12/09/2019

Uber, Lyft And DoorDash Pledge $90M To Fight California Gig-Worker Law

Uber Opens a New Window. , Lyft and DoorDash threatened Thursday to spend $90 million to fight a proposed California law that would require the companies to treat their gig workers as employees, rather than contractors.

“We remain focused on reaching a deal, and are confident about bringing this issue to the voters if necessary,” Adrian Durbin, senior director of communications at Lyft, said in a statement.

As employees, workers are entitled to wage protections and benefits. The ride-sharing companies, however, contend that doing so would upend their business model, which is designed around driver flexibility.

If the ride-share companies are unable to reach a deal with California Gov. Gavin Newsom, unions Opens a New Window.  and lawmakers to change the rights of their drivers, they plan to spend the $90 million on a ballot measure. However, the California Labor Federation, which sponsored the law, vowed to fight any countering ballot measure.

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