Converting Ride Share to Franchise Model

In response to pending litigation over the status of ride share drivers in California, it has been proposed that ride share companies may shift to a franchise model. What does that mean?

How would a ride share franchise work? The ride share company would icensing their brands to operators of vehicle fleets in California

How would this work around the employee-independent contractor legal issue in California? The ride share company would be at an arms length from the driver via the fleet franchise and the employment status of drivers would not apply to the ride share company

What’s next?

• pending legal action during the stay that allows ride share to continue as is
• November 2020 ballot measure to remove the provisions of AB 5 that defined ride share drivers as employees

NY Times | Uber and Lyft Consider Franchise-Like Model in California

Tech Crunch | Judge grants Uber and Lyft temporary stay in driver reclassification case