Uber and Lyft investing $90m to defeat gig worker protection legislation

Uber and Lyft have threatened to invest a combined $90.0m in an attempt to stop a bill to defend gig worker’ rights known as AB5 that was set to pass in California, with other companies possibly set to join the effort.

If it secured passage, the bill, which was scheduled to be voted on by a key committee of the state Senate on Friday, would force Uber and Lyft to turn their drivers into category W-2 employees and grant them benefits, wage commitments and guarantees.

The New York Times first reported on the two companies' plans on Wednesday, with TechCrunch saying on Friday that other companies might join the two ride-hailing firms in funding a ballot measure to block the new legislation.

Uber reportedly said: "Forcing all drivers to become employees could drastically change the rideshare experience as you've come to know it, and would limit Uber's ability to connect you with the dependable rides you've come to expect."

A spokesperson for Lyft meanwhile told TechCrunch: “We are working on a solution that provides drivers with strong protections that include an earnings guarantee, a system of worker-directed portable benefits, and first-of-its kind industry-wide sectoral bargaining, without jeopardizing the flexibility drivers tell us they value so much,” a Lyft spokesperson told TechCrunch. “We remain focused on reaching a deal, and are confident about bringing this issue to the voters if necessary.”

As an alternative to the bill, Uber said on Wednesday that, together with Lyft, it would offer drivers a minimum base wage of approximately $21 and to finance a fund that would go towards portable benefits fro drivers and to establish sector bargaining.

“Everything that Uber and Lyft are offering is insulting to drivers,” Lauren Casey of Gig Workers Rising told TechCrunch

Gig Workers Rising is one of the organisations responsible for bringing drivers together to support AB-5 in the US and demand the right to unionise.

“This is nothing new. All they’ve done since AB-5 was introduced is spread misinformation and fear. This shows us that Uber and Lyft are worried. Drivers have been organising and fighting hard for AB-5 for months, and, it’s working.”