Uber and Lyft Threaten to Suspend Operations in California

KQED's Forum

KQED

Politics, News, News Commentary

4.6 • 656 Ratings

🗓️ 20 August 2020

⏱️ 21 minutes

🔗️ Recording | iTunes | RSS

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Summary

In a standoff with California courts, ride-hailing companies Uber and Lyft have threatened to shut down operations in the state if forced to reclassify their drivers as employees, as mandated by new law AB 5. Both companies have appealed a state judge’s order to reclassify their drivers, but without a stay of the ruling, they must comply with state law by Friday at midnight. Internally, both companies are reportedly exploring franchise-like business models, similar to what Uber already does in Germany and Spain, as an alternative way to continue operating in the state. The companies are also eyeing the November election where Proposition 22, which would exempt Uber and Lyft from California’s new employee classifications, will be on the ballot. We'll discuss what's at stake and we want to hear from you: how would you be affected if ride-hailing services shut down in California? Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:43.1	This is Forum. I'm Mina Kim. In other breaking news today, ride hailing company Lyft has announced
0:48.9	it will suspend its operations beginning at noon today. That's because today is the day that Uber and Lyft are supposed to
0:56.8	reclassify their drivers from independent contractors to employees under a judge's ruling that found
1:01.8	the ride-hailing companies are violating the state's landmark labor law AB5. We look at what's at
1:07.4	stake for the companies, the options they're weighing, and how a shutdown of services could affect both drivers and riders.
1:14.0	And we want to hear from you, how are you impacted by news of the suspension?
1:18.4	There's also one that's considered imminent from Uber.
1:20.9	Do you think California is doing the right thing in making Uber and Lyft comply with AB5?
1:25.6	The number to call 86673736 with6-7-86 with your thoughts, comments,
1:30.3	questions. Again, 866-733-6786, or you can reach us on Twitter, Facebook, or email us at
1:36.6	forum at kQED.org. Kate Conger is with us. She is a technology reporter based in San Francisco
	...

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