Uber, Lyft could pause ride-hailing in California if drivers become employees

[alp227]

Source: San Francisco Chronicle

Both Uber and Lyft would press pause on their California service if they’re forced to reclassify drivers as employees, the companies said Wednesday.

Uber CEO Dara Khosrowshahi said in interview on MSNBC that the ride-hailing service likely would temporarily halt California operations until at least November if it’s forced to reclassify drivers as employees.

Lyft president John Zimmer made similar remarks on Lyft’s second-quarter earnings call.

San Francisco Superior Court Judge Ethan Schulman on Monday granted California’s request for a preliminary injunction saying that Uber and rival Lyft must make drivers employees rather than independent contractors. Schulman stayed that order for 10 days, giving the companies time to appeal, as both said they will.

Read more: https://www.sfchronicle.com/business/article/Uber-would-pause-ride-hailing-in-California-if-15478429.php

[SoCalNative]

1. Oh well

they're digging their own grave

[appalachiablue]

2. Exploited drivers & workers deserve all that the judge just granted:

Calif. Judge Orders Uber & Lyft To Convert Their Drivers Into Employees Right Now

https://democraticunderground.com/1016265557

[edhopper]

3. Uber and Lft are amopng the worst

for workers of the "Gig Economy". They also are businesses that will never make a profit.
Plus they are putting taxi cabs, where drivers can make a living wagfe, out of business.

I applaud California

[christx30]

8. If taxis were good, they wouldn't have to worry

about Lyft and Uber. Fact is their customer service sucks. You’re lucky if you can get a cab to show up. The drivers I’ve always had are rude as hell, and try to run the fare up. With Uber, I know exactly how much the ride will cost before the driver even shows up. And I know the driver will show up, because they want the work.
After my last time calling g a cab, I’ll never use them again. It was 11pm, and 32 degrees outside. I waited 3 hours, and he never showed up. I called like 8 times begging them to send someone. I finally just cancelled and walked the 9 miles home. The taxi industry can burn for all I care.

[LisaM]

11. I think we can all agree that the cab system was not good.

That doesn't mean it needs to be replaced with unregulated, law-breaking companies that exploit their workers. I mean, if you use them, you are supporting those things.

We need to fix the taxi industry, that's for sure. But I still boycott Uber and Lyft.

[oldsoftie]

13. You sign up for it. If you dont like that type of work, dont do it. Very simple.

If Uber/lyft break any laws, thats different. But if my friend says he makes some good spending money in his spare time, then thats HIS choice. He only works when he wants to.

[Coventina]

14. "If you don't like that type of work, dont (sic) do it."

That solved no labor problem, ever.

[oldsoftie]

18. Oh look the punctuation police are out on a blog site! Sheesh.

Apparently the post below yours says it solved HIS problem

[christx30]

16. I refuse to use cabs because of the times

they have simply not shown up. That was not the first, or last time it happened. Never had that happen with Uber.

I also do DoorDash. I love the work, and it now accounts for 1/3 of my monthly income. I am no longer stressed about money. I can take $10 in gas and an afternoon, and turn it into $90. And that should be no one’s business except for mine. If you’re a politician that tries to save me from being “exploited”, I certainly won’t thank you for it. And I will not be kind to you on Election Day.

[oldsoftie]

19. There you have it. Good for you.

[underpants]

4. Fed Ex needs to do this too

Just saying.

[PatrickforO]

5. Glad to see this. Uber and Lyft both exploit workers brutally.

[AllaN01Bear]

6. i always viewed uber and lyft as illeagel hacks . they were supposed to be profit sharing ,

that went down the drain fast.

[lonely bird]

9. Agreed

The myth was that is was “friends giving rides for friends”. That bullshit disappeared quickly. Then it became “well, we’re just an app that connects people”. More bullshit. Bottom line is they are unregulated taxis.

[groundloop]

10. Yep, they're unlicensed (and uninsured) cab companies

Good luck if you're seriously injured and the driver isn't insured for carrying paying passengers.

[Manifestor_of_Light]

17. What about liability?

The driver's personal car insurance won't cover commercial activities.

If they can't pay people a living wage and give them employee benefits, and make any money, then they are bad businessmen.

[maxsolomon]

7. Right.

Call their bluff.

[MRDAWG]

12. If someone works 20 hours a month, they should...........

be employees.
Lots of tax revenue lost here too.

[oldsoftie]

20. Whihc is yet another reason why we need a sales tax. Untaxed income is rampant.

As one of our other posters pet project is talk radio, mine is pushing a sales tax. I'm tired of seeing so much high income going untaxed. And we'll NEVER get out of debt if we leave so much untaxed all the time every year. I could list for you high income positions that pay whatever tax they want instead of what the legal rate is

[BamaRefugee]

15. So that it becomes impossible for many many people to get to job interviews, or get to their new

job.
Not everybody has a car, and not every job is located right at a bus stop!
You could ride public transportation as close as possible to your interview or job, but what if it's actually another 1/2 mile from that stop?
"Oh they can walk that far."
Really. In pouring rain at 7:30am? Back to the transportation stop when it begins snowing and it's 20 degrees at 5pm?
UBER and Lyft, for all their faults, get a lot of people places they very well may not otherwise be able to get to.

Multiple other scenarios too where these companies were a godsend to people.

[oldsoftie]

21. Never looked at it that way, but very good points. nt