SAN FRANCISCO - Lyft will suspend rideshare operations in California beginning late Thursday night, the company announced in a blog post.
Uber and Lyft threatened to pull out of California by the end of the week if they were forced to classify their drivers as employees instead of independent contractors.
While rideshare options will not be available, the company said customers are still able to rent scooters or cars from the company in Los Angeles County.
Lyft also shared alternative transportations options for the state's other 57 counties.
In a statement, Lyft said the new model lawmakers in Sacramento are pushing would result in the following:
• Passengers would experience reduced service, especially in suburban and rural areas
• 80% of drivers would lose work and the rest would have scheduled shifts, and capped hourly earnings
•Lower-income rider trying to make it to essential jobs and medical appointments would be faced with affordable prices (38% of Lyft rides in California begin or end in low-income areas that have few transit options already).
In a statement, the company also said “We’ve spent hundreds of hours meeting with policymakers and labor leaders to craft an alternative proposal for drivers that includes a minimum earnings guarantee, mileage reimbursement, a health care subsidy, and occupational accident insurance, without the negative consequences.”
Lyft wants California voters to determine what happens next when they go to the polls in November and make their choice on Prop 22.
It was not immediately known if Uber would follow suit.