California makes bold moves to tackle Big Tech with Uber and Lyft showdown

As California becomes one of the first states to take on Big Tech in the ongoing battle over the employment status of Uber and Lyft drivers, the scofflaw ride-hailing companies are now working their political contacts to avoid complying with a law that has been on the books for almost a year.

The two companies, but Uber even more so, have taken an act-first-and-seek-forgiveness-later approach when it comes to complying with international and local regulations. Now, both are using all the political might that they have gathered up over the past years to buy more time in this battle, in the hopes that a ballot measure in the upcoming November election, known as Proposition 22, will overturn AB-5.

The companies are spending millions of dollars fighting a law that will make their operating costs rise if they are forced to pay benefits to their drivers.

They also played the pandemic card, saying that many of those drivers are helping homebound seniors and transporting patients seeking medical care.

The vast majority of drivers want to stay independent workers and are looking for solutions that protect their independence while also providing additional benefit, said Kevin Faulconer, mayor of San Diego, and Sam Licardo, mayor of San Jose, echoing the party line of the companies.

So while the state ushered in a new law that offers more protections to workers, the companies involved have been doing everything possible to make their part of the gig as low-cost and as high-profit as possible. Instead of preparing for a major change, and making changes in their operations to accommodate the new law, they have continued to relentlessly fight it.

4, confirming that it has developed implementation plans under which, if this court affirms the preliminary injunction and Proposition 22 on the November 2020 ballot fails to pass.

Previously, she spent over a decade at Reuters, covering a range of beats, from spot news and Wall Street to biotech and technology.

Original article
Author: T. Poletti

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