Lyft, the popular ride-sharing company posted an announcement on Thursday, that had shocked everyone.
Lyft said in its blog that it will be halting its operations on Thursday midnight.
On August 10th, a court ruling by Judge Ethan Schulman of the Superior Court of San Francisco decreed that companies such as Lyft and Uber should reclassify their drivers as employees rather than independent contractors within ten days.
However, according to Lyft, this is not what their drivers want.
According to them, their drivers enjoy their current set-up of “flexibility” and sense of control.
Hours after Lyft’s announcement, ABC7 reported that an “appeals court has allowed” Uber and Lyft to return to its business as usual “while an appeal works its way through the court.”
Uber said that they are glad of the court of appeals recognition of the “important questions” for Uber and Lyft’s case.
Lyft Wanted To Suspend Operations?
“This is not something we wanted to do,” the company said in its blog post after it announced its service suspension.
Millions of Californians use Lyft’s ride-sharing service for their “daily essential trips,” Lyft wrote.
Halting its services, according to the company is their way to continue its fight for a “benefits model that works” both for its drivers and riders.
According to Lyft, the company has been “advocating” for a benefit-model for years.
This model will ensure “a healthcare subsidy” and a “minimum earnings guarantee” for its drivers, they said.
However, politicians decided to push for a model that is far from what the drivers wanted, Lyft said.
Previously, both Uber and Lyft argued that the majority of their drivers want to maintain their “independence” while working.
However, the policies that are being pushed by the politicians in Sacramento would not be beneficial for its drivers and customers, as per Lyft.
According to them:
- There would be reduced service for riders,
- Around 80% of drivers might lose their work, and
- Lower-income riders would be charged with “unaffordable prices.”
The company urges its customers to support them by voting for Prop 22 in November to give its drivers more “benefits and flexibility.”
Conflicting Views On Lyft’s Position And The Court Of Appeals Decision
People have conflicting views about Lyft’s position on the matter.
On one hand, some people support the San Francisco courts’ ruling.
According to Sarah Kessler, the kind of model Lyft is pushing “could help the companies” but it doesn’t improve its driver’s “working conditions.”
Twitter user, Brian Merchant, posted his opinion on the Court of Appeals announcement.
Some people, on the other hand, especially Lyft’s and Uber’s drivers, are against the San Francisco Court’s ruling.
One Twitter user, Billy Espinosa, tweeted that he does not “want to be an employee [of Uber]” despite being its driver.