Uber and Lyft are discussing licensing their brands to operators of taxi fleets in California as both ride-hailing companies face pressure to reclassify their drivers in the state as full-time employees, as required by A.B.
Lyft has reportedly already presented the plan to its board of directors, while Uber already operates under a similar model in Germany and Spain. The ride-hailing companies are yet to commit to such a plan as they wait to see how California’s legal situation around drivers plays out first, the report added.—designed to reclassify gig workers as employees with minimum wage protections and employment benefits—went into effect in January, but Uber and Lyft have refused to comply with it arguing that they are simply providing a tech platform and are not a transportation business themselves.
Both companies have appealed the decision and warned that they may have to shut down operations in the state if the order was not reversed.16%. That’s the total share of Lyft’s rides that California accounts for, the company disclosed in its with investors earlier this month. A shutdown in California could severely affect Lyft which reported a loss of $437 million for the quarter ending on June 31.Uber and Lyft have raised strong objections to A.B. 5 and have pushed to limit its ambit. Both companies along with food delivery company DoorDash have
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Source: Reuters - 🏆 2. / 97 Read more »