Ride-hailing could Shut Down in California, as Judge Denies Delay for Uber and Lyft.

Appeals by Uber and Lyft were on Thursday denied, the appeal was made by both companies for an extension of the injunction given to them to classify their drivers as employees and not independent contractors.

Judge Ethan Schulman said on Thursday that he was not convinced that any extension of the court injunction was required, and thus denied the extension of the 10 days which was initially given.

This move against Uber and Lyft is so they can give every benefit that is deserved by their employees. The court has maintained its stand that both companies should comply with Assembly Bill 5, a law passed last year in California and became effective January 1, 2020.

Los Angeles City Attorney, Mike Feuer said “Rideshare drivers are entitled to the full protections afforded to employees, and it’s long past time that Uber and Lyft stop shifting their responsibilities to California taxpayers,”

John Cote who is a spokesman for City Attorney Dennis Herrera of San Francisco, which happens to be one of the cities that pushed for the lawsuit against Uber and Lyft said, “This was just another delay tactic by Uber and Lyft,”.

The attorneys that filed a lawsuit against the ride-sharing companies are attorneys from cities which include, San Diego, San Francisco, Los Angeles, and California.

The shutdown of activities of both companies in those states would be very inconvenient for those who reside and work there in a time like this, with the current coronavirus pandemic which is plaguing countries, especially in the U.S.

A worker, Kevin Murphy in San Francisco said he has been making use of Lyft in the course of his work. To him, it is faster and safer than taking public transportation, considering how bus routes are also limited at the moment.

There is no doubt, this is going to be challenging for those who live and work in these cities. But on the other hand, if it goes through, it is going to be very beneficial for the drivers who the attorneys seem to be fighting for, as they try to ensure that both companies comply with the AB 5.

Anne Ahola Ward, who is a small business owner in San Francisco revealed that she also makes use of Lyft in going about her daily activities. This would no doubt be challenging for her. She said “I manage to pay my workers a salary and give them benefits. You should take care of the people that are core to your business.” Also stating that Uber and Lyft are not going to have any business without their drivers who are a significant part of their business.

The CEO of Uber, Dara Khosrowshahi said the company's ride-hailing services could be stopped in the state, as they wait till November, as they have been asking Californian voters to decide if they should be exempted from AB 5, as well as Lyft and other gig companies.

While the ride-hailing services of Uber would be brought to a halt, Uber Eats will be in continuous operation. Uber Eat has already seen high demand in its services as a result of the pandemic, even as demand for rides reduced. With the suit against them, more drivers will have to switch to Uber Eats as some have done.