The general manager of the greeting app Lyft threatened to shut down the service in California, joining a similar warning made earlier this week by rival company Uber.
Threats to shut down the state service come after a San Francisco Supreme Court judge ruled earlier this week that Uber and Lyft should classify drivers as employees rather than independent contractors. The decision comes after California officials tried to bring companies into line with Bill 5, which places more restrictions on employee ratings.
Lyft CEO John Zimmer said Wednesday in a phone call with investors that the company could suspend operations for similar reasons Uber had mentioned.
“If our efforts here are not successful, they will force us to discontinue operations in California. Fortunately, voters in California can make their voices heard by voting yes on Prop 22 in November,”; Zimmer told calls, according to CNBC.
The judge gave a 10-day stand on the ruling, and Uber and Lyft said they plan to appeal.
Companies are also backing a move that will come out on the ballot in California in November that excludes concert companies, such as Uber and Lyft, from Bill 5.
Uber CEO Dara Khosrowshahi told MSNBC on Wednesday that he hoped the court would overturn the decisions until after the election. If not, he said the company would be forced to suspend its service for at least three months.
“We think we are in compliance with the laws, but if the court finds that we are not and they do not give us a stand to arrive in November, then we will have to close Uber until November, when voters decide,” he said. it.