Uber, Lyft face higher costs regardless of Calif. legal battle outcome

October 20, 2020

Reclassifying drivers as employees would mean Uber and Lyft will most likely cut down service, especially in more rural and less-profitable areas, Manhattan Venture Partners’ Rao said. The number of hours drivers can work will be limited, and the flexibility of the job will be gone, Rao said.

“So the drivers are going to lose because they’re going to have less hours, and the passengers are going to lose because they’re not going to have service as they have now,” Rao said, adding that the costs of rides will also go up.