Uber, Lyft and Doordash have contributed a combined $90 million — or $30 million each — to back a ballot initiative that would protect them from having to classify their drivers as employees. Columnist hiltzikm explains:
Big companies don’t normally invest tens of millions of dollars with the expectation of losing.
Uber’s “framework” encompasses what it says would be pay for drivers above the minimum wage “for every hour they have a rider in the car, or are driving to pick one up,” and “compensation for average expenses.” They also propose what they call “access to benefits” such as sick leave and some form of coverage for an injury stemming from an accident while driving.
“We are not arguing for the status quo, nor are we denying that independent work needs to be improved,” Uber said in releasing its framework.Lyft and Uber drivers say they spend as much as 60% of their time in waiting for a driving gig, which is excluded from the framework’s calculation of time spent picking up or driving with a passenger. The distinction might even encourage the companies to add more drivers to their independent fleets, competing with one another for passengers.
In short, Uber, Lyft and Doordash — and any other gig companies that choose to sign on to their campaign — are merely trying to circumvent the employment rights embodied in the Dynamex ruling and AB 5. The best way to improve independent work, which Uber says is its goal, is to guarantee all the rights and benefits that come with employment.
The companies acknowledged in their op-ed that “a change to the employment classification of ride-share drivers would pose a risk to our businesses.” The commitment of $90 million to averting that change is only a hint of how much it really would cost them.
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