Uber and Lyft are under threatAugust 16, 2020
Popular in the United States, passenger transportation services are faced with an unexpected decision by a Californian court, which changes the way they work. Themis’ servants demanded that the companies register all drivers cooperating with them.
California authorities have asked Uber and Lyft to transfer their drivers to a new status – full-time workers. They were previously considered independent contractors. Because of this seemingly simple requirement, the work of these services in the state may stop.
Both firms have already announced that they will have to suspend operations as soon as the court ruling takes effect. The reason is that companies will not be able to fulfill the requirements of the authorities. And not the least role in this was played by the COVID-19 pandemic, due to which many companies around the world are suffering serious financial losses.
The talk about retraining drivers working for Uber and Lyft came after the new law appeared. It implies that each company must compensate its employees for medical expenses, as well as provide insurance against unemployment. Uber and Lyft have so far bypassed this requirement (the law has been in effect since early 2020) by naming their employees as independent contractors. The court has a different opinion on this matter.
The transition to new working conditions for these firms will entail restructuring and mass layoffs.
Previously, we said that Hyundai and Uber presented a concept of a flying electric taxi. The companies have joined forces to create the future air travel network. The Korean brand will take over the development and production of aircraft, while Uber will take over the infrastructure.
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