Uber and Lyft Threaten to Suspend Operations in California

In a standoff with California courts, ride-hailing companies Uber
and Lyft have threatened to shut down operations in the state if
forced to reclassify their drivers as employees, as mandated by new
law AB 5. Both companies have appealed a state judge’s order to
reclassify their drivers, but without a stay of the ruling, they
must comply with state law by Friday at midnight. Internally, both
companies are reportedly exploring franchise-like business models,
similar to what Uber already does in Germany and Spain, as an
alternative way to continue operating in the state. The companies
are also eyeing the November election where Proposition 22, which
would exempt Uber and Lyft from California’s new employee
classifications, will be on the ballot. We'll discuss what's at
stake and we want to hear from you: how would you be affected if
ride-hailing services shut down in California?