Lyft's president threatened to shut down its California operations over a court ruling requiring it to reclassify drivers as employees
Lyft and Uber have made similar kinds of threats in the past — and it's worked
in Chicago, Houston, Austin, and San Antonio in response to the cities' efforts to require drivers to undergo more rigorous background checks in order to work for the platforms. Both companies temporarily left Austin, and Uber also left San Antonio, before the regulations were revised or overturned with"Uber's threats to leave a market have been an effective tool of overturning regulations," the researchers concluded.
Uber and Lyft have deployed similar approaches in their effort to avoid having to comply with AB-5. The companiesthat would exempt rideshare and food delivery companies from the law.
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