Uber and Lyft Consider Operating Franchises to Bypass California Law
Rather than pulling out of California, as Uber (NYSE: UBER) has threatened to do over being forced to classify its drivers as employees instead of independent contractors, the ridesharing app and its peer Lyft (NASDAQ: LYFT) are considering turning their business in the state into franchise operations.
By licensing the Uber and Lyft brand to vehicle fleet owners in California, the companies could do an end run around the controversial state law that threatens to turn some gig workers into the unemployed.
Lyft's president told analysts last week during its earnings conference call, "If our efforts here are not successful [in thwarting the law's application to the company], it would force us to suspend operations in California."
Source Fool.com
