Uber, Lyft To Campaign Against California Gig Economy Law

Four Silicon Valley giants that depend upon the gig economy to run their business have teamed up together to launch a statewide campaign against California’s AB 5 law.

What Happened

A union of businesses — including Uber Technologies Inc UBER, Lyft Inc LYFT, DoorDash and Instacart — and independent drivers announced a ballot measure on Tuesday against the law that will require companies to give the gig economy workers similar benefits as full-time employees.

As an alternative, the consortium is proposing a new “Protect App-Based Drivers and Services Act.” It claims the law will secure both minimum earnings guarantee and insurance for the drivers, but at the same time, allow them to have flexible work hours as independent contractors.

"Families across California are struggling to make ends meet, particularly people of color and lower-income individuals,” President of the National Action Network for Sacramento Tecoy Porter said in a statement. "This ballot measure will protect the rights of workers to earn extra income or primary income on their own terms while providing historic new earnings and benefit guarantees. This measure is a good deal for California workers.”

What's Next

According to the Los Angeles Times, this could become “one of the most expensive issue campaigns in California’s history.”

Uber and Lyft are going to provide a total of $60 million for the cause, whereas DoorDash is committing $30 million.

The consortium is aiming the proposal to qualify for the state ballot in November 2020.