sexton stated: “Licensing can make sense as a work-around, but franchising is way too heavily regulated for them to just jump into it, especially in California. From there, on August 5, 2020, the California state Labor Commissioner announced in a press release that the office plans to file a lawsuit against the companies under the grounds that they are “committing wage theft by willfully misclassifying drivers as independent contractors instead of employees. Economics Uber Lyft California AB5 Ridesharing. DMCA Copyright © 2020 The Rideshare Guy. Instead of doing the right thing, these companies pocketed that money and passed the costs onto taxpayers," said John Coté, a spokesman for the San Francisco city attorney's office. But other drivers say they want the employment protections of AB5. Oral arguments will be held mid-October, and the ruling could come down against Uber and Lyft, By September 4, Uber and Lyft will have to submit a statement saying they have developed plans to make drivers employees, in case the court doesn’t rule in their favor or if Prop 22 fails, Uber and Lyft would prefer Proposition 22 succeed at the ballot box in November. Both are curious to know how they will go on from here. The businesses’ exit from the Golden State will leave hundreds of thousands of drivers unemployed and millions of Californians chasing an expensive cab. Among the benefits are guaranteed minimum wages and health care benefits, all while being able to continue to enjoy the flexibility of gig work. 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