Lyft plans to shut down in California around midnight

This story is developing.

SAN FRANCISCO — Lyft said Thursday it plans to shut down in California just before midnight, as a ruling forcing the company to make its drivers employees takes effect.

Uber and Lyft have said they would suspend their ride-hailing service here beginning Friday unless a California Superior Court decision requiring them to give drivers full employment was delayed while they appeal. A California appeals court has yet to rule on their pleas for a stay, although a ruling is expected as soon as Thursday.

The companies were given 10 days to make their drivers employees after a San Francisco judge found they had failed to follow the state’s landmark employment law, known as AB5, which specifies that companies must prove its independent contractors are free from their control and performing work outside their core business.

“This is not something we wanted to do, as we know millions of Californians depend on Lyft for daily, essential trips,” Lyft said in a blog post.

Uber has similar plans to suspend service around midnight Friday, though both companies are awaiting decisions on their pleas for a stay.

Critics lament that a shutdown was avoidable because the companies have had nearly a year to comply with AB5′s employment provision. They say Uber and Lyft would leverage a service suspension to drum up support for a November ballot measure, Proposition 22, that would allow them to avoid employing drivers by establishing a third class of worker with limited benefits.

Uber has said it is exploring a franchising model that was shift the employment burden from headquarters to independent operations that seek to run ride-hailing services under its banner, similar to black car and livery fleets, or the cab industry. Lyft, too, has explored avenues for employment, though company officials declined to provide details.

It is unknown how long a ride-hailing shutdown would last. Uber and Lyft said they would need months to retool their businesses to support an employment model.

Uber will not suspend Uber Eats, company officials said, because the lawsuit concerned Uber and Lyft and made arguments specific to their ride-hailing businesses. But food and grocery delivery services, Doordash, Postmates and Instacart, have joined Uber and Lyft in pouring $110 million into the ballot initiative, wary of being targeted as well.

On Wednesday Doordash sent customers an email urging them to support Proposition 22, telling them “deliveries you’ve grown to rely on is at risk.”