Christmas came early for Uber and Lyft
Saved by the ballot... App-based driving companies are majorly relieved after CA voters said "Yes" to Prop 22. That exempts them from CA's AB5 law, which would've forced them to reclassify gig drivers as employees (think: healthcare, PTO, paid sick leave).
Deliver the deets... This law would've made hiring drivers more expensive, making these chronically unprofitable apps even more unprofitable. Now they'll save billions of $$$ in a key market. Uber and Lyft shares soared more than 10% yesterday.
It's a massive blow to AB5... Gig companies were the main target of this law. Now that they're exempt, that just leaves other independent contractors like freelancers. But AB5 has caused some companies to stop hiring CA freelancers to avoid paying them as employees. Vox cut 200 freelance writers to comply with AB5. That's why CA has been handing out exemptions and loosening requirements.