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Transportation

Lyft, Uber Prepare to Suspend California Operations

By Michael B. Baker / August 20, 2020 / Contact Reporter
Business Travel News on X

[Update, Aug. 20]: A California appeals court on Thursday extended the deadline given in an early ruling to allow Uber and Lyft until Aug. 25 to file statements indicating they would agree to the requirements of the earlier ruling. As such, both Uber and Lyft have indicated they will not suspend services in California after today.

Lyft and Uber each plan to suspend operations in California at the end of the day on Thursday as time runs out on a court order for them to reclassify their drivers as employees.

In a blog post on Thursday, Lyft said the suspension will go into effect at 11:59 pm Pacific Time on Thursday, nothing the reclassification would "necessitate an overhaul of the entire business model; it's not a shift that can be flipped overnight." Uber in a blog post on Wednesday said it also would shut down in California at midnight if an appeal of the ruling was not successful.

In addition to appeals of the ruling, both Uber and Lyft are pushing for a proposition on California's ballot in November that would classify drivers as contractors.

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