Lyft to pause operations in California, stock recovers losses

Ride-hailing company Lyft Inc (NASDAQ: LYFT) confirmed it will cease operations in California as of 11:59 PM local time on Thursday to avoid being in contradiction to a new law on how it classifies drivers. ‘Not something we wanted to do’ Lyft said in a blog post suspending its operations in California is “not something we wanted to do.” However, it is a necessary action after a state judge ruled Lyft and other ride-hailing companies have until Friday to reclassify drivers as employees. Lyft and rival Uber Technologies Inc (NYSE: UBER) built their businesses on classifying drivers as independent contractors.