The CEO of app-Lyiling-app Lyft threatened to shut down the service in California, and joined a similar warning issued earlier this week by rival company Uber.
The threats to service in the state come after a judge in San Francisco Superior Court earlier this week ruled that Uber and Lyft drivers should be classified as employees instead of as independent contractors. The ruling comes after California officials tried to force companies to pass Assembly Bill 5, which imposes more restrictions on employee classification.
Lift CEO John Zimmer said Wednesday in an interview with investors that the company may suspend operations for similar reasons Uber had cited.
“If our efforts here are not successful, it would force us to stop operations in California. Fortunately, California voters can make their voices heard by voting yes to Prop 22 in November, “Zimmer said of the call, according to CNBC.
The judge granted a stay of 10 days for the verdict, and Uber and Lyft said they plan to appeal.
The companies are also supporting a measure that will appear in the California vote in November that would free gambling companies, such as Uber and Lyft, from Assembly Bill 5.
Uber CEO Dara Khosrowshahi said on MSNBC on Wednesday that he hoped the court would abide by 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 following the laws, but if the court finds that we are not and they do not allow us to stay until November, then we should essentially shut down Uber until November if the voters decide,” he said.
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