"We are glad that the Court of Appeals recognized the important questions raised in this case, and that access to these critical services won't be cut off while we continue to advocate for drivers" ability to work with the freedom they want, ' Uber said in a statement after the stay.
The unavailability of the two ride-hailing services also would have delivered another blow to the California economy by taking away the paycheques of Uber and Lyft drivers while also making it more hard for people without cars to get around. In May, California's attorney general, along with prosecutors in Los Angeles, San Diego and San Francisco, sued the companies to force them to reclassify their drivers. It would enshrine drivers' current contractor status, albeit with some added benefits, and overwrite the state's gig worker law. "This is not something we wanted to do, as we know millions of Californians depend on Lyft for daily, essential trips", the company wrote in a blog post today. Not only will they lose business in a state with an economy that is larger than most countries, but industry watchers said there is no guarantee shutting down service will mobilize as much support from customers as it might have before the pandemic slashed demand for rides.
Uber previously said it would also leave, but has not yet done so. In other words, both Uber and Lyft will continue to operate as usual in California after a week of threats to suspend operations - threats whose sole aim was to keep the companies from having to give their workers benefits, labor protections, or guaranteed hourly wages in the manner befitting employees.
Lyft announced that it will suspend its ridesharing operations in the state of California, a lucrative market for the company, starting Thursday night.
An appeals court has given Uber and Lyft more time to fight a judge's order over how they classify their drivers, averting a shutdown.
"California is America's economic engine because innovation and worker rights go hand in hand".
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Trump said he opposed new postal funding because of his opposition to mail-in voting, which he maintains will benefit Democrats. White House Chief of Staff Mark Meadows said Trump never directed postal operational changes that would slow mail deliveries.
As part of the stay, the judge gave Uber and Lyft's chief executives until September 4, according to the case information, to submit a sworn statement including a plan to reclassify their drivers if their ballot measure, which proposes to exclude both companies from Assembly Bill 5, fails. "Any company that suggests otherwise is peddling a false choice". They claim the majority of drivers don't want to be classified as employees. "This change would also necessitate an overhaul of the entire business model - it's not a switch that can be flipped overnight".
Under the "third way" proposal outlined in the ballot measure, drivers would receive a health care stipend, a minimum wage, expense reimbursements as well as medical and disability coverage for injuries on the job.
The new gig-worker law tightens rules that establishes who is an independent contractor and who is an employee.
The regulatory and legal fight comes at a time when demand for rides has plummeted amid the coronavirus pandemic, with California among the USA states with the slowest recovery, according to the companies.
California represents 9% of Uber's global rides and Eats gross bookings, but a negligible amount of adjusted earnings, Uber said in November.
It is unknown how long a ride-hailing shutdown would last.