Proposition 22 Was The Large Vote This Week For Uber And Lyft

All eyes are on the presidential election, however the massive vote for Uber and Lyft this week was on Proposition 22 in California.

Proposition 22 exempts gig corporations from AB5, a labour regulation handed in 2019 which extended worker protections to gig workers like Uber and Lyft drivers.

Voters in California passed the law with round 58% of ballots in favour after intense campaign efforts from not just the ridesharing giants but in addition companies like Instacart and DoorDash which spent upwards of $200 million on the efforts.

Uber and Lyft threatened to halt their service in California if the law was not handed-a pretty large incentive for voters to assist Proposition 22.

There are currently an estimated 325,000 Lyft drivers and 200,000 Uber drivers in California. If the companies have been to cease their respective providers, a lot of individuals could be out of work throughout a time when unemployment figures are already devastatingly high.

“If the voters don’t say Yes on Proposition 22, rideshare drivers will probably be prevented from persevering with to work as impartial contractors, placing hundreds of hundreds of Californians out of labor and sure shutting down ridesharing throughout much of the state,” an Uber spokesperson warned last month.

A related hardball tactic was utilized by Uber and Lyft in Austin, Texas after the city voted that the companies should fingerprint their drivers for background checks. The businesses ceased their operations two days later but returned around a 12 months later after the law was reversed.

Many drivers and labour groups opposed Proposition 22, together with Gig Workers Rising which referred to as the outcome “a loss for our democracy that could open the door to different makes an attempt by corps to jot down their very own laws”.

But it surely appears this will not be the end of the saga.

“We have been outspent 20:1. We were outgunned. But we haven’t gotten this far as a result of it was easy,” said Nicole Moore, a driver and organiser with Rideshare Drivers United. “We are fighters.. We punch above our weight. And we punch above our weight. We stand strong once we stand collectively. We will fight - in the courts, in Sacramento and within the streets.”

Below Proposition 22, Uber and Lyft will have to give drivers some benefits-but they won’t have the same protections afforded to common workers.

Uber CEO Dara Khosrowshahi wrote to the company’s drivers: “We’re looking forward to bringing you these new benefits - like healthcare contributions and occupational accident insurance - as soon as doable.”

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