Uber drivers across California got a service update via their app with details and reasons for the inevitable suspension of services.
Uber drivers, riders who rely on their services, and investors were shocked to hear earlier today (Aug. 18, 2020) that Uber would be suspending ridesharing across California in direct response to a California judge’s order to comply with AB5 reclassifying drivers as independent contractors.
According to the update, an appeal was submitted but will not likely go through in time, leaving thousands of Uber drivers with no recourse and rideshare customers scrambling to find other means of transportation.
Check out the update from Uber below.
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.
Here is what drivers saw on their phones.
Prop 22 refers to a ballot initiative going to a vote on Nov 3.
A vote YES supports the ballot initiative to define rideshare drivers as independent contractors.
A vote NO means opposes the above and would mean California Assembly Bill 5 would be used to decide whether app-based drivers are employees or independent contractors.
With Uber suspending operations, Lyft is soon to follow.
Uber has over 140,000 drivers in California while Lyft has around 80,000. This move means those drivers are out of a job, some of them relying on their rideshare app as the principal source of income.
The ball is now in California’s legislator’s court if they can rectify the situation in time. If not, rideshare may be suspended for several months until Prop 22 is officially voted on.