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August 13, 2020 03:56 pm

Lyft Joins Uber in Threatening To Pull Out of California Over Driver Status

Lyft said it would shut down operations in California if forced to classify drivers as employees, the company's executives said in an earnings call with investors on Wednesday. Lyft joins Uber in threatening to pull out of one of its most important US markets over the question of drivers' employment status. From a report: At issue is the classification of ride-hailing drivers as independent contractors, which Uber and Lyft say most drivers prefer because of the flexibility and ability to set their own hours. But labor unions and elected officials contend this deprives them of traditional benefits like health insurance and workers' compensation. Earlier this week, Uber and Lyft were ordered by a California superior court judge to classify their drivers as employees. Both companies have said they would appeal the ruling, which was stayed for 10 days. But if their appeals fail, Lyft may join Uber in closing up shop in California, the company's president John Zimmer said. "If our efforts here are not successful it would force us to suspend operations in California," Zimmer said on a call announcing the second quarter earnings of 2020. "Fortunately, California voters can make their voices heard by voting yes on Prop 22 in November."

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