Uber and Lyft shutdown in California averted as judge grants emergency stay
A California appeals court judge blocked an order requiring Uber and Lyft to classify drivers as employees, averting an expected shutdown of the ride-sharing services in California. The court granted Uber and Lyft a temporary stay while their appeals process play out.
Lyft had already announced it was planning to temporarily cease operations in the state earlier today, and Uber CEO Dara Khosrowshahi had said the same about his company in an interview yesterday.
But the companies won an 11th hour reprieve from the California Court of Appeals hours before the shutdown was expected to go into effect. Uber and Lyft will now have until October to convince the court to throw out the order that it employ its drivers. If they are unsuccessful, the companies will be back where they started, and may again decide to shutdown.