
Supporters of AB 5 have said that the legislation is necessary, as some companies have exploited workers for decades under unfair labor contracts.
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The policy comes amid driver-led protests outside Uber's San Francisco's headquarters.
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The cap was originally implement last August, in an effort to address growing traffic congestion in the city, as a one-year ban on new vehicle licenses.
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Splend primarily rents vehicles to Uber drivers, in addition to supplying other ride-hailing and -sharing groups such as as Bolt, Kapten, and Via Van.
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Currently, there are about 90,400 ride-hailing drivers in Canada.
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A case brought against Uber by Los Angeles-based Diva Limousine argues that Uber's business model — as it pertains to drivers — financially harms its competitors.
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A key factor in the board's decision was the ability for Uber drivers to choose when to work.
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The strike, planned ahead of Uber's Friday initial public offering, is being backed by the New York Taxi Workers Alliance.
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Uber sued reportedly out of fear the cap will be made permanent.
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Critics of the minimum wage mandate, mainly ride-hailing companies, say that the proposal will make rides more expensive.
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