Uber, Lyft Won’t Eliminate Legal Fights With New Business Models

The ongoing legal fight in California over the business models used by Uber Technologies Inc. and Lyft Inc. has implications for other industries that rely on independent contractors, and could still mean years of litigation if the ride-sharing companies try shifting to new structures such as franchising.

Uber and Lyft stood down last week on threats to shut down in California, where they get roughly 15% of their business, when an appeals court paused the enforcement of a court order that would force them to convert their drivers to employees from independent contractors. The companies will report to the court ...