California voters sided with the huge app-based delivery services in voting yes on Proposition 22.
That means drivers for companies such as Uber and Lyft will be considered independent contractors, not employees.
About a quarter billion dollars was spent on this Proposition, with $230 million coming from Uber, Lyft and DoorDash.
State lawmakers passed a bill requiring the drivers for rideshare and delivery companies to be considered employees, meaning they would have to pay benefits, overtime, minimum wage, etc. But voters sided with the rideshare companies, and a spokesperson for Yes On 22, Geoff Vetter, explained why.
“Voters in California listened to drivers saying what they wanted,” said Vetter. “We’ve said multiple times that more than 70% of drivers wanted to remain independent contractors because it gives them a cut and the flexibility to choose when they want to work, where, and how long they want to work.”
Vetter also said that during the pandemic, the need for DoorDash, Postmates and Instacart food delivery is absolutely essential.
A No On 22 spokesperson said this is just an example what $230 million can buy. Labor unions spent $20 million trying, unsuccessfully, to defeat the prop.