Proposition 22 Rideshare Measure Passes In California

With more than two-thirds of the state’s precincts reporting, more than 6.3 million votes in favor to 4.5 million opposed.

This campaign has been one of the most expensive ballot measures in California history, with more than $204 million contributed to lobbying and advertising efforts, most of it by the rideshare companies who threatened to leave the state if the law wasn’t changed. The yes side has raised about $189 million in contributions.

Rideshare companies took measures in response to the California State Legislature passing a law that classified app-based drivers as employees.

AB5 forced companies like Uber, Lyft, and Doordash to reclassify how they employ and pay contract workers. Since the coronavirus pandemic rideshare companies have seen ridership plummet, they threatened to shut down until November but stopped short.

During the campaign, the state appeals court ruled against the rideshare companies, reaffirming that they must reclassify their employees. Uber and Lyft say their drivers prefer independence by a four-to-one margin and an overwhelming majority favor the initiative.

If Proposition 22 passes, drivers would remain as independent contractors but it would guarantee an hourly wage and some benefits, healthcare subsidies, accident insurance, and driver background checks.

According to the No on the 22 campaign says that drivers are being denied real protections and benefits.
The No campaign has raised about $5 million and the Yes campaign, with major contributions from Uber, Lyft, and Doordash, raised more than $180 million, putting Proposition 22 in the top rung of fundraising.