Gig economy companies including Uber and Lyft are expected to prevail in the battle over Proposition 22, a California ballot measure that could have required the companies to classify their drivers as employees.
Uber, Lyft, DoorDash, Instacart and Postmates spent more than $200 million campaigning for a "yes" on Prop 22, warning they could be forced to leave California or significantly raise prices if they lost. Prop 22 was the most expensive ballot initiative in California history.
"We're disappointed in tonight's outcome, especially because this campaign's success is based on lies and fear-mongering," said Gig Workers Collective, a group that pushed against Prop 22. "Companies shouldn't be able to buy elections. But we're still dedicated to our cause and ready to continue our fight."
The ballot measure will make drivers independent contractors under California law, superseding the new AB 5 law, which was intended to give drivers the full range of benefits afforded to employees.