Uber, Lyft, and other app-based ride-hailing and delivery services spent US$200 million (approximately 15 billion rupees) as a successful bet to circumvent the interests of California lawmakers and courts by making drivers Avoid becoming an employee for benefits and benefits to maintain its business model. Job security.

The so-called gig economy bigwigs raised the most expensive votes in state history. It was decided on Tuesday that 58% of more than 11 million voters chose to classify drivers as independent contractors to set their own working hours.

After a huge victory, the shares of the two companies rose between 11% and 13% before the market opened on Wednesday.

The result was the failure of the union, which promoted state laws directly against Uber and Lyft, requiring them to provide drivers with protections such as minimum wages, overtime, medical insurance, and expense reimbursement.

Supporters of Proposal 22 stated that the results show that voters want to retain the flexibility of the current system. Opponents say these companies have bought their own laws and vowed to continue fighting for the rights of drivers.

Uber and in San Francisco threatened to lose California. They gained extra support in the battle of DoorDash, Instacart and Postmates, and if they fail, all of them may go bankrupt.

Last year, the worker-friendly Democrats in the legislature passed the landmark AB5 to expand a 2018 California Supreme Court ruling that restricted companies from classifying certain workers as independent contractors.

The two companies seek exemptions to fight against voters through campaigns that include TV commercials, emails, and messages targeting customers and drivers displayed in their apps.

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Opponents say that these companies use drivers to maintain high profits, while voting measures will deprive workers of their rights, such as overtime pay and workers’ compensation.

Proponents say this measure will enable drivers to maintain the freedom of their choice of working hours and will provide other benefits.

Bill French, 62, a former high school baseball coach, voted in Huntington Beach for this measure.

“I don’t need them to control me and tell me when to go to work and not to go to work,” French said.

The game cost more than 225 million US dollars (approximately 17 billion rupees), and the union invested about 2 billion US dollars (approximately 1.5 billion rupees).

Art Pulaski of the California Federation of Labor said in a statement: “These multi-billion dollar companies have spent a considerable amount of money to mislead the public and do not relieve them of their obligation to pay drivers for living expenses.” It is the beginning of the struggle to ensure that gig workers receive fair wages, sick pay and nursing care when they are injured at work.”

David McCuan, a political science professor at Sonoma State University, said that this expenditure did not account for the $30 (approximately Rs 2,200) Uber ticket and other services to Customers promoting their brand’s coupons are likely to invest future votes on steroids.

McCann said: “What Proposal 22 does is that it sets off a wave of all voting.” “The it set will be blown over the next time. … This turns the parallel road of direct democracy into a playground. , It will be measured in billions of dollars in a few (election) cycles.”

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The measure was supported almost statewide, except for the San Francisco Bay Area and some coastal counties in the north.

Although drivers are still independent contractors and can be exempt from tasks such as sick leave and expense reimbursement, they will receive some “alternative benefits”, including a guaranteed minimum wage and health insurance subsidies for an average of 25 hours of work per week.

Uber CEO Dara Khosrowshahi sent a letter to the drivers on Tuesday evening, thanking them for their support and their commitment to enroll in accident insurance and other benefits in the coming weeks.

The wishes of voters may undermine a recent court of appeal ruling that is consistent with the State Attorney General Xavier Becerra (Xavier Becerra), who sued the company for violating AB5 regulations by misclassifying drivers as contractors Quotient.


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