Prop 22 Passes, a Victory for Uber, Lyft
Francesca Billington is a dot.LA editorial intern. She's previously reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. Before joining dot.LA, she was a communications fellow at an environmental science research center in Sri Lanka. She graduated from Princeton in 2019 with a degree in anthropology.
Uber, Lyft and other ride-hailing and delivery companies won their bid to keep drivers as independent contractors in what became the most expensive initiative in California history, with $200 million spent and led by the app-based services.
The initiative won decisively with 58% of the vote in a test for the tech-driven "gig economy" that is central to ride-hailing companies business model.
Uber, Lyft, Postmates and other app-based delivery giants overshadowed union opposition and pumped over $180 million into their effort to pass the measure. Its passage immediately sent stock of Uber and Lyft soaring.
Heather Foster, a spokesperson for Lyft, said the ballot measure sent a signal as the nation grapples with the rise of the gig economy.
"I think other states will be looking to see how they can work with us," she said. "Last night really solidifies this future of work...It's now a part of our economy."
Prop. 22 exempts ride-hailing and delivery companies from a new union-backed California law that requires their gig worker drivers be reclassified as employees.
Experts believed a loss could drive up labor costs 20% to 30%. And the companies would have had to dash their business models increasing costs and wait times for many riders.
The victory gives companies protections from the Democratic-leaning Legislature that passed the union-backed law demanding drivers be employees. The initiative requires a seven-eighths majority vote in the Legislature to be overturned and prevents drivers from unionizing.
But the ballot measure could have repercussions beyond how companies like Uber and Lyft classify their drivers.
Morgan Harper, an advisor at the American Economic Liberties Project, said it sets a "dangerous precedent," signifying to businesses with enough campaign money that they can create carve-outs from worker protection laws.
"The $200 million was spent to confuse people about what was going on in this proposition," she said. "Which was actually going to be more protective: the proposition or the law in place?"
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LA Tech Updates: Apple Podcast Vet Joins QCODE, Amazon Reportedly in Talks to Buy Wondery, Pharrell's New Black Ambition Incubator
Apple Podcast Veteran Joins Startup QCODE<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDUzNTQzMC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzNDUzMzYyNH0.pOGV2lL0qOJQDiWw1T5i4SqsGfaL54hLWED6_5Mf1Ww/img.png?width=980" id="8d68d" class="rm-shortcode" data-rm-shortcode-id="f2a47797239f360473fead53338231d4" data-rm-shortcode-name="rebelmouse-image" alt="qcode" />www.sonos.com <p>QCODE, a Los Angeles podcast startup run by a former Creative Artists Agency talent agent, snagged longtime Apple podcast executive Steve Wilson. The 15-year veteran will become QCODE's chief strategy officer.</p> <p>QCODE, which <a href="https://dot.la/sonos-podcast-qcode-2648395035.html" target="_self">last month raised $6.4 million</a> in a Series A round led by Sono, is positioning itself as a funnel for Hollywood. </p> <p>Founded by Rob Herting, a former agent who had represented largely writers and filmmakers, the company has produced eight shows since 2019. Several have been auctioned for film and television, including "Dirty Diana." Amazon picked up the 6-part erotic drama for a TV series.</p>Wilson, who most recently ran marketing for Apple Podcasts, brings insights from the behemoth platform as the industry sees revenues soar. Advertising brought in near $1 billion this year, according to Interactive Advertising Bureau's podcast report prepared by PwC.
Amazon Reportedly in Exclusive Talks to Buy Wondery<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDc5NDU5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0MjgyMDY3NX0.BHKSXjwra-gGsFEa7lXCCCMJXWV5cYxrZqhddj3-uds/img.jpg?width=980" id="d401d" class="rm-shortcode" data-rm-shortcode-id="c9c9eee1f9adc4c1d5edeca1af986a84" data-rm-shortcode-name="rebelmouse-image" alt="Hernan Lopez" />Hernan Lopez started Wondery with the belief that in-depth, narrative audio stories were poised to bloom.<p>Amazon is in "exclusive talks" to buy podcast company Wondery and subsume its 30 hit shows and over 8 million monthly listeners into its empire, the Wall Street Journal reported on Wednesday.</p> <p>The talks reportedly value Wondery above $300 million, in line with previous estimates from analysts, when Apple and Sony were said to have expressed interest.</p> <p>Wondery has produced dozens of original series including "Dr. Death" and "Business Wars," and has 19 shows currently in development to become television series. </p> <p>The company does not publicly disclose its financials, but chief executive Hernan Lopez has previously said the company is profitable. About three-quarters of Wondery's revenue comes from advertising, but Lopez has said the company's revenue share from content licensing is growing (Wondery owns the intellectual property for all of its originals). It also launched a subscription service, Wondery Plus, in June and is currently looking to expand its international footprint. </p> <p>Wondery, the West Hollywood-based company with the largest audience of any independent podcast producer, has been the subject of swirling rumors that several suitors are interested in acquiring it.</p> <p>After a pandemic-induced decline that struck much of the podcasting industry, Wondery's audience has surpassed its pre-COVID levels. Its Q3 revenue was about double year-on-year and its Q4 performance has been strong, Lopez previously told dot.LA. </p> <p>Podcasting overall now attracts over 100 million monthly listeners, according to Edison Research. The Interactive Advertising Bureau projects podcasting revenues to exceed $1 billion by 2021.</p> <p>That growth has spurred somewhat of an arms race, most evident in Spotify's spending spree, which also has helped that company diversify from its reliance on streaming. Amazon Music is one of Spotify's biggest competitors along with Apple Music, and <a href="https://www.wsj.com/articles/amazon-music-joins-podcasting-fray-11600261201?mod=article_inline" target="_blank" rel="noopener noreferrer">recently expanded into podcasts as well</a>. </p> <p>Acquiring Wondery would give Amazon more content to slide into Amazon Music, a scaled-down version of which is free for Amazon Prime subscribers. Combining that content with its Alexa smart speaker also could empower the company to capture more eyes and ears in the increasingly competitive attention economy. </p> <p>The talks are reportedly ongoing and no deal has been confirmed. </p>
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LA Tech Updates: Fidelity Reportedly Seeks to Unload Bird Shares at a Loss; Warner Bros Streaming 2021 Releases; Plug-In South LA's Accelerator for 2021
Fidelity Reportedly Seeks To Unload Bird Shares at a Loss<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjkwMTI2OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyOTc0NTgyM30.2gHsdIxx6hnX0sV0Evq4Xdc-UsOWfaDn5sxhMhUWVoQ/img.jpg?width=980" id="e3f93" class="rm-shortcode" data-rm-shortcode-id="7034229cee2777d3a9f7e45313d88a5b" data-rm-shortcode-name="rebelmouse-image" />Escooter Unicorn Bird Seeks to Unload Santa Monica HQupload.wikimedia.org<p>Fidelity Investments is attempting to unload some of its shares in Bird Rides Inc. at a loss, <a href="https://www.businessinsider.com/bird-investor-fidelity-selling-stake-scooter-2020-12?r=US&IR=T" target="_blank">according to a report</a> published Wednesday night by Business Insider.</p><p>The move comes <a href="https://dot.la/bird-scooter-2648232688.html" target="_self">after dot.LA reported in October</a> that the mutual fund giant has marked down the value of its Bird investment by 17% since the beginning of the year.</p><hr><p>As a private company, Bird does not have to share its financials. Nor do the venture funds that hold most of its shares. However, Fidelity is required to account for shares at their fair market value so it provides a rare glimpse into the company's health.</p><p>But a source close to the matter said the sale should not be seen as any indication of Bird's financial performance. The shares represent less than ten percent of Fidelity's position and the intended sale is the result of a new portfolio manager taking over who does not want to invest in pre-IPO companies, the source said. </p><p>Neither Bird nor Fidelity would respond to dot.LA's request for comment.</p><p>Bird <a href="https://www.inc.com/magazine/201902/will-yakowicz/bird-electric-scooter-travis-vanderzanden-2018-company-of-the-year.html" target="_blank" rel="noopener noreferrer">became the fastest company in history</a> to reach unicorn status in 2018 and achieved a $2 billion valuation less than a year later. But as the pandemic hit, it abruptly laid off 406 employees <a href="https://dot.la/bird-layoffs-meeting-story-2645612465.html" target="_self">via a Zoom call</a> and was forced to remove its fleet from city streets just as it was gearing up for its normally lucrative summer season. </p><p>dot.LA reported in October the company <a href="https://pbs.twimg.com/media/EjstMVqVoAAWd7f.jpg" target="_blank" rel="noopener noreferrer">put its Santa Monica offices up for sublease</a> less than a year after completing a costly renovation.</p><p>Bird has maintained <a href="https://www.bird.co/blog/empty-streets-effect-pandemic-unexpected-lesson-life-after-cars/" target="_blank" rel="noopener noreferrer">the pandemic has been a positive</a> as riders prefer scooters over crowded buses and subways. <a href="https://www.bird.co/blog/scooter-riders-making-comeback-riding-longer-than-ever/" target="_blank" rel="noopener noreferrer">It says it is seeing riders take longer trips</a> than they did before the pandemic. </p><p>Last month, <a href="https://dot.la/bird-ipo-2648944903.html" target="_self">Bloomberg reported</a> Bird is looking to go public via a blank-check company. Bird said it had no plans to go public "this year," which did not exactly rule out a SPAC sometime in the near future. </p>
Plug-In South LA Opens New Accelerator Cohort for 2021<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDg2MzAxMS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MTg0MTM1Mn0.QPKaMFTusp_uKe5Td0K77QKhp7KXUY6_An5edQ588VM/image.jpg?width=980" id="460a2" class="rm-shortcode" data-rm-shortcode-id="c53839f0b8ac6658fd10bb2da6ea53f8" data-rm-shortcode-name="rebelmouse-image" /><p>Plug In South LA's Accelerator Program is returning in 2021. The outfit is looking for 10 Black and Latinx founders who have proof of product-market fit and traction. The organization, founded in 2015 by Derek Smith, aims to build a network for Black and Latinx founders in South Los Angeles.<br></p><p>Last year was the inaugural accelerator program funded by Verizon, Silicon Valley Bank and Nike. The 2019 cohort hosted five startups including Spooler, a tech-based clothing design startup that credits the program with helping to increase revenue two fold since March. During the program, the company received a contract to launch a Sesame Street active wear product line. </p><p>The last day to <a href="http://pluginsouthla.com/accelerator" target="_blank">apply for the program</a> is Dec. 9 </p>
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