Rideshare Giants Slam Brakes on Giving Contract Drivers Employee Benefits

Gig-economy giants Uber and Lyft pledged to spend at least $90 million to launch a ballot proposition to fight rideshare contract drivers asking for benefits.

Upset about losing a bigger share of their fares, rideshare drivers took to the streets of San Francisco and called on state lawmakers to support AB-5 - which makes it harder to classify certain workers as independent contractors - a legislation that passed the house in May.

To combat AB-5, rideshare companies are willing to spend at least $90 million to launch proposition revise AB-5 or Kill Assembly Bill 5 if it’s signed into law.

On Friday, AB-5 goes to the senate committee in Sacramento and if it's passed and signed by Gov. Gavin Newsom, the law would give rideshare drivers the benefits they’re fighting. Those benefits include worker compensation, unemployment and others.

However, some rideshare drivers have voiced that they oppose any law which takes away the freedom they enjoy to set their own hours.

Uber and Lyft agreed to pay drivers $21 per hour when they have riders or on their way to pick up one, but labor leaders say it doesn’t go far enough.

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