Mayor Jacob Frey “caved to corporate lobbying," the council member who drafted the bill said.
Uber previously claimed employment models would force it to fire 75 percent of its U.S. drivers.
One of Jason Dalton's last passengers alleges he tried and failed to get Uber to deactivate the driver, who said the app made him a "puppet," before the killings.
Lyft was accused of price gouging evacuees before eventually turning off surge pricing.
Uber plans to appeal the ruling on the California ballot initiative, with clones in numerous jurisdictions facing similar scrutiny.
Uber and Lyft have spent years confusing the public about their financial health.
Drivers told Motherboard they're never coming back because of horrific working conditions before and during the pandemic.
Didi Chuxing pushed Uber out of China, and now Uber stands to be a winner with its 12.8 percent stake in the company.
A bill that would have given gig workers limited collective bargaining rights without a minimum wage was pulled on Tuesday
Uber and Lyft won't electrify a fleet they don't own, and so gig companies want the public to foot the bill.
This is another step by the Biden administration towards enforcing labor laws that so-called gig economy companies currently skirt.