Uber and Lyft suffer a setback

It's extremely rare that I cheer for a judge to overturn an election result, but this is the exception that proves the rule.

A California state judge struck down a voter-approved ballot measure bankrolled by Uber Technologies Inc., Lyft Inc., DoorDash Inc. and Instacart Inc. that declared drivers for the companies were independent contractors.

Proposition 22, which passed in a statewide vote in November, exempts the so-called gig economy businesses from a state labor law requiring more companies to hire workers as employees and provide them benefits.

The judge found that Proposition 22’s provisions tying the legislature’s hands regarding which workers are covered by worker’s compensation law, and regarding collective bargaining in future gig work, violate the state’s constitution.

Uber and Lyft literally bought themselves a law, while making vague promises to their drivers.
Uber then immediately reneged on those promises.

Uber’s new options seemed to make that flexibility a reality. The company gives drivers more freedom to set their rates and gains greater visibility into the travel offered before deciding whether to accept the trip offered.

In the November elections, Proposal 22 was passed by an overwhelming margin. Since then, some drivers say Uber has removed flexible options and reduced driver income on many trips.

Uber is evil.

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dystopian's picture

Uber uber sucks. Like seemingly most entities in the 'gig ecosystem'. They have lost a bazillion dollars while undercutting (via subsidizing with other peoples investment money) cabs and public transportation with the hope of putting them out and leaving people with no choice. Their first pitch was that they would lessen traffic, studies show they made it worse. Nothing they say should be trusted, they are evil. The passage of Prop 22 is another nail in what won't get finished soon enough, their coffin. They ignored all vehicle for hire laws at city, county, and state levels, to do what they do, move fast a break things, ahead of the law.

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We cannot solve our problems with the same thinking we used when we created them.
Look deep into nature, and then you will understand everything better.
both - Albert Einstein

Granma's picture

It stuns me how big corporations manage to get things like prop 22 passed. It makes me wonder if the people voting on these things even read what a ballot measure says or if they just vote according to some ad they have seen.

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Raggedy Ann's picture

@Granma
are word of mouth votes. If your spouse/friend/parent/child, etc. says vote this way or that, most people tend to do that. They don't read it and if they do, most of the time it's written to misunderstand you.

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"The “jumpers” reminded us that one day we will all face only one choice and that is how we will die, not how we will live." Chris Hedges on 9/11