After London and Germany, Colombia bans Uber. Ride-hailing firms join forces in California to fight new gig economy law.
Your Uber Has Disappeared: After London and Germany, now Colombia has admonished Uber. On Friday, the South American nation ordered the ride-hailing company to cease operations immediately after a judge ruled the company violated competition rules.
Uber has more than 2.3mn active users in Colombia and around 88,000 driver partners.
The lawsuit was filed by the Superintendency of Industry and Commerce (SIC). The SIC in a statement said Uber generated “a significant advantage in the market” by rendering transport services for individuals via its app.
Uber, meanwhile, said it rejected the ruling and immediately appealed it. Reuters
Lyft Down: The ride-hailing backlash continues. A California law regulating the gig economy is set to go into effect in January. And Uber and Lyft have joined forces to rally against the law, lest they are forced to classify their drivers as employees and not as independent contractors as they do currently. The former classification would require the ride-hailing giants to provide relevant benefits, including the minimum wage and paid sick days.
Uber and Lyft insist that they are not transportation companies but a technology platform that link drivers and passengers together. The legal battle that will follow will involve courts, regulators, activists, unions, and a $100mn war chest that ride-hailing companies have amassed to exempt them from the law. Read more here.
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