Uber and Lyft won the California

Major victory for platform economy: California votes 'yes'

04.Nov.20 1:10 PM
By Shawn Highstraw
Photo Net

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Major players in the so-called platform economy, such as Uber and Lyft, have achieved a major victory in California. Voters voted by a majority in favour of an exemption law whereby these tech companies do not have to treat independent contractors, such as taxi drivers, as employees.

Last year, the US state passed a law requiring companies to hire freelancers as employees as long as they carry out jobs that fall within the normal business activities. Internet companies like Uber and Lyft have a lot of taxi drivers doing freelance rides. Many other digital platforms in the so-called 'gig economy' do the same, such as food delivery or chores platforms.

At the same time as the American presidential elections, California citizens were allowed to vote on a compromise, which became known as proposition 22. This proposal exempts digital platforms from the Workers ' Act. However, the proposal forces the tech companies to pay freelancers minimum rates and a health allowance in proportion to the hours worked. However, it is estimated that Uber and Lyft alone will save USD 100 million a year from other employers ' costs if the exemption is confirmed.

Almost 58% of all voters in California supported the proposal, so it became clear after 80% of all votes had been counted. The result comes after an active lobby from the tech world, which also includes milling companies Throughash and post-mats and Messenger InstaCart. Along with Uber and Lyft, they accounted for $ 200 million in campaign spending. Opponents of proposition 22, mainly trade unions, had only a tenth of that amount for their campaign.

In California last year, it is estimated that at least a million people were self-employed on digital platforms. Victory also has a great symbolic value. Many developers of apps for the platform economy, who stand up for their innovative character, have their nursery in the California Silicon Valley.

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