Ride-sharing apps such as Uber and Lyft are expected to prevail as California counts votes on Proposition 22, a ballot measure supporting the gig economy that exempts drivers for app-based transportation and delivery companies from being classed as employees.
CNBC reports that according to projections from NBC News, California voters have voted in favor of Prop 22, which exempts companies such as Uber and Lyft from a state labor law that would require their drivers to be classified as employees instead of independent contractors.
The proposition would allow drivers for the app-based companies to be classified as independent contractors which would not entitle them to benefits such as minimum earnings and vehicle insurance. Multiple app-based gig companies including Uber, Lyft, DoorDash, Instacart, and Postmates have thrown their support behind Prop 22.
The companies managed to raise almost $203 million to back the measure while opponents raised less than $20 million according to reports from Ballotpedia. In a blog post earlier this year, Uber estimated that it would have to raise rider prices by 25 percent to 111 percent in parts of California to cover costs if their workers were reclassified.
Bay Area rideshare driver Jimmy Strano said in a statement shared by Yes on 22, a committee funded by Uber, Lyft and DoorDash: “In a historic election, California drivers sent a clear message that we want to be independent, and that what’s best for us is a new approach that preserves our independence while providing new benefits.”
Read more at CNBC here.