UPDATED! Lyft is Officially Stopping Rides in California at Midnight Tonight AVERTED
Updated 12:30pm 8/20:
CA appeals court grants Uber and Lyft a temporary reprieve following threats to shut down in California.
The court extended the length of time Uber and Lyft will have to comply with an order requiring them to reclassify rideshare drivers as employees. So for the time being it looks like Lyft will continue to operate.
“The stay will extend until Uber and Lyft’s appeals are resolved on the condition that they agree to a new timeline and procedure. If they do not, the stay will expire on Aug. 25 at 5 p.m. PT. One of those conditions is that the CEOs of Uber and Lyft both submit sworn statements confirming they’ve developed plans to comply with the preliminary injunction within 30 days of a ruling if the appeals court affirms the preliminary injunction and if Proposition 22, the ballot measure that would exempt the firms from AB5, fails to pass.” – CNBC
Appeals court grants Uber and Lyft a temporary reprieve in case over driver classification https://t.co/RwEpJLmzk0
— CNBC (@CNBC) August 20, 2020
According to Lyft itself, they are halting rides in California effective tonight, 11:59PM, Aug 20th. Which is incredible, it may be a political powerplay as well as temporary, but we will see, as of now Lyft is done in CA. It all stems back to AB-5 legislation, forcing rideshare companies in CA to classify their contractors as employees.
Meanwhile, Lyft’s chief rival, Uber, is about to double its business in CA.
Lyft’s motivations (read their reasons bellow) are not surprising, but shutting down completely, especially during a state emergency, when many people may need rides to escape forest fires, seems like a crazy move right now.
via Lyft: “At 11:59PM PT today our rideshare operations in California will be suspended. This is not something we wanted to do, as we know millions of Californians depend on Lyft for daily, essential trips. We’re personally reaching out to riders and drivers to share more about why this is happening, what you can do about it, and to provide some transportation alternatives.
Why this is happening
For multiple years, we’ve been advocating for a path to offer benefits to drivers who use the Lyft platform — including a minimum earnings guarantee and a healthcare subsidy — while maintaining the flexibility and control that independent contractors enjoy. This is something drivers have told us over and over again that they want.
Instead, what Sacramento politicians are pushing is an employment model that 4 out of 5 drivers don’t support. This change would also necessitate an overhaul of the entire business model — it’s not a switch that can be flipped overnight.
In this new model that politicians are pushing:
- Passengers would experience reduced service, especially in suburban and rural areas
- 80% of drivers would lose work and the rest would have scheduled shifts, and capped hourly earnings.
- Lower-income riders trying to make it to essential jobs and medical appointments would be faced with unaffordable prices (38% of Lyft rides in California begin or end in low-income areas that have few transit options already).
What we’re doing
We don’t want to suspend operations. We are going to keep up the fight for a benefits model that works for all drivers and our riders. We’ve spent hundreds of hours meeting with policymakers and labor leaders to craft an alternative proposal for drivers that includes a minimum earnings guarantee, mileage reimbursement, a health care subsidy, and occupational accident insurance, without the negative consequences.
What you can do
Your voice can help. A ballot measure this November, Prop 22, proposes the necessary changes to give drivers benefits and flexibility, while maintaining the rideshare model that helps you get where you need to go. We believe voters should decide. Please sign up to help today.
Thank you for being a part of the Lyft community. We will keep you updated as this situation develops.
You can find further information about the suspension and alternative transportation – From public transportation and airport shuttles, to bikes, scooters and rentals via the Lyft app – here. “