[Ed. – The court extended the deadline for Lyft and Uber to indicate how they will comply with the provisions of AB5, which requires them to treat contract drivers as employees. AB5 has been mass-slaughtering jobs in the state at an alarming rate; Lyft originally planned to suspend operations Thursday night, affecting probably some 200,000 to 300,000 drivers (the number uncertain due to the COVID lockdown since March). The company now has until 25 August, if additional planning will do any good. It’s not clear how it can. The business model for the companies can’t withstand the expense of treating drivers as employees. Only unions and radical leftists think AB5 is a good idea. It has forced many independent contractors to simply leave the state and start again elsewhere.]
Earlier Thursday, Lyft said in a blog post it would suspend service in the state as of midnight PT.
Both companies now have until 5 p.m. PT on August 25 to file written statements agreeing to expedited procedures required by the order. If they agree to the terms, the stay will remain in place until the appeal is resolved.
“While we won’t have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers,” a Lyft spokesperson said in a statement following Thursday’s court order. “That’s the solution on the ballot in November, and it’s the solution drivers want because it preserves their ability to earn and to use the platform as they do now …”