Uber and Lyft consider pulling out of California

The American ridesharing companies Uber and Lyft are reported to be considering ceasing operations in their home state of California over a legal row concerning the status of their employees.

Reuters reports that a judge in the state has refused to give them more time to appeal against a decision to designate drivers as state employees. The two companies say this ruling means they’d need to restructure their businesses.

It’s all to do with a row which also affects status in the UK about whether drivers can be classified as contractors, which has a bearing on benefits such as minimum wage, sick and holiday pay.

Reuters adds that neither company is profitable, and both have suffered steep ridership declines during the coronavirus crisis. They have also said drivers prefer remaining independent.

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