AB 2293 bans drivers from using their personal policies and mandates that drivers have to be covered from the moment they turn on their app and look for customers.; Credit: Photo by Daniel X. O'Neil via Flickr Creative Commons

Amid all the talk about cutting-edge technology, much of Uber and Lyft’s success actually owes to that fact the ride-sharing companies have been able to exploit a basic loophole: The companies foist the cost of insurance on their drivers, but the drivers' insurance companies don’t know they are underwriting cars for hire, and even if drivers wanted to be honest and get a policy that would cover ride-sharing, they couldn’t, because no such policy exists.

AB-2293, introduced by Assemblywoman Susan Bonilla (D-Concord) and signed into law Wednesday by Governor Jerry Brown, tries to close the loophole by paving the way for insurance companies to offer hybrid personal/commercial policies by next summer.

Uber once derided the bill as a backroom deal between insurance companies and trial lawyers.

"The bill does nothing to enhance safety, yet compromises the transportation choices and entrepreneurial opportunities Uber offers Californians," the company wrote in a June blog post that encouraged customers to contact their representatives opposing the bill.

However, the company backed down and supported the legislation when Bonilla insurance requirements were lowered.

AB 2293 also specifically bans drivers from using their personal policies and mandates drivers have to be covered from the moment they turn on their app and look for customers, which is a response to the tragic accident on New Year's Eve in San Francisco when an UberX driver hit and killed a six year old child.

Uber argued that because the driver was waiting for a fare he wasn't working for the company at the time, so he wasn't covered by the company's insurance.

This week on Work Comp Matters, Steve and the guys talk about relevant issues for your employees, employers and independent contractors. In addition to the new Uber IPO and the…

The Supreme Court refuses to shield Uber and Lyft from California state labor lawsuits that seek back pay for tens of thousands of drivers.

Why are Washingtonians using the Empower ride-sharing app?

Uber and Lyft need to do more to support disabled passengers, especially those who are blind or visually impaired, according to protesters who gathered outside the companies’ headquarters on October 15. Wired spoke to protesters who shared stories about drivers passing them by or refusing to let them bring their guide dogs on a ride. […]

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How the ride-hailing chief’s good-guy image is paying off

Uber and Lyft drivers with Rideshare Drivers United and the
 Transport Workers Union of America conduct a ‘caravan protest’ outside the California Labor Commissioner’s office amidst the coronavirus pandemic on April 16, 2020 in Los Angeles, California. ; Credit: Mario Tama/Getty Images

California sued ride-hailing companies Uber and Lyft on Tuesday, alleging they misclassified their drivers as independent contractors under the state’s new labor law.

Attorney General Xavier Becerra and the city attorneys of Los Angeles, San Diego and San Francisco announced the lawsuit Tuesday. The labor law, known as AB5 and considered the nation’s strictest test, took effect Jan. 1 and makes it harder for companies to classify workers as independent contractors instead of employees who are entitled to minimum wage and benefits such as workers compensation.

California represents Uber and Lyft’s largest source of revenue. The companies, as well as Doordash, are funding a ballot initiative campaign to exclude their drivers from the law while giving new benefits such as health care coverage. The initiative is likely to qualify for the November ballot.

We dive into the suit and California’s saga with ride hailing companies. Plus, if you’re a driver, what do you think of Becerra’s claim? Would you prefer to be treated as an employee? And if you’ve been driving for a while, has the pandemic changed your outlook on Uber and Lyft’s treatment of its drivers? Call us at 866-893-5722. 

With files from the Associated Press.

Guests:

Josh Eidelson, labor reporter for Bloomberg News; based in the Bay Area; tweets @josheidelson

Mike Feuer, City Attorney of Los Angeles

This content is from Southern California Public Radio. View the original story at SCPR.org.

AB 2293 bans drivers from using their personal policies and mandates that drivers have to be covered from the moment they turn on their app and look for customers.; Credit: Photo by Daniel X. O'Neil via Flickr Creative Commons

Amid all the talk about cutting-edge technology, much of Uber and Lyft’s success actually owes to that fact the ride-sharing companies have been able to exploit a basic loophole: The companies foist the cost of insurance on their drivers, but the drivers' insurance companies don’t know they are underwriting cars for hire, and even if drivers wanted to be honest and get a policy that would cover ride-sharing, they couldn’t, because no such policy exists.

AB-2293, introduced by Assemblywoman Susan Bonilla (D-Concord) and signed into law Wednesday by Governor Jerry Brown, tries to close the loophole by paving the way for insurance companies to offer hybrid personal/commercial policies by next summer.

Uber once derided the bill as a backroom deal between insurance companies and trial lawyers.

"The bill does nothing to enhance safety, yet compromises the transportation choices and entrepreneurial opportunities Uber offers Californians," the company wrote in a June blog post that encouraged customers to contact their representatives opposing the bill.

However, the company backed down and supported the legislation when Bonilla insurance requirements were lowered.

AB 2293 also specifically bans drivers from using their personal policies and mandates drivers have to be covered from the moment they turn on their app and look for customers, which is a response to the tragic accident on New Year's Eve in San Francisco when an UberX driver hit and killed a six year old child.

Uber argued that because the driver was waiting for a fare he wasn't working for the company at the time, so he wasn't covered by the company's insurance.

The Fort Lauderdale personal injury law firm launches an interactive guide which illustrates how the price of an Uber or Lyft beats the price of a DUI in every state.

New features in youth mental wellness app help students connect and share resources to confront the stresses of the pandemic and ensuing social isolation

Lyft is laying off 17% of its staff, the company announced Wednesday, after the coronavirus crisis wrought havoc on the ride-hailing business and cut substantially into its revenue. The layoffs will amount to nearly 1,000 jobs. In an email to the company’s thousands of employees, chief executive Logan Green announced the “difficult news,” including the […]

American ridesharing company Lyft, Inc. is set to roll-out a new health safety program that will ensure that riders and drivers are protected amid the ongoing coronavirus (COVID-19) outbreak. The new health and safety standards for ridesharing will require personal health certification for drivers and riders, face masks for drivers and riders as well as new health safety education.

Shares of Lyft Inc. (LYFT) jumped 17% on extended session Wednesday after the ride-hailing company's first-quarter revenues trumped Wall Street estimates despite negative effects of COVID-19 pandemic, as active riders and revenues per riders increased.

Grinding out a living behind the wheel

Transportation options for wheelchair users, especially those riders who use a fixed-frame wheelchair, have grown but are still limited.

Lyft will pitch investors on its fast growth in the United States as it seeks to beat out Uber to become the first publicly listed ride-hailing company, according to people familiar with the matter.

Up until now mask-wearing had only been an unenforced suggestion by the company.

Lyft की नई पॉलिसी के मुताबिक जो लोग नए नियमों का पालन नहीं करेंगे, उन्हें लिफ्ट इस्तेमाल करने की अनुमति नहीं मिलेगी, हालांकि इस मामले में कंपनी अपने पैसेंजर और ड्राइवर पर भरोसा कर रही है,

The state accuses the ride-hailing apps of flouting a labor law by classifying drivers as independent contractors instead of employees.

In our tests, Lyft savings ranged from $3 to as much as $8 depending upon how long the ride was.

Lyft users must self-certify that they are following CDC guidelines related to COVID-19.

Uber and Lyft bring plenty of drawbacks to cities, but solutions aren't easy to find.

Virginia Sen. Mark Warner called on companies including Uber, Postmates to ease financial burdens felt by gig workers because of the novel coronavirus.

People who make their living through on-demand platforms face the possibility of a recession aggravated by a drop in demand caused by coronavirus fears.

Thousands of California drivers have filed wage claims against Uber and Lyft since February, hoping to pressure the state of California into enforcing a law preventing worker misclassification.

California's suit against Uber and Lyft says the companies have illegally treated drivers as independent contractors, depriving them of benefits.

The emergence of ride-hailing companies like Uber and Lyft seems to pose a direct challenge to the nation’s overburdened and underfunded transit agencies, potentially siphoning off patrons most able to pay full fare. Yet, amid competition, there exists a real opportunity for collaboration in providing mobility to the agencies’ neediest customers. American public transit needs…

The rollout starts in Seattle, then more broadly.

Big Auto is increasingly coming up against Big Tech.

They'll also be investing in alternative powertrains and other ways to directly reduce emissions.

Cars, rides, everything will be offset. But that's just one piece of the puzzle.

Check out the companies making headlines in midday trading.

Angelo Zino of Equity Research tells CNBC's Squawk Box Asia that Uber and Lyft will not likely see significant recovery until a vaccine is found amid the uncertainty of the coronavirus pandemic.

Lyft reports its first-quarter results on Wednesday after the bell.

CNBC's Deirdre Bosa reports quarterly earnings from Lyft.

Brent Thill, managing senior analyst at Jeffries and Rohit Kulkarni, analyst at MKM Capital, join "Closing Bell" to discuss markets.

Loup Ventures Gene Munster on Lyft's earnings. With CNBC's Melissa Lee and the Fast Money traders, Guy Adami, Tim Seymour, Pete Najarian and Steve Grasso.

Lay-offs of 3,700 in latest round as lossmaking operators face ‘formidable’ challenges

Mayor Bill de Blasio calls legal action ‘unconscionable’

Less than 24 hours after it was reported that Uber was considering layoffs of 20% of staff, its big rival Lyft is announcing its own cuts. Today the company said it would be reducing employee count by 17%, working out to 982 employees, and furloughing an additional 288, due to the effects of the COVID-19 pandemic […]

Fresh off of a large round of layoffs, Lyft reported its Q1 results this afternoon. The ride-hailing company disclosed that it generated revenue of $955.7 million in the first three months of 2020, up 23% from its year-ago Q1 revenue result of $776 million. The company’s net loss of $398.1 million was also an improvement […]

Greetings all, and welcome to Shifting Gears, the weekly transportation newsletter from Business Insider. Uber and Lyft reported Q1 earnings this week, with mixed results on both fronts. Lyft managed to stave off some of the fallout from the coronavirus pandemic, Graham Rapier reported. The company topped Wall Street expectations on revenue and net losses Wednesday. Uber said it lost $2.9 billion in the first three months of the year, while beating investors' revenue projections by a wide margin.(Don't forget, you can sign up here to get this newsletter straight to your inbox.)On the shipping and logistics front, the chief executive at DHL told Rachel Premack the way you receive your packages could change forever on the other side of this pandemic.General Motors eked out a Q1 profit despite

Anna Gillcrist, 28, tweeted that she felt threatened by a Lyft driver in Kansas City, Missouri on Saturday night. The driver kept asking her questions about her boyfriend and if he was waiting at home.

Uber and Lyft rubbed riders the wrong way with high-priced surge pricing that kicked in when people were rushing to escape during a deadly shooting that erupted in Seattle, leaving a woman dead.

As the number of coronavirus cases in the city rose to 19, Mayor Bill de Blasio said New Yorkers should consider cycling or walking to work to reduce overcrowding on the subway.

Video shows one Lyft driver's efforts to protect himself from coronavirus while driving in Manhattan. He fashioned a protective bubble around himself, with a sheet of plastic taped to the roof of the car.

In a study from researchers at Columbia University Mailman School of Public Health , experts collected data from 370 million rides taken by Uber and Lyft in New York City between 2017 to 2018.

Ford has filed a new patent for technology that uses sensors to determine the smell inside an Uber or Lyft, allowing the user to determine if they want to accept or deny the vehicle for their trip.

Uber and Lyft are aggressively cutting costs as fewer people take rides, UnitedHealth will offer customers $1.5 billion of help and discounts, and Russia’s Vladimir Putin moves to ease lockdowns amid economic challenges. WSJ’s Jason Bellini has the latest on the pandemic. Photo: Josh Edelson / AFP