Episode 85: Will AB5 Force Doordash Grubhub Uber Eats to Shut Down in California?

Deliver on Your Business

The AB5 is hitting the fan.
California has won an injunction forcing Uber and Lyft to use employees as of August 21. As it stands right now, they state they intend to shut down there temporarily.
What does this mean for delivery contractors with Grubhub Doordash Uber Eats Postmates Instacart and others?
********************************
BUT BEFORE WE DIVE IN:

Are you signed up yet for the 31 Day Courier MBA email course? Starting September 1, we'll send out 31 daily emails helping you Master your Business Attitude (MBA - See what I did there?).
We're limiting the number of participants to make it manageable.
And oh yeah: I'm not charging for the course.
**********************************
Sign up now for the 31 Day Courier MBA: 31 Days to a more profitable delivery business.
You can read up on the topic for today on the associated blog post for Episode 85.
We look back at some things I said in Episode 52 and Episode 51.
Here are links to articles we reference
TechCrunch article announcing the state's preliminary injunction against Uber and Lyft. (Note, in the podcast I mentioned that nothing was decided on the actual case. I should clarify - there was a state court decision that Uber and Lyft had misclassified employees. However, the companies are appealing - the preliminary injunction is meant to enforce that ruling rather than have the companies drag it out in court.
Instacart and Doordash are probably next, having been sued by local governments.
This Marketwatch article explains why Uber Eats is not included in the injunction
California may themselves be in violation of AB5 - hiring contractors at the EDD
The New York Times reports that Uber and Lyft are looking into a franchise model.
Here's our article from March about the New York court of appeals ruling on Postmates.
ProAct includes language making the ABC test a national law. Joe Biden has pledged to sign it.
Our article on what AB5 means nationwide and on why the gig economy might come to an end.
The importance of having an exit plan
More about the EntreCourier

You can get more tips and ideas at our website, Entrecourier.com
Our Podcast page is at DeliverOnYourBusiness.com
Sign up for our weekly Courier Nation Motivation email
Get in touch with us
Follow us on Facebook
Folow us on Twitter
Connect with us on Linkedin
Follow us on Instagram