California approves measure to keep Uber drivers independent contractors

Californian voters passed a proposition that will allow Uber and Lyft to continue treating their drivers as independent contractors rather than employees.

Taryn Luna from the Los Angeles Times reported:

Californians sided with the $200-million Proposition 22 campaign led by Uber and Lyft, voting to pass the measure and grant ride-hail and delivery companies an exemption from California employment law to continue treating workers as independent contractors.

The fight was one of the most closely watched ballot measure contests in the country and the costliest in state history.

Ellen Huet from Bloomberg wrote:

This fight’s importance was reflected in the ballot initiative’s financial contributions. DoorDash, Instacart Inc., Lyft, Postmates Inc. and Uber together spent $200 million on the campaign, making it the costliest ballot measure in state history. The “No on 22” camp, which was mostly funded by labor unions, only ever raised about a 10th as much.

Andrew J. Hawkins from The Verge reported:

Uber and Lyft threatened to leave California — or drastically cut back service — if they were forced to classify drivers as employees. Uber’s CEO, Dara Khosrowshahi, predicted a sharp increase in fare prices and fewer drivers on the platform if Prop 22 failed. If Uber had to hire its drivers, he said, it would only have room for 280,000 workers instead of the 1.4 million who currently use the app. The company declared victory tonight, thanking the Prop 22 supporters.