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Uber and Lyft have said they may shut down their California operations on Friday, arguing that they won’t be able to comply with a law mandating that drivers be classified as employees.
But experts told Business Insider not to expect it to harm either company’s business very much — it’s drivers who have the most to lose from a shut-down.
“Essentially, I feel like someone who is almost getting justice, but in the meantime, getting blackmailed for it,” Edan Alva, a Lyft driver based in the San Francisco Bay Area, told Business Insider. “What they’re essentially doing is telling drivers, ‘You don’t deserve us following the law for you. If you force us to do that, we will make sure that you suffer even more.'”
Harry Campbell, founder of the blog The Rideshare Guy, told Business Insider that the situation is similar to what happened in Austin, Texas, in 2016: Uber and Lyft left town over a legal issue they felt would have a “material, negative impact” on their business.
“Everyone was shocked that Uber and Lyft pulled out and it basically happened overnight. And I think the same thing is going to happen here,” Campbell said.
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Come Friday, Californians may be facing a new transportation reality — one that doesn’t include Uber or Lyft.
The ride-hailing companies have threatened to shut down their operations in the state of California rather than comply with a state law that requires them to classify their drivers as employees. Both companies have until Thursday to adhere to the regulation. See the rest of the story at Business Insider
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