Fresh from its success on election day, Uber is signaling that it will continue to push laws similar to the California voter-passed Proposition 22 measure that will keep gig workers classified as independent contractors. The ride-hailing company's ambitions for laws that preserve its business model are global.
Uber chief executive Dara Khosrowshahi said on Thursday during an earnings call with analysts that the company "will loudly support laws like Prop 22". He later added that it will be a priority for the company to "work with the governments of the United States and the world to make this a reality."
What might appear to be "arguing aloud" is unclear. Proposal 22 was supported by Uber and Lyft, as well as on-demand delivery companies DoorDash and Postmates. (Uber is acquiring Postmates). The push to push through the electoral measure and nullify a bill passed by the California State Legislature that would have forced companies that use gig workers to classify them as employees was a costly undertaking. Total contributions to Yes on 22 were approximately $ 205 million, making it the most expensive voting measure in California since 1999.
Here is his complete thought:
Finally, on Proposition 22, which we're happy to say passed by a good margin in California.
This important issue has now been resolved in the most populous state in the country. California voters hear what the vast majority of drivers want: new perks and protections with the same flexibility. In the future, California drivers and delivery workers will receive a minimum standard of earnings, health insurance contributions, accident insurance, increased safety protections and more. We strongly believe that this is the right approach, we should add benefits to working together to make it better, not eliminate it entirely in favor of an employment-only system.
That's why, moving forward, you'll see stronger advocacy for new laws like Prop 22, which we believe strike the balance between maintaining the flexibility that drivers value so much, while adding the protections that all workers deserve. Our proposal for a new pragmatic approach is supported by 82% of drivers and 76% of voters. And it's a priority for us to work with the governments of the United States and the world to make this a reality.
For now, Khosrowshahi said the company will focus on complying with Prop 22, which requires an earnings guarantee of at least 120% of the minimum wage at work, 30 cents per mile committed for expenses, a healthcare salary, a ' occupational accident insurance for occupational injuries, protection against discrimination and sexual harassment, and automobile accident and liability insurance. Guarantees of earnings and reimbursement of expenses reflect the time spent by the driver, not the time elapsed between journeys or deliveries.
"We are very focused on running the Prop 22 in relation to our pilots," he said. Khosrowshahi said this could raise rates, but noted that any increase "would not have a significant effect on travel volumes one way or another, based on the kind of sensitivity we've seen in the past."
