Ride-hail drivers and labor advocates have held several protests against gig economy companies over the years.
Dara Kerr/CNETThe possibility of gig workers being classified as employees in California is now pretty much over. Uber, Lyft and other gig economy companies have declared victory after pouring more than $205 million -- outspending their opponents 10 to 1 -- to get their Proposition 22 ballot measure passed in the state. But even though this battle may be over, both sides of the campaign say the war is not yet won.
"We always knew that the fight for gig workers' rights was going to be a long one," said Cherri Murphy, former Lyft driver and organizer with driver advocacy group Gig Workers Rising. "They may have won this round, but we're in this for the long haul."
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The fight over gig worker classification goes back nearly a decade, to when several lawsuits were filed against Uber and Lyft on behalf of workers demanding more protections. The companies have consistently settled those suits by offering some concessions to workers, but not employee reclassification.
Proposition 22 wasn't much different. The gig economy companies framed their ballot measure as something that would bring workers more protections while also maintaining their "flexibility" as independent contractors. The proposition creates an alternative to the employment model, in which drivers remain contractors and get a few more benefits, like an expense reimbursement and a health care subsidy.
"California voters agreed that instead of eliminating independent work, we should make it better," an Uber spokesman said in a statement Wednesday.
Lyft and DoorDash signaled that they're prepared to bring the alternative employment model to other states.
"Lyft stands ready to work with all interested parties, including drivers, labor unions and policymakers, to build a stronger safety net for gig workers in the US," Anthony Foxx, Lyft's chief policy officer, said in a statement Wednesday.
DoorDash CEO Tony Xu said, "Now we're looking ahead and across the country, ready to champion new benefits structures that are portable, proportional and flexible."
Expected to be a closer race, Proposition 22 won with an overwhelming 58% of the vote in California. Exit polls showed that 40% of people who voted yes on the ballot measure believed they were supporting workers in getting a living wage.
Proposition 22 was authored by Uber, Lyft, DoorDash, Instacart and Postmates with an explicit aim of having the companies exempted from California law AB5, which required them to classify their workers as employees. Such reclassification is something the companies have said could decimate their businesses with added payroll and benefits costs.
With their multimillion-dollar campaign war chest, the companies blanketed the state in ads, mailers, emails and text messages . They hired roughly two dozen political consultants known for using no-holds-barred tactics to win on Election Day. Those tactics included digging up dirt on labor activists , paying drivers to appear in tear-at-your-heartstrings advertisements and hiring firms to create studies with favorable data for the campaign .
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Proposition 22's win appeared to please investors, as stocks for both Uber and Lyft rallied by at least 15% and 18%, respectively, on Wednesday morning.
But for the gig workers and labor activists who opposed the ballot measure, the results of the campaign were chilling.
"We are deeply concerned about the result of Prop 22, which threatens to create a class of workers scraping to get by," Lena Simet, senior poverty and inequality researcher at Human Rights Watch, said in a statement. "We'll continue to closely monitor and document the impact of Prop 22 and the policies and practices of gig companies on workers' rights and livelihoods."
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