LOS ANGELES - Uber and Lyft are threatening to pull out of California by the end of the week if they are forced to classify their drivers as employees instead of independent contractors.
The move could leave hundreds of thousands of people without a job and many more without a mode of transportation.
Uber issued the following statement, “We've appealed this decision, but if we are not successful in our appeal, we will need to temporarily shut down by Thursday night."
"We know that riders rely on Uber to get around, and drivers rely on the Uber app to earn income. We wanted to let you know that this is a possibility, so you can plan accordingly. We remain committed to helping drivers get access to new benefits and protections without compromising the flexibility they have today via Proposition 22, which is on the ballot this November.”
Will Uber and Lyft really halt service in the state? Assembly Member Miguel Santiago thinks it’s an empty threat.
“Look, I just don’t buy it. I think they’re going to want to continue to invest in the largest economy in the world,” said Santiago.
We’ll see by the end of this week if Uber and Lyft temporarily pull out of the state. Both companies have invested millions of dollars into Prop 22, which will be on the ballot in November. It would exempt Uber and Lyft drivers from being classified as employees.