Nuked Uber and Lyft have until August 20th to comply with the order. The companies have said they will need to go dark in the Golden State in order to retool their business.
Uber and Lyft built their respective businesses on the concept of using freelance drivers who are n’t eligible for traditional benefits like health insurance and paid leave.
The companies, along with DoorDash, raised nearly $ 100 million to place a question on the November ballot. They succeeded, and this fall, voters will be asked to permanently classify ride-hailing drivers as independent contractors.
Lyft emailed its customers urging them to vote yes on prop 22. Uber has yet to do the same, but the company has shown a flair for using dramatic tricks to turn its customers into political allies.
New York state is considering legislation similar to ab5 that would force companies to classify drivers as employees. The companies are now considering a wage floor for drivers.
Shutting down operations in California would be a much bigger, much more dramatic, and far riskier move than adding a new widget in its app. It would also be an extremely visceral way to show voters what things could be like if prop 22 fails.
Uber and Lyft drivers have long complained about poor pay, lack of protections, and an inability to unionize. There have been stories about drivers sleeping in their cars because they ca n’t afford to live in the cities where they work.
The ballot measure promises to raise compensation for ride-hailing and delivery drivers by requiring companies to pay them above minimum wage, plus 30 cents per mile. It would also mandate health care coverage for drivers who work at least 15 hours a week, and provide insurance for on-the-job injuries.
In California, the Lyft app literally has proposition 22 literature within the app. Are they allowed to do this without a’paid by’ disclosure?.
California voters are being asked to endorse an unprofitable business model that denies workers overtime pay, reimbursement for expenses, workers’ compensation and paid leave.
California is where Uber and Lyft were founded and raised billions of dollars from investors before eventually going public. Neither company has ever been profitable. Both have set records for the amount of money lost in the run-up to their respective IPOs.
Prop 22 is designed by gig companies to ensure that these corporations are exempted from having to observe basic labor protections for workers for generations to come.
Millions of drivers voluntarily opted into this wage opportunity. Did they ask you to’fix’ a problem?. Or, are you solving a problem for your union donors?.
The ballot measure promises to raise compensation for ride-hailing and delivery drivers by requiring companies to pay them above minimum wage, plus 30 cents per mile. It would also mandate health care coverage for drivers who work at least 15 hours a week, and provide insurance for on-the-job injuries.
Uber’s app now displays prices differently, allows customers to select preferred drivers. The app has also discontinued some benefits associated with its driver rewards program.
Khosrowshahi’s company has over $ 110 million in cash it can spend to sway voters on prop 22. By comparison, pro-ab5 labor groups have only $ 866,000.
A poll found 41 percent of California voters say they will vote yes for proposition 22. A significant 34 percent say they still do n’t know how they’ll vote.
Gig workers rising has been staging protests at Uber and Lyft headquarters in the hopes they can generate some media attention. But they have yet to outline an advertising strategy.
Uber lost over $ 16 billion in the three years running up to its IPO. Since going public, it lost another $ 13 billion. Uber is based entirely in North America, while Uber is global.
