Lyft decides to shut down rides in California

Come midnight tonight, Lyft drivers and passengers in California will have to look elsewhere for on-demand rides.

The San Francisco-based company announced Thursday its decision to stop all ride-hailing operations in the state as soon as this Friday. This decision will only affect riders and drivers in California. Bicycle, car rental, and e-scooter services will continue operating as usual through the Lyft app. Lyft said drivers and riders were notified about the suspension this morning.

The shutdown stems from a legal battle over employee classification. Lyft, along with ride-sharing competitor Uber, is fighting to keep its drivers classified as independent contractors without offering them benefits like sick pay and healthcare. A state law, known AB 5, forces app-based companies with a gig workforce to start treating workers as full-time employees. California filed a lawsuit against Lyft and Uber earlier this year which led to the current Aug. 20 deadline to comply with AB 5.  Read more...

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