[username90]

Uber works by making drivers responsible over their time. By making Uber responsible for the drivers time they need to change their business model to that of a normal taxi service where they have more control over the drivers, since being responsible for something you don't have control over isn't a position you want to be in. And when they have to work as a normal taxi service then there is no point to Uber, they can't survive as a taxi service so they just have to pull out.

[Arelius]

Could you point me to where and how AB5 would require Uber become responsible for their drivers time? It seems to not be the case to me.

[username90]

It forces uber to employ them and pay them minimum wage and minimum benefits for their time. When you do that you start caring about how much money they make during the hours they work, meaning that Uber is now responsible to ensure their hours are spent productively instead of the worker deciding that himself. At this point there is no difference between Uber and a traditional Taxi company, since that is how Taxis operators. Uber can't survive as a traditional Taxi company since the laws and regulations around Taxis and employments are so different all over the world and they don't have the inhouse expertise to compete with local Taxi companies under those circumstances.

So the end result of AB5 is that Uber and Lift will exit California or become traditional taxi companies there. Either way California taxi state will go back to where it was before Uber and Lyft entered the market.