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After voting, Uber and Lyft drivers will still be considered contractors in California

The decision could save these companies over $100 million a year.

uber and lyft ride-hailing toy cars on table jalopnik study
Image: Unsplash

In the ongoing battle between drivers and gig economy companies like Uber, Lyft, and DoorDash, it looks like a decision has been made regarding Proposition 22. This was put on the November 3 ballot in California and it seems that voters (58% supported the proposition) have made the decision to not make these companies provide benefits to drivers.

According to Bloomberg, stocks for Uber and Lyft jumped 14% overnight, once the news broke. Why, exactly? Well, according to one report, this decision will save these companies northwards of $100 million a year. This is because these gig economy apps will not be required to provide full-blown benefits for drivers.

Bloomberg also reports that this was the most costly ballot in the state’s history. Between Uber, Lyft, DoorDash, Instacart, and Postmates, these companies spent $200 million on the campaign.

It has been noted by outlets like Bloomberg that drivers for these companies will still receive limited benefits, but they will be based on times where they are actually “on-the-clock” and not times when they are waiting for new rides or work. These would include minimum hourly rates and some form of health insurance.

What do you think? Are you on the side of the companies, or do you think they aren’t doing enough? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

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