The reality of life in California under AB5 is hitting hard this week.
Lyft just made the official announcement: They are shutting down in California until the whole mess is settled. Uber has warned they will do the same, though as of this writing (noon, August 20) they haven’t posted anything official.
This is the fallout from AB5 that’s been waiting to happen. People are wondering if delivery apps are next. I speculated that they may be, but only after the state sues them and forces them into a corner like they did Uber and Lyft.
What now? Gig companies are banking on getting Prop 22 passed. Prop 22 is a ballot initiative that would allow gig companies to continue using independent contractors in return for certain guarantees and protections for contractors.
How would Prop 22 change things for independent contractors who deliver for gig apps like Grubhub, Doordash, Postmates, Uber Eats, Instacart, Shipt and others?[Read more…] about California Prop 22 vs AB5: How Would it Impact Delivery Contractors (Grubhub Doordash Postmates Uber Eats etc.)?