Lyft announces suspension of rideshare in California, Uber likely to follow

Posted:
in General Discussion edited August 2020
The car transport company Lyft declared that it will shut down its ridesharing operation in response to local politicians' push to change the employment status of its drivers -- and Uber is likely right behind it.




Lyft has announced that it will cease all of its rideshare operations throughout California from 23:59 PT today, August 20. It is in response to the State's proposal to revise how its drivers are to be classified as employees instead of independent contractors.

"This is not something we wanted to do, as we know millions of Californians depend on Lyft for daily, essential trips," said the company in a statement. "We're personally reaching out to riders and drivers to share more about why this is happening, what you can do about it, and to provide some transportation alternatives."

According to Lyft, the proposals coming from politicians in Sacramento are ones that "4 out of 5 [of our] drivers don't support." Lyft says that the changes would mean the company having to implement an "overhaul of [our] entire business model."

"We don't want to suspend operations," it continues. "We are going to keep up the fight for a benefits model that works for all drivers and our riders."

Lyft is asking users to sign a petition to defeat ballot Prop 22, which is due to be debated in November.

In the meantime, Lyft is suggesting alternatives to its rideshare services. These chiefly involve using its bikes and rentals, or public transport.

Lyft's major competitor, Uber, has said that a shutdown is possible at the same time. It has yet to confirm that it will do so, though.

Founded in 2012, Lyft completed its ridesharing coverage of California in 2017. In the same year it also announced that it was planning to deploy self-driving cars in the San Francisco area.

Update August 20, 3:24 P.M. Eastern Time: Uber and Lyft have been granted a temporary reprieve from worker reclassification by the courts
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Comments

  • Reply 1 of 29
    gatorguygatorguy Posts: 23,171member
    A perfectly appropriate response IMO. 
    tylersdadrandominternetpersonrazorpitAlex1Nkingofsomewherehotmuthuk_vanalingam
  • Reply 2 of 29
    I’m confused. Lyft paid for YES on Prop 22, why would it ask to defeat ballot Prop 22?

    https://prop22facts.com/
  • Reply 3 of 29
    DAalsethDAalseth Posts: 1,729member
    gatorguy said:
    A perfectly appropriate response IMO. 
    I agree. Uber styled ride share systems, of which Lyft is one are a horrible, abusive return to to Dickensian piecework. This abuse of workers must be stamped out with all force possible, and if the state has to step in I completely support it.

    Uber: Replacing good jobs with gig anxiety. 
    ronnOferAlex1Ntundraboy
  • Reply 4 of 29
    SpamSandwichSpamSandwich Posts: 33,408member
    DAalseth said:
    gatorguy said:
    A perfectly appropriate response IMO. 
    I agree. Uber styled ride share systems, of which Lyft is one are a horrible, abusive return to to Dickensian piecework. This abuse of workers must be stamped out with all force possible, and if the state has to step in I completely support it.

    Uber: Replacing good jobs with gig anxiety. 
    What are you talking about? Uber and Lyft are not career choices, they are like waiting tables, a means for a person to earn extra income fast. And their drivers for the most part love doing the work because it means they can work flexible hours. California wants everyone in a union. That’s what these laws are about. Unions control this State and it’s going down the shitter thanks to their stranglehold.
    bshankmike1mrmacgeektylersdadrandominternetpersonrazorpitviclauyycandrewj5790larryjwgilly33
  • Reply 5 of 29
    maestro64maestro64 Posts: 5,005member
    I feel bad for the people living in Calf today, the people running this state have no clue what they are doing. They living in an ideal world which does not exist and the citizens are paying the cost.

    This happen because a few people decide to compliant and thought they could pay all their bill on being a cab driver using all their own resources. Then woke up one day and realize what they were making did not cover their cost and decide they should be employee.

    This new law affected more than just Gig workers, it affected people who get payed big $ to be consultant, this force them to set up LLC and be an employee of the LCC and then contract out their services, which they have to pay the government $500 each year renew the LLC business license.

    Then add in the rolling blackout Calf is forcing onto their citizens, because they shut down all their power generation plants and forgot solar power does not work at night and windmills do not product as much energy at night since winds slow down when the sun goes down. The have more than enough power during the day, but not at night. 

    Got some really bright people running the state in Calf.




    F_Kent_DSpamSandwichmrmacgeekviclauyyc
  • Reply 6 of 29
    ronnronn Posts: 449member
    Bye!! They'll adapt or stay out. Hope NYC/NYS forces them out next.
    tmayOfer
  • Reply 7 of 29
    DAalsethDAalseth Posts: 1,729member
    DAalseth said:
    gatorguy said:
    A perfectly appropriate response IMO. 
    I agree. Uber styled ride share systems, of which Lyft is one are a horrible, abusive return to to Dickensian piecework. This abuse of workers must be stamped out with all force possible, and if the state has to step in I completely support it.

    Uber: Replacing good jobs with gig anxiety. 
    What are you talking about? Uber and Lyft are not career choices, they are like waiting tables, a means for a person to earn extra income fast. And their drivers for the most part love doing the work because it means they can work flexible hours. California wants everyone in a union. That’s what these laws are about. Unions control this State and it’s going down the shitter thanks to their stranglehold.
    They are replacing cab companies and limo companies, even shuttle bus services, all good jobs with benefits, with crap jobs with no future. All to make some 1% guy richer. We as a society can and should do better then that.

    edited August 2020 tmayronnOfer6502StrangeDaysAlex1Nlarryjw
  • Reply 8 of 29
    robin huberrobin huber Posts: 3,478member
    Time for a start-up to step in and offer an ethical alternative. Maybe a non-profit model where drivers are stakeholders. F an IPO. 
    ronnOferAlex1Nkingofsomewherehot
  • Reply 9 of 29
    mike1mike1 Posts: 2,749member
    DAalseth said:
    DAalseth said:
    gatorguy said:
    A perfectly appropriate response IMO. 
    I agree. Uber styled ride share systems, of which Lyft is one are a horrible, abusive return to to Dickensian piecework. This abuse of workers must be stamped out with all force possible, and if the state has to step in I completely support it.

    Uber: Replacing good jobs with gig anxiety. 
    What are you talking about? Uber and Lyft are not career choices, they are like waiting tables, a means for a person to earn extra income fast. And their drivers for the most part love doing the work because it means they can work flexible hours. California wants everyone in a union. That’s what these laws are about. Unions control this State and it’s going down the shitter thanks to their stranglehold.
    They are replacing cab companies and limo companies, even shuttle bus services, all good jobs with benefits, with crap jobs with no future. All to make some 1% guy richer. We as a society can and should do better then that.


    That's socialist BS. You're removing freedom of choice from both the consumer and the driver. And where do all cab and limo drivers get benefits? Many, if not most are part time or independent operators.
    SpamSandwichtylersdadrazorpittnet-primaryviclauyycandrewj5790
  • Reply 10 of 29
    sflocalsflocal Posts: 5,734member
    DAalseth said:
    DAalseth said:
    gatorguy said:
    A perfectly appropriate response IMO. 
    I agree. Uber styled ride share systems, of which Lyft is one are a horrible, abusive return to to Dickensian piecework. This abuse of workers must be stamped out with all force possible, and if the state has to step in I completely support it.

    Uber: Replacing good jobs with gig anxiety. 
    What are you talking about? Uber and Lyft are not career choices, they are like waiting tables, a means for a person to earn extra income fast. And their drivers for the most part love doing the work because it means they can work flexible hours. California wants everyone in a union. That’s what these laws are about. Unions control this State and it’s going down the shitter thanks to their stranglehold.
    They are replacing cab companies and limo companies, even shuttle bus services, all good jobs with benefits, with crap jobs with no future. All to make some 1% guy richer. We as a society can and should do better then that.

    The traditional cab industry was corrupt.  Don't get me started on the medallion system either.

    I've been an independent software engineer for decades, and what California did was essentially put my own livelihood in jeopardy as well.  Screw them.  They wanted the benefits of being independent, yet wanted companies to pay for them as regular employees?  I have zero sympathy for those drivers.  If you can't make enough as a full-time Uber/Lyft driver, get another job.  No one else should have to bear the responsibility of your life choices.

    I'm glad Lyft/Uber gave California the middle-finger.  The politicians will be the cause of many California jobs leaving the state due to their hostile anti-business practices.
    mrmacgeektylersdadmike1Alex1Nmuthuk_vanalingam
  • Reply 11 of 29
    F_Kent_DF_Kent_D Posts: 63unconfirmed, member
    maestro64 said:
    I feel bad for the people living in Calf today, the people running this state have no clue what they are doing. They living in an ideal world which does not exist and the citizens are paying the cost.

    This happen because a few people decide to compliant and thought they could pay all their bill on being a cab driver using all their own resources. Then woke up one day and realize what they were making did not cover their cost and decide they should be employee.

    This new law affected more than just Gig workers, it affected people who get payed big $ to be consultant, this force them to set up LLC and be an employee of the LCC and then contract out their services, which they have to pay the government $500 each year renew the LLC business license.

    Then add in the rolling blackout Calf is forcing onto their citizens, because they shut down all their power generation plants and forgot solar power does not work at night and windmills do not product as much energy at night since winds slow down when the sun goes down. The have more than enough power during the day, but not at night. 

    Got some really bright people running the state in Calf.


    This is what you get when you have nothing but ultra liberals running anything. Push regulation to the point you drive out business and all forms of private innovation. 



    mrmacgeek
  • Reply 12 of 29
    SpamSandwichSpamSandwich Posts: 33,408member
    DAalseth said:
    DAalseth said:
    gatorguy said:
    A perfectly appropriate response IMO. 
    I agree. Uber styled ride share systems, of which Lyft is one are a horrible, abusive return to to Dickensian piecework. This abuse of workers must be stamped out with all force possible, and if the state has to step in I completely support it.

    Uber: Replacing good jobs with gig anxiety. 
    What are you talking about? Uber and Lyft are not career choices, they are like waiting tables, a means for a person to earn extra income fast. And their drivers for the most part love doing the work because it means they can work flexible hours. California wants everyone in a union. That’s what these laws are about. Unions control this State and it’s going down the shitter thanks to their stranglehold.
    They are replacing cab companies and limo companies, even shuttle bus services, all good jobs with benefits, with crap jobs with no future. All to make some 1% guy richer. We as a society can and should do better then that.

    That’s a position which ignores the value of competition and the inevitability of change for corrupt cities which have had too-tight relationships with cab companies providing bad service at high prices. 

    Why do you think Uber and Lyft got so big so fast? They provided something people value, on both the driver and the passenger side of the equation.
    mrmacgeekrazorpittnet-primarymike1andrewj5790Alex1Nkingofsomewherehotmuthuk_vanalingam
  • Reply 13 of 29
    SpamSandwichSpamSandwich Posts: 33,408member

    Time for a start-up to step in and offer an ethical alternative. Maybe a non-profit model where drivers are stakeholders. F an IPO. 
    I don’t agree that there’s anything wrong with either Uber or Lyft, but there is another alternative which involves skipping all of the licensing and safety requirements cities demand. There’s an app which connects drivers and riders directly called “Arcade City” which I’ve known about for years because it’s a blockchain-based service.

    https://twitter.com/arcadecityhall/status/1293734138160336897?s=21
    razorpitAlex1N
  • Reply 14 of 29
    tmaytmay Posts: 5,430member
    DAalseth said:
    DAalseth said:
    gatorguy said:
    A perfectly appropriate response IMO. 
    I agree. Uber styled ride share systems, of which Lyft is one are a horrible, abusive return to to Dickensian piecework. This abuse of workers must be stamped out with all force possible, and if the state has to step in I completely support it.

    Uber: Replacing good jobs with gig anxiety. 
    What are you talking about? Uber and Lyft are not career choices, they are like waiting tables, a means for a person to earn extra income fast. And their drivers for the most part love doing the work because it means they can work flexible hours. California wants everyone in a union. That’s what these laws are about. Unions control this State and it’s going down the shitter thanks to their stranglehold.
    They are replacing cab companies and limo companies, even shuttle bus services, all good jobs with benefits, with crap jobs with no future. All to make some 1% guy richer. We as a society can and should do better then that.

    That’s a position which ignores the value of competition and the inevitability of change for corrupt cities which have had too-tight relationships with cab companies providing bad service at high prices. 

    Why do you think Uber and Lyft got so big so fast? They provided something people value, on both the driver and the passenger side of the equation.
    Gee, if only Uber/Lyft's business model was successful as is, but even with contractors sans benefits, both companies are losing money. 

    Their model is a perfect example of privatize profits, socialize costs. Those contract/independent operators do not pay nor are eligible for workmen's comp if injured on the job, so that then falls upon the State (Medicaid) if the drivers do not have health insurance. Fix those costs that would otherwise be born by the State, some of those fixes which are in Prop 22, and raise rates to the customer, to cover those costs, and provide a profit, and then you have a sustainable model.
    XedronnOferStrangeDaysAlex1Nstompy
  • Reply 15 of 29
    BeatsBeats Posts: 2,531member
    Is DiDi ever coming to the U.S.?

    And does Apple own part of DiDi?
  • Reply 16 of 29
    JinTechJinTech Posts: 775member
    DAalseth said:
    DAalseth said:
    gatorguy said:
    A perfectly appropriate response IMO. 
    I agree. Uber styled ride share systems, of which Lyft is one are a horrible, abusive return to to Dickensian piecework. This abuse of workers must be stamped out with all force possible, and if the state has to step in I completely support it.

    Uber: Replacing good jobs with gig anxiety. 
    What are you talking about? Uber and Lyft are not career choices, they are like waiting tables, a means for a person to earn extra income fast. And their drivers for the most part love doing the work because it means they can work flexible hours. California wants everyone in a union. That’s what these laws are about. Unions control this State and it’s going down the shitter thanks to their stranglehold.
    They are replacing cab companies and limo companies, even shuttle bus services, all good jobs with benefits, with crap jobs with no future. All to make some 1% guy richer. We as a society can and should do better then that.

    I for one would prefer to get into a cleaner, safer car, with somewhat direct communication to the company in case something goes wrong, i.e. Lyft. Most taxis are dirty, and a shell of a car, at best, and will milk you for cab fare, intentionally going the wrong direction and then when you try to talk to them they pretend they don't speak English. This has happened to me countless times. With Lyft, they will ask if you have a preferred route, the cars are new, and clean, and if an issue arrises, I can reach out to Lyft and they will generally take care of the issue. It's also nice to know when to expect to be picked up and dropped off so I know how to plan my day. 
    viclauyycAlex1N
  • Reply 17 of 29
    gatorguygatorguy Posts: 23,171member
    Beats said:
    Is DiDi ever coming to the U.S.?

    And does Apple own part of DiDi?
    Uber owns part of Didi, about 16% according to what I've read. Apple partnered with them too a few years back but I've not seen any mention since. 
    BeatsAlex1N
  • Reply 18 of 29
    mazda 3smazda 3s Posts: 1,607member
  • Reply 19 of 29
    ronnronn Posts: 449member
    tmay said:

    Gee, if only Uber/Lyft's business model was successful as is, but even with contractors sans benefits, both companies are losing money. 

    Their model is a perfect example of privatize profits, socialize costs. Those contract/independent operators do not pay nor are eligible for workmen's comp if injured on the job, so that then falls upon the State (Medicaid) if the drivers do not have health insurance. Fix those costs that would otherwise be born by the State, some of those fixes which are in Prop 22, and raise rates to the customer, to cover those costs, and provide a profit, and then you have a sustainable model.
    Bingo! So many lamented the damage Walmart did to smaller grocers/stores with their predatory business model. Uber and Lyft do the same thing. They pass on the costs of taking care of their workers (they're not contractors in any sense of the word) on to the general public. The law is imperfect, but must be used to correct the abuses. Fine-tune it to encompass all "contractors" and protect workers at the same time.
    tmayStrangeDaysAlex1N
  • Reply 20 of 29
    SpamSandwichSpamSandwich Posts: 33,408member
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