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The General Services Administration issued the potentially $810 million contract last week.
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Backed by Uber, Lyft, and food delivery apps such as Postmates, Proposition 22 exempts app-based drivers from Assembly Bill 5, the California law that created a stricter criteria for independent contractors.
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According to a CarGuru's study, 28% of respondents said they expect to use taxis or ridesharing services less, and 11% expect not to use the services at all.
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Preliminary analysis suggests the new wage standard would improve pay for 84% of drivers, the mayor's office said.
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Superior Court Judge Ethan Schulman said the companies have violated California labor law by labeling its drivers as contractor workers instead of employees.
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The lawsuits stem from Uber and Lyft classifying drivers as independent contractors instead of employees — an alleged violation of state labor laws.
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Lyft gets a ready supply of vehicles while Sixt gets an alternative outlet for its fleet — yet this partnership’s potential long-term evolution could be the true art in this deal.
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Sixt will provide fleet vehicles through the Lyft app in Seattle, Las Vegas, and Miami, with expansion to all cities within the Sixt rental network in the U.S. in the coming months.
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The expansion comes as the province has moved into Phase 3 of coronavirus reopening.
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Previously, Lyft suspended all shared ride options to help stop the spread of COVID-19.
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