Uber And Lyft Set To Suspend Service In California

The Verge reports:

No Uber and Lyft rides in California? After a judge rejected the companies’ effort to delay an order that they classify drivers as employees, it seems inevitable. Uber and Lyft have until August 20th to comply with the order. But the companies have said they will need to go dark in the Golden State in order to retool their business.

The judges may not have the last word. Uber and Lyft are counting on California’s notoriously mercurial voters to help them circumvent AB5, which went into effect in January and makes it more difficult for companies to use independent contractors.

Uber and Lyft built their respective businesses on the concept of using freelance drivers who aren’t eligible for traditional benefits like health insurance and paid leave.