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Franchise Model No Silver Bullet For Ride-Hailing Giants

Tiomkin Law Offices of Elliott Tiomkin > Legal News  > Franchise Model No Silver Bullet For Ride-Hailing Giants

Franchise Model No Silver Bullet For Ride-Hailing Giants

Law360 (August 21, 2020, 10:37 PM EDT) — Although a state appeals court recently spared Uber and Lyft from having to make good on threats to freeze operations in California, the companies may end up adopting a new business model to avoid violating the Golden State’s new worker classification law. But experts say that’ll only tee up a different set of legal fights.

After an appeals court on Thursday conditionally stayed a trial court’s injunction that would have forced the two companies to reclassify drivers as employees by midnight Friday, they each put on hold plans to suspend services in the state.

The injunction, if allowed to stand, would…

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