Skip to comments.The End of the Road for Uber and Lyft in California Unless Prop 22 Passes
Posted on 10/23/2020 10:57:08 AM PDT by SeekAndFind
The decision many have been waiting for has arrived: on Thursday, the California Court of Appeals ruled that Uber Technologies Inc. and Lyft Inc. must now classify their drivers in California as employees. This was the final mile in the courts. In 11 days, California voters get to decide their fate.
The ballot measure Proposition 22 will be the last stand for app-based rideshare and delivery drivers who wish to remain independent. If it passes, the prop will codify app-based drivers ability to choose to work as independent contractors with control over where, when, how long and for whom they work.
When the California Legislature voted to pass the contentious AB5 bill and Governor Gavin Newsom signed it into law, it made it illegal for app-based drivers to choose independent work. Uber and Lyft immediately filed an injunction to stay the effects of the law on its independent contractors and the availability of rideshare and delivery services.
Uber, Lyft, DoorDash, and a few other smaller companies worked to ensure Prop 22 made it on the November ballot, and have spent over $190 million in education and advertising. All this while fighting in the courts in order to keep from re-classifying its independent contractors as employees.
In August, Uber and Lyft were denied a stay, requiring them to immediately comply with the law. The rideshare companies threatened to exit California, and through the intervention of Governor Newsom and certain lawmakers, the companies received a temporary stay until October 22.
Thursdays ruling gives Uber and Lyft 30 days to comply. If Prop 22 passes, it will allow rideshare and delivery drivers to remain independent contractors, carving out another exemption from a law that is already shot full of holes with exceptions. While the prop’s passage does not mitigate the effects of AB5 for other freelancers and independent contractors, Yes on Prop 22 will help to erode the flawed AB5. For this reason, non-drivers like Maressa Brown are fully supportive of Yes on Prop 22.
This fall, voters are being asked if they support Californians' choice to be self-employed. Because we weren't consulted the first time around. #YesOnProp22 https://t.co/EHI9SjRFMb
— Maressa Brown (@MaressaSylvie) October 15, 2020
Angel investor Ron Conway is also in full support of the measure.
App-based rideshare & delivery drivers always come through. Now, CA we need to come through for them. A huge majority of app-based drivers are asking us to VOTE #YESonProp22. It saves jobs, protects their independence & provides drivers new benefits! https://t.co/nLqYcmg2Kz
— Ron Conway (@RonConway) October 22, 2020
An independent study details what is on the line if Prop 22 fails:
- an increased cost for consumers of rideshare services ranging from 25.9% to 100% in some markets meaning that a typical $15 ride across town would cost between $19 and $30;
- an increased cost for food / grocery delivery services ranging from 35.2% to 100% in some markets meaning that a typical delivery charge of $12 would cost between $16 and $24;
- a reduction of the customer base served to only those persons residing in the most densely populated areas of the state meaning little or no service to most Californians living in rural or suburban areas of the state;
- a reduction of service days and times in these urban areas meaning service availability during peak usage hours only (mostly commute times and weekend entertainment/nightlife periods for rideshare and standard dining times for food delivery); and
- an increase in wait times and a decrease in reliability for customers meaning an average wait time for rideshare of 7 minutes may double to 14 minutes, and average wait time for food/grocery delivery of 40 minutes may double to 1 hour and 20 minutes, or more, except in the most densely populated service areas.
These negative consumer impacts will, of course, have a significant negative impact on drivers. Our analysis indicates that drivers average hourly compensation will be reduced from $19.55 per hour today to approximately $14.67 per hour under an employment model.
Cant stress enough how critical it is for CA voters to understand the significance of how lives will change without Prop 22. So many passengers rely on this service on a daily basis and hundreds of thousands of drivers gigs are at risk. #YESonProp22 @VoteYesOn22
— MomLyft YES ON 22 (@MomLyft) October 22, 2020
Ciaran Blumenfeld is thankful for the safe transportation option it allows her children. Mothers Against Drunk Driving (MADD) has endorsed Prop 22 for that same reason.
As a mom I [email protected] glad that my kids have options to get home safe, and to get food delivered when the post party munchies happen. This saves lives! #yesonProp22 https://t.co/ydeAjcmogi
— Ciaran Blumenfeld (@CiaranBlu) October 22, 2020
Dr. Tecoy Porter warns of the harm to minority communities should Prop 22 fail. Millions of app-based drivers are Black and Hispanic, and in the midst of this pandemic, cutting off this source of income would only drive them further into poverty.
I'm voting #YesOnProp22 pic.twitter.com/B9Cm4v6asU
— Dr Tecoy Porter Sr. (@DrTecoyPorterSr) October 22, 2020
The success of this proposition goes beyond convenience to issues of safety, autonomy, and freedom for rideshare and app-based drivers. Much is at stake. Vote Yes on Prop. 22.
The wife and I voted for Prop 22. The only proposition we voted for. All the others we voted NO on.
The death rattle of the private-sector unions can still hurt in the right places - commie California is one of those places.
As the article noted, Uber and Lyft provide a great public service. Instead of drinking and driving, many young people will drink, then call Uber or Lyft.
So naturally CAs liberal elite tries to interfere with that. The Nanny State always thinks it knows better. And it is always wrong.
“rideshare and delivery drivers who wish to remain independent”
Comrades! Follow the directives of your maximum leader, Newsome! Independence from the collective is bad! No to critical thinking! We will think for you! Love Big Brother!
Now, go back to hating orangeman.
No sympathy for these Gig companies. They got into bed with Democrats and the Left and now they caught a STD.
Good gawd...it was not that long ago $190 MM was the amount a POTUS campaign would spend.
The crazy thing is, libs use it the most. A lot of young libs never learned to drive, they dont own cars and use Uber for everything. Then they vote for the idiots who drafted this law.
“No sympathy for these Gig companies”
That’s my attitude.
Uber sent out a demandogram with their latest app update to swear fealty to BLM or else no service, and please delete the app.
I did so within seconds, and plan on using Yellow Cab for the very infrequent times that I need a ride.
They wanna break the Unions for cabbies? Talk to their buddy Gruesome Newsom.
I thought this affected every type of contract work not protected under interstate commerce oversight (that’s commercial trucking)
IT specialists, caterers, etc.
all I ever see is stories about Lyft and Uber.
Again, besides killing the app-based economy, this will kill the gig-based economy.
Very little sympathy for Uber and Lyft. As employees or contractors or whatever they wanna call it, they should be paying appropriate commercial insurance, etc.
I think it’s going to win big as there are many, many “independent contractors” in California that will benefit when Prop 22 passes for Lyft and Uber.
If I were a Californian, I wouldn't know whether to vote for Prop 22 to chip away at the stupid law, or vote against it to make the whole law awful when enforced on everyone rather than relieving a couple pressure points.
cab companies last I looked had to carry 1Million dollars in liability ins per cab. Dispatch logs can be used to verify income, tips excepted. Drivers are routinely randomly drug tested and FBI-background checked processed by the local PD. Their meters and vehicles are inspected once a year for accuracy/safety. How does that compare to uber/lyft?
I’ve also seen the complaint that the uber/lyft drivers want paid sick leave, vacation and medical. Although most work less than 20 hours a week and work for more than one vendor. I don’t see how that works out logistically for the companies. If a driver works 6 hours a week, how much sick leave or vacation time would they actually accrue, compared to say, office workers? Who pays the medical? If companies are supposed to provide that, and the drivers drive for 2 or 3 companies, how is that shared out?
I see the emotional arguments but not much red meat. So for me, I haven’t decided yes or no yet.
There are no cab unions in California.
Just a bunch of independent contractor cabbies keeping tons of regulations that uber and lyft ignore.
We voted NO because Uber and Lyft are Both 99% Proud Democrats, the drivers are 90% proud democrats, they VOTED for this, they can Suck it Up!!
California Uber Alles!
Cab companies Are restricted to 2,000 cabs in San Francisco. Cab companies must provide workmans comp. Cab drivers can negotiate lower fares. Cabs are subjected to surprise third party inspections. Cabs dont have to drive an assigned route. Cabbies who get complaints get a hearing not a summary license yank.
Cabbies have a much harder time pretending their illegal brother Mohammed is them driving. Or their sex offender friend or violent felon brother or unlicensed cousin. This is because of the required very clear signage and markings on cabs, the requirement that we check in for waybills when we drive in person, so if I hand off my cab to Abdul the scores of cabbies who know cab #300 can easily see hey that is not Persevero driving in there. Police check you waybills at traffic stops and of course dispatchers know if thats not you.
Cabs are required to pick up disabled and animals. Cabs must have a certain number of wheelchair accessible vehicles. Cabs in sf must possess a $250,000 medallion.
I am an independent contractor and support independent contracting. But this is about way more than that.
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