Lyft will stop running its operations in California at midnight tonight, after being hit with an injunction to reclassify its drivers…
Rideshare company Lyft will pause its operations in the state of California, effective at 11:59PM PT tonight. The company stresses it’s a move they were forced to make and is reaching out to drivers and riders alike to inform them about the situation.
Lyft Suspending California Operations at Midnight Tonight
Lfyt explains on its blog a bit of the events that have culminated to its current set of circumstances:
“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.”
Lyft states it is continuing its fight to create a benefits models that works for all of its rideshare drivers and riders, as well:
“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.”
Lyft urges its supporters to vote on Prop 22 this November.