The deadline is this evening for Uber and Lyft to require classifying their drivers as employees as opposed to independent. Both stocks are sinking to new lows for the month awaiting tonight’s deadline. Uber and Lyft will most likely spend their services in California if they have to comply with state regulations. If that ends up being the case, they will appeal the ruling.
Lyft will suspend service in California tonight. Uber had not make a formal announcement as of 10:23 AM- PT .
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. Source Uber
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). Source Uber
Uber stock has been down 3.5% since the beginning of the year. Lyft shares that have been down almost 40%.
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 ride share model that helps you get where you need to go. We believe voters should decide. Please sign up to help today. Source Uber