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

673

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.

Back to the list

Related Information:

World, Business and Lifestyle News