Vulture Contracting, That Is
Election season and the news cycle certainly took their toll, but I wanted to follow up on something I’d written about here before. It seems that the money which Uber and Lyft poured into California’s Prop 22 paid off for them, since their proposition passed:
In a major win for gig economy companies, CNN projects California voters have passed a costly and controversial ballot measure to exempt firms like Uber and Lyft from having to classify their gig workers in the state as employees rather than as independent contractors.
Backed by more than $200 million from Uber, Lyft, DoorDash, Instacart and Uber-owned Postmates, Proposition 22, or Prop 22, is the costliest ballot measure in California’s history, according to Ballotpedia, underscoring how important its passage was to the future of their businesses.
This news doesn’t help drivers earn more, so who could it help?
Uber (UBER) and Lyft (LYFT) stocks are both up over 11% percent on the news.
Ah, there we go. Essentially, nearly a quarter of a billion billion dollars was spent to avoid improved conditions for workers in need of better pay and better protections, all in the name of saving companies who don’t actually have profitable businesses.
Contracting Economy Business Venture Capital