BERKELEY, Calif. (AP) – An appeals court has allowed ride-hailing giants Uber and Lyft to continue treating their drivers as independent contractors in a decision that will give the two companies a few more months to protect their business models in a key market.
Both companies had threatened to shut down if a lower-court went into effect Friday morning had forced them to treat all drivers as employees, a change that could have crippled them financially.
At issue is a decision that could re-shape the so-called gig economy as drivers, delivery workers and others who work for popular apps on an as-needed basis seek better benefits that full-time employees typically enjoy.
