California lawmakers are weighing a bill that would force corporations like Lyft and Uber to provide better pay and some benefits to gig workers.
Marco della CavaSAN FRANCISCO – Gig economy workers are increasingly ubiquitous, shuttling us to appointments and delivering our food while working for Uber, Lyft, DoorDash and others.
Uber drivers protest next to the Charging Bull statue in New York's financial district, Wednesday, May 8, 2019. The protests arrive just ahead of Uber's initial public stock offering, which is planned for Friday. ORG XMIT: NYML104Assemblywoman Lorena Gonzalez, D-San Diego, author of AB 5, argues that flexibility can be retained while empowering workers.
But by far the biggest focus of AB 5 is on the growing number of folks who now drive for a living. And the nation’s two giant ride-sharing companies, Uber and Lyft, have been among the most vocal opponents of the measure. In fact, fueled by millions in venture capital, Uber and Lyft have for years subsidized the cost of rides to increase market share. Analysts say eventually ride costs for consumers will need to rise to deliver profits.In this photo taken Tuesday July, 9, 2019, rideshare driver Pierre Finley, right, a supporter of a measure to limit when companies can label workers as independent contractors, questions Ruben Houghtailing, about his opposition to the bill, during a rally in Sacramento, Calif.
Uber CEO Dara Khosrowshahi and Lyft co-founders Logan Green and John Zimmer wrote, “We can work with the California Legislature to establish a commitment to driver pay and earnings transparency for the work performed.” Jennifer Barrera, executive vice president at the California Chamber of Commerce, the state’s largest business advocacy group, said companies and lawmakers should be able to work out a compromise.
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