They couldnt meet that deadline, so they planned to shut down in the state instead.
Uber Eats services were not part of the plan.
No Interest Til Almost 2027?
On Jan. 1, a newlabor law called AB-5went into effect.
This law sets new criteria for businesses that rely on independent contractors.
The law is far-reaching and affects a variety of industries.
Before it was approved by lawmakers, the companies spent nearly $100 million campaigning against it.
When the law passed in September 2019, Ubers chief legal officer Tony Westarguedthat AB-5 doesnt apply to Uber.
But that wasnt enough.
For customers, the companies argue that the reclassification will cause service hiccups and higher fees.
For drivers, they say becoming a W-2 employee will take away from their flexibility and independence.
Pleas to vote yes on Prop 22 were included in both companies shutdown announcements.
California voters will decide on it in the November elections.
Adam Hardy is a staff writer at The Penny Hoarder.
He covers the gig economy, entrepreneurship and unique ways to make money.
Read his latest articles here, or say hi on Twitter@hardyjournalism.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
