California

UBER AND LYFT MAKE THE MOST EXPENSIVE BALLOT IN CALIFORNIA

THE HIGH COST THAT EXCEEDS CALIFORNIA LEVEL

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As Uber and Lyft continue to battle with regulators over the employment status of drivers—they're going directly to California voters to keep front-line workers classified as independent contractors.

In an article from Quartz titled: UBER AND LYFT BALLOT TO BE THE MOST EXPENSIVE IN CALIFORNIA by Michelle Cheng.

Gig companies Uber, Lyft, DoorDash, and Instacart have together spent $170 million to back Proposition 22.

A “yes” on Prop 22 would preserve drivers’ independent status—while making them eligible for limited healthcare subsidies and accident insurance—as well as some modified benefits.

If Uber and Lyft were to reclassify drivers as employees, it could raise labor costs for them by 20% to 30%, according to various estimates.

Uber has said the price of rides would go up, and that the shift in employment classification could reduce its fleet of drivers.

So, the “RUB” IS—Keeping drivers classified as independent contractors allow ride-hailing and delivery companies to avoid paying benefits that are guaranteed to employees.