Lyft: "I double-dog dare you!"
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wrote on 20 Aug 2020, 21:07 last edited by
A California appeals court extended the length of time Uber and Lyft will have to comply with an order requiring them to reclassify rideshare drivers as employees. As a result, Uber and Lyft said they would continue operating in California during the stay after threatening to suspend service.
The temporary reprieve gives Uber and Lyft until 5 p.m. PT on August 25 to file written statements agreeing to expedited procedures stated in the order.
Uber and Lyft’s stocks were both up about 6% following the order. Both stocks had fallen into the negative after Lyft announced earlier Thursday that it would suspend its service in California at midnight PT but reversed its decision after the appeals court granted additional time. An Uber spokesperson said the company would continue to operate in California during the stay.
“We are glad that the Court of Appeals recognized the important questions raised in this case, and that access to these critical services won’t be cut off while we continue to advocate for drivers’ ability to work with the freedom they want,” an Uber spokesperson said in a statement. Uber had not announced a decision to suspend service prior to the order.
Top executives at Uber and Lyft both said last week they’d likely have to suspend service in the state to comply with the court order. The lower court granted a ten day stay on the preliminary injunction but rejected to extend it. That stay was set to expire at the end of the day Thursday.