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Lyft Inc. said Thursday it will suspend its ride-hailing services in California at midnight as a court order takes effect forcing the company to treat its drivers as employees, rather than independent contractors.
“This is not something we wanted to do, as we know millions of Californians depend on Lyft for daily, essential trips,” the company said in a blog post.
The decision to suspend service in the most populous U.S. state marks an unprecedented escalation in a long-running fight between regulators, labor groups and gig economy companies that have upended traditional employment models.
This is a developing story and will be updated.