ABC News October 23, 2020 Legal setback for Uber and Lyft The rideshare companies must now classify drivers as employees rather than independent contractors. As of mid-December 2020, drivers across California began receiving updates in their Uber driver portals, detailing the changes coming to them. As an Amazon Associate I earn from qualifying purchases. An emergency order granted by a California appeals court temporarily allows for Uber and Lyft to continue operating under their current model until a court resolution is made. Uber Freight. Unlike UberRush and UberEssentials, two of the other piloted services, Uber Eats survived to become a multi-billion dollar business. Concerns about not being able to regulate cleaning, mask wearing, etc Uber’s website says it’s in Cabo and can get a price estimate. Among the benefits are guaranteed minimum wages and health care benefits, all while being able to continue to enjoy the flexibility of gig work. Samsara makes virtual events special with Vouchers for Uber Eats. October 23, 2020 / 10:41 AM / CBS/AP In comparison, post-Covid, 17.44% of drivers surveyed want to become employees. It may not help their cause . This is down slightly from our survey before the Covid-19 pandemic. Another option Uber and Lyft could consider is following in Dumpling’s footsteps. Aug. 21, 2020 7:18 PM With the granting of an emergency stay order Thursday, Uber and Lyft will be able to continue operations in California for now. It would allow an individual to be truly an independent contractor, able to set their own rates, and operate where and when they want. Classifies drivers for app-based transportation (rideshare) and delivery companies as “independent contractors,” not “employees,” unless company: sets drivers’ hours, requires acceptance of specific ride and delivery requests, or restricts working for other companies. DMCA Copyright © 2020 The Rideshare Guy. They have poured tens of millions of dollars into promoting the measure, seeking a political solution to their problems. At the same time, both companies are exploring ways to adapt their businesses in California in the event they lose their legal battle. Uber ... Now though both companies will have until October to figure everything out. But other drivers say they want the employment protections of AB5. Uber and Lyft's ride-hailing businesses are fighting to keep operating in California, but restaurant delivery and other services on … To start, we’ll go all the way back to January 1, 2020 when Assembly Bill 5 (AB5) was officially put in place. Afternoon Coffee: California courts order Uber, Lyft to classify drivers as employees; Child-labor widespread in cocoa harvest; Coca-Cola’s new operating model, brand cuts . The rest unfolded quickly. Please note that The Rideshare Guy has financial relationships with some of the merchants mentioned here. An appeals court has given Uber and Lyft more time to fight a judge's order over how they classify their drivers, averting a threatened shutdown in California. It’s official – Uber and Lyft are not leaving California, yet. After Schulman ordered them to comply with the law while the state's lawsuit proceeds, Uber and Lyft said they could not make that switch quickly and would have no alternative but to shut down their services for an indefinite period. It gives gig workers access to labor protections and benefits such as employer-sponsored health insurance, overtime pay and paid sick leave, which they do not currently receive under their independent contractor status. One they are considering is a franchise-like model where the companies would license their brands out to vehicle fleet operators in California. Amber Riley performs her song, ‘BGE’ December 15, 2020. Lyft and Uber are no … Senior RSG contributor Paula Gibbins breaks down what’s going on with Uber, Lyft and California and what you need to know about it. What options do Uber and Lyft have instead of turning drivers into employees? By Sara Ashley O'Brien, CNN Business. Uber, Lyft Won't Suspend Service In California After Court Gives Them More Time An appeals court has given the ride-hailing companies more time to … Get my free Ultimate Guide for Rideshare Drivers delivered straight to your inbox. Instead, independent-contractor drivers would be entitled to other compensation—including minimum earnings, healthcare subsidies, and vehicle insurance. With an Uber account, you can request a ride in any city where Uber operates, 24 hours a day, 7 days a week. Drivers, what do you think about the news that Uber and Lyft will remain in California right now? 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. Uber and Lyft announced shortly after the judge ruling that they might leave California, hopefully temporarily. October 14, 2020 / US . Uber CEO says its service will probably shut down temporarily in California if it's forced to classify drivers as employees Published Wed, Aug 12 2020 10:32 AM EDT Updated Thu, Aug 13 2020 … A California court ruled Thursday that Uber and Lyft are not required to immediately reclassify their drivers as employees rather than independent contractors. Posted by Leslie Eastman Sunday, August 23, 2020 at 4:00pm | 8/23/2020 - 4:00pm. Do drivers want to be independent contractors? Under this model, the company would help you get started in creating and running your own transportation business. But the companies got a last-minute reprieve from complying with a judge's order to classify their drivers as employees, instead of independent contractors, as required by a state labor law. It’s based on what Dumpling currently does for people wanting to start their own delivery business. Democracy Dies in Darkness ... 2020 at 11:00 a.m. UTC. Up Next in News. You raise your rates, stop “hiring” new drivers and limit when drivers can be on your platform. This prompted Uber and Lyft to consider temporary shutdowns in California. Travelers request an Uber ride at Los Angeles International Airport's LAX-it pick up terminal Aug. 20, 2020. Uber and Lyft still operating in California despite court order. Dr. Williamson M. Evers, Senior Fellow at the Independent Institute in Oakland, CA said, “Uber and Lyft are businesses, not benevolence societies. With fewer ride requests, the next thing that happened was Uber and Lyft stopped accepting new drivers on their platforms in NYC. By Kamil Zawadzki August 21, 2020. Restricts certain local regulation of app-based drivers. It may seem like a reasonable assumption, but it’s one that I think ignores a stark reality: Uber would only have full-time jobs for a small fraction of our current drivers and only be able to operate in many fewer cities than today. The decision allows the … The Rideshare Guy may be compensated if consumers choose to utilize the links located throughout the content on this site and generate sales for the said merchant. As the New York Times reports: “An appeals court is weighing the companies’ requests to overturn a judge’s order to employ drivers, but it is not clear when the court will issue a ruling. Paul. From there, ride requests started to drop. Economics Uber Lyft California AB5 Ridesharing. On Thursday, Uber spokesman Matt Kallman said: "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. However, with licensing they have far less control over it. In May, we sent out a survey to our email list and the results showed that 71% of Uber and Lyft drivers want to remain independent contractors. California's A.B. Robyn Beck/AFP via Getty Images How did we get to where we are now, with Uber and Lyft making statements about leaving California and drivers wondering if, at the last second, they would need to find new opportunities? Robert Kneschke/ Adobe Stock. Rideshare drivers demonstrate against rideshare companies Uber and Lyft during a car caravan protest on August 6, 2020 in Los Angeles. Uber and Lyft have opposed the enforcement of AB5 and have funded a ballot initiative now known as Proposition 22. 5, which codified an earlier state supreme court decision, went into effect in January 2020. Critics say the companies have had ample time to comply with AB5, which was passed last fall and took effect in January, and stemmed from a 2018 decision by the California Supreme Court. So, as a company, you’re having to pay drivers more and you’ll get punished if too many people are on the road. (B) that the worker performs work that is outside the usual course of the hiring entity’s business. What does this reprieve mean? Today, despite ongoing regulatory fights, Uber is still operating in London. Many women freeze their eggs amid pandemic. But Uber returned to Colombia on February 20, 2020. Uber and Lyft continue operating in California after temporary reprieve from court. Still… Instead, drivers would rather trade having benefits in favor of having Lyft and Uber put a cap on how many drivers can be driving in their area. Below, we detail what drivers received from Uber and include our perspective and analysis. Sally Ehrmann - October 26, 2020 12:15 PM | Categories: Afternoon Coffee | Tags: General News. I read that in August 2020 Uber is illegal as the city has not renewed the licensing. On August 10, 2020, a judge in California ruled that both Uber and Lyft must classify their drivers as employees within 10 days or file an appeal. California residents still have access to Uber and Lyft. drivers would rather be independent contractors than employees. Both are curious to know how they will go on from here. Start earning in your city Sign up to drive Sign up to drive. We’ll break down what Uber and Lyft could be looking at moving forward. Why “backhaul” rates are a thing of the past. Home. Coronavirus: Uber, Lyft suspend shared ride service in U.S. and Canada Ride-hailing leaders will still offer regular rides and Uber Eats deliveries What do you do? "By threatening to kill our jobs and leave California, Uber and Lyft have shown the world that they don't care about the drivers or their livelihoods," said Cherri Murphy, a Lyft driver in Oakland, on a press call Tuesday held by a union-backed campaign opposing the ballot measure. Given the massive unemployment right now, it’s not a good look for California to throw thousands of drivers off the Uber/Lyft platform.”. By Sasha Lekach 2020-08-16 17:53:47 UTC. Uber claims new California law still won’t force it to classify drivers as employees. Stay up to date on all things rideshare, mobility and more! She is based in Minneapolis/St. Do not be surprised if these platforms skedaddle out of California. California Attorney General Xavier Becerra said: "California is America's economic engine because innovation and worker rights go hand in hand. From there, on August 5, 2020, the California state Labor Commissioner announced in a press release that the office plans to file a lawsuit against the companies under the grounds that they are “committing wage theft by willfully misclassifying drivers as independent contractors instead of employees. Among these changes include: healthcare stipend, guaranteed minimum earnings, and injury protection. Uber and Lyft have called off plans to shut down in California after an appeals court halted an order for the ride-hailing companies to immediately comply with the state’s new gig work law. Oral arguments in the case are set for mid-October. Design by SFWP. Uber and Lyft are probably going pull out of California if they are forced to classify drivers as employees. This will end the question of ‘employee vs contractor’ and make an appeals decision unnecessary. hide caption. It’s possible that this might not even work for Uber and Lyft in California, however. Regarding the situation and back and forth among Uber, Lyft and the state of California, Harry Campbell said, “[If Uber and Lyft left California], quite a few drivers will leave California entirely, or look for other full-time/temp work. Has potential to muddy the brand on a much larger scale if the licensees decide to do anything stupid. October 30, 2020 / US. Part of the ruling made in NYC states that companies will be penalized for having too many cars on the road at a time without passengers on the city streets. Instead of doing the right thing, these companies pocketed that money and passed the costs onto taxpayers," said John Coté, a spokesman for the San Francisco city attorney's office. It’s a risky move to let go of control in the most populous state in the country. That’s the solution on the ballot in November, and it’s the solution drivers want because it preserves their ability to earn and to use the platform as they do now — whenever they want — while also getting historic new benefits. On Thursday afternoon, an appeals court said the companies can keep operating with their drivers as independent contractors while they fight the order. Updated 11:21 AM ET, Sun August 16, 2020 . Last week's order by San Francisco Superior Court Judge Ethan Schulman created an existential crisis for the ride-hailing companies. Then on June 9, 2020, the California Public Utilities Commission (CPUC) announced that Uber and Lyft must provide workers’ compensation coverage to drivers by July 1. Here’s how we got to this point. 44.1% of drivers surveyed would rather be a “real” independent businessperson who can charge customers whatever they want and turn down whatever rides you want. Senior RSG contributor Paula Gibbins breaks down, what’s going on with Uber, Lyft and California, Uber and Lyft are not leaving California right now. Uber and Lyft maintain that the law, known as Assembly Bill 5, or AB5, does not apply to them, saying they are not transportation businesses but tech platforms. August 21, 2020. 84.6% of drivers surveyed would rather have Uber and Lyft cap the number of drivers in their area and remain independent contractors. Uber and Lyft will continue operating in California after last-minute reprieve. AB5 named that workers can be hired as and called independent contractors, if it’s proven: Many believe that Uber and Lyft are unable to pass the ABC test (as described above) and therefore should treat their drivers as employees instead of independent contractors, which leads to the next step. Uber, Lyft Continue Operating In California After Last-Minute Ruling. Faiz Siddiqui August 20, 2020 at 9:20 p.m. UTC SAN FRANCISCO — Uber and Lyft will continue operating in California after an appeals court issued a stay on … Uber Freight. Healthcare Stipend. (C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity. Oral arguments will be held mid-October, and the ruling could come down against Uber and Lyft, By September 4, Uber and Lyft will have to submit a statement saying they have developed plans to make drivers employees, in case the court doesn’t rule in their favor or if Prop 22 fails, Uber and Lyft would prefer Proposition 22 succeed at the ballot box in November. Get a ride when you need one Sign up to ride Download the App. "Uber and Lyft have known for over two years that their drivers are owed basic labor protections like minimum wage, sick pay and reimbursement for expenses. AD. Both Uber and Lyft have agreed to a … But is that a good thing? Depending on how things play out in the next three months, other states might follow suit. Uber is available in many cities around the world. Both Uber and Lyft are encouraging customers and drivers to support a measure appearing on November's state ballot that would exempt the companies from AB5. The businesses’ exit from the Golden State will leave hundreds of thousands of drivers unemployed and millions of Californians chasing an expensive cab. Below is the ballot summary for Proposition 22: It’s most likely that Uber and Lyft are hoping Proposition 22 will win the support of voters in the November election. That’s what many are wondering in the wake of Uber and Lyft almost leaving California at the last minute – even if it would have only been temporary. They warned that converting drivers to employees would force them to employ fewer drivers, reduce service, increase wait times and raise prices. Neither Uber nor Lyft is profitable, and both have taken deep hits from the pandemic, which has decimated demand for rides and prompted the companies to eliminate thousands of corporate jobs. Most popular. By JEREMY B. Sexton stated: “Licensing can make sense as a work-around, but franchising is way too heavily regulated for them to just jump into it, especially in California. And things aren’t getting easier for the company, as a California court of appeals ruled that both Uber and Lyft must classify their drivers as employees.. August 21, 2020. What happened and what could this mean for cities and states around the United States? California's A.B. Uber and Lyft could shut down in California this week. The best option for Uber and Lyft is for Proposition 22 to win at the ballot this November. Uber for Business. California residents still have access to Uber and Lyft. This Friday, Uber and Lyft are set to entirely shut down ride-sharing operations in California. So, starting on February 1, 2020, Uber was no longer be an option in Colombia. Meanwhile, regular Uber on-demand rides for individual bookings, as well a Uber Eats delivery services, will still be operating as before. That includes a franchise-like model in which Uber and Lyft would license their brands to vehicle fleet operators, who would become responsible for the relationship with drivers. But it’s still dramatically more than those who want to become employees. They have to make money. Independent contractors are not covered by various state employment laws—including minimum wage, overtime, unemployment insurance, and workers’ compensation. Rides would be more expensive, which would significantly reduce the number of rides people could take and, in turn, the number of drivers needed to provide those trips. ", The companies welcomed the appeals court's ruling. This month, Uber moved up its timeline to turn a profit to the fourth quarter of 2020 from 2021. October 30, 2020 / US. On August 10, 2020, a judge in California ruled that both Uber and Lyft must classify their drivers as employees within 10 days or file an appeal. This Friday, Uber and Lyft are set to entirely shut down ride-sharing operations in California. An appeals court has given Uber and Lyft more time to fight a judge's order over how they classify their drivers, averting a threatened shutdown in California. Save. Editor's note: Uber and Lyft are among NPR's financial supporters. All Rights Reserved. 35.8% surveyed said they would rather be a contractor who is guaranteed $15 per hour plus tips when you have the app on, allowing them to work when and where they want without benefits. How did we get here? They were running last October but wasn’t welcomed by many businesses. The reasonable explanation is that passengers didn’t want to pay more. October 26, 2020 / US. These days, I'm a trusted media expert on all things rideshare and have a number of contributors across the country who are all driving for Uber and Lyft and other gig companies. California is not the only state that is suing Uber and Lyft. As well as being more convenient than hailing a traditional cab, it also offers service at a considerably lower price point. On Thursday, August 20, 2020, an appeals court granted Uber and Lyft a temporary reprieve. California Labor Commission rules that a particular Uber driver is an employee, not independent contractor. If Uber and Lyft are forced to reclassify their drivers as employees, it’s possible a lot of drivers will permanently lose their jobs as drivers for these companies. Uber would not be as widely available to riders, and drivers would lose the flexibility they have today if they became employees.”, You can see how Uber’s CEO answered this question below during Harry’s interview with him here: My Interview with Uber CEO Dara Khosrowshahi. The law makes it harder for companies to claim workers are independent contractors rather than employees. Uber and Lyft spent the past week threatening to shut down their ride-hailing services in California at the stroke of midnight on Thursday. The court has also given the companies until early September to come up with plans for how they would comply with the law. California polls predict Uber and Lyft will lose Proposition 22 The battle that disruptive companies like Uber, Lyft, Instacart and Doordash are waging in California against the AB5 Act that protec… Learn where Uber is available and explore vehicle options by visiting the link below. Uber and Lyft spent the past week threatening to shut down their ride-hailing services in California at the stroke of midnight on Thursday. Do you think Proposition 22 will pass or will Uber and Lyft eventually exit California? Get a ride when you need one Sign up to ride Download the App. 8 of 8 People get in and out of Lyft and Uber cars outside the Cal Train station on Townsend Street in San Francisco, California, on Monday, May 20, 2019. Once the minimum wage rule hit NYC and Uber and Lyft were made to comply, the rideshare apps increased the prices in order to counter the added funds they’d have to pay their drivers. In her free time, Paula enjoys reading, playing board games and participating in trivia nights. Uber Eats was one of several experimental services trialled in 2014, as then-CEO Travis Kalanick tried to broaden Uber’s scope to include new forms of transportation, utilizing the company’s ride-sharing platform. Upending business like that would leave drivers and passengers in the lurch with few options at hand. California Judge Orders Uber And Lyft To Consider All Drivers Employees, California Sues Uber And Lyft For 'Cheating' Drivers And Taxpayers, Former Uber Executive Charged With Paying 'Hush Money' To Conceal Massive Breach, Uber Gobbles Up Postmates In $2.65 Billion Bet On Food Delivery. And Uber on January 10, 2020, decided to exit the Colombia market with its last day on January 31, 2020. I'm Harry, the founder of The Rideshare Guy. The court has ordered Uber and Lyft to submit plans for hiring employees by early September, in case the court does not decide in their favor.”, A Lyft spokesperson stated: “While we won’t have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers. Any company that suggests otherwise is peddling a false choice. October 26, 2020 / US. The ride-hailing firm will also require riders to sit in the back seat and wear a mask. 2015: July 15 : Legal: Administrative judge recommends that Uber be fined $7.3 million and suspended from operating in California. Share 0. Uber is giving drivers more control of rides in a bid to stay clear of California’s new gig-work law. ", Lyft spokeswoman Julie Wood said: "While we won't have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers.". Uber and Lyft claim they are technology platforms and not transportation companies. We understand this is a confusing situation for many, and even though Uber and Lyft were granted a reprieve, it’s understandable that drivers may want to consider some Plan Bs. The proposition details that rideshare drivers and delivery drivers would remain independent contractors while gaining some of the benefits of being employees. According to The New York Times, this reprieve will allow Uber and Lyft to continue operating while the court weighs their appeal. If they stay under these onerous conditions, 75% of drivers will lose their jobs.”. WHITE. Without it, 80-90% of Californians who earn on app-based platforms will lose that opportunity.”. Finally, 58.8% predict that AB5 will be canceled and things go back to how they were in 2021. California appeals court says Uber, Lyft drivers are employees, not contractors. To help shape their narrative, Uber has rolled out changes for California drivers, such as drivers now having the ability to see passenger destinations, removal of acceptance rates, ending flat rate surge and more. Image by Stock Catalog on Flickr (CC BY 2.0) Brad Polumbo.