Uber, Lyft Face Existential Threat In California

News Reports
Posted on September 3, 2019
Will TNC drivers become employees? (Photo via Unsplash user Barna Bartis)

Will TNC drivers become employees? (Photo via Unsplash user Barna Bartis)

An bill working its way through the California Legislature could drastically alter how transportation network companies (TNCs) do business by requiring them to classify their gig-contract drivers as employees.
Uber and Lyft are facing an existential threat in AB5, which could send them into a tailspin. They know they are losing, and are looking for ways to cope in an AB5-driven labor reality.

The Verge article here

WHAT'S NEXT: GCLA To Address TNC Labor Bill At Sept. 17 Meeting

Related Topics: California operators, driver pay, employee vs independent contractor, employee wages, independent contractor issues, legislation, Lyft, regulatory enforcement, state regulations, TNCs, Uber

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Comments ( 2 )
  • Chuck Cotton

     | about 8 months ago

    Five Federal investigations are ongoing with Uber and more expected. So CEO Dara Khosrowshahi announced on a recent 8/16 CNBC interview, " We are not a rideshare company. We are a transportation company." The key question is whether Uber will comply with the existing US CODES, State transportation statutes, and municipal ordinances? If not, the Uber bubble will burst shortly. The good news is Uber certainly can afford their conversion to regulations and driver classification to EMPLOYEES. If the CEO takes immediate action to comply as well as cleanup all existing and pending law suits and then compete fairly with the existing livery industry, Uber may survive. The same goes for Lyft.

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