Less than two weeks ahead of the election, Uber and Lyft are hitting new roadblocks after pouring money into a ballot measure intended to protect their business model.
On Thursday, a California appeals court put that strategy into question when it upheld an earlier ruling that the ride-hailing companies must classify their workers as employees instead of independent contractors. The court ruling won't take effect for 30 days, adding even more pressure on the ride-hailing companies' Proposition 22.
Later that day, a group of California Uber drivers filed a lawsuit against Uber alleging the company is engaged in illegal political coercion by constantly sending them pro-Prop 22 in-app alerts. The suit asks for $260 million in penalties.
Uber, Lyft, Postmates and other app-based delivery giants have pumped over $180 million into Prop 22 to keep their drivers from needing to be reclassified as employees. Experts say if it fails, labor costs for the companies could jump 20 to 30%.
The barrage of cash has been spent on in-app messages, commercials and text messages about how drivers would lose flexibility and health care if the measure doesn't pass. The companies also say prices and delivery wait times for customers would skyrocket.
If it passes, gig workers wouldn't be entitled to protections including paid sick leave, overtime pay, and other benefits laid out in California's recently passed AB5 law.
- Alto, Arcade City Rideshares Eye L.A. as Uber, Lyft Stall - dot.LA ›
- Two California Ballot Measures Could Have Outsized Impact On ... ›
After completing a costly renovation less than a year ago, the once high-flying e-scooter unicorn Bird Rides has put its airy and sleek Santa Monica offices up for sublease, dot.LA has learned. Prior to the pandemic, Bird was looking at tripling its local footprint, but now with a local workforce numbering less than half what it was before the pandemic and those who remain working from home indefinitely, the company is dramatically downscaling.
The move comes as Fidelity Investments filed a disclosure Friday with the SEC revealing it has marked down the value of its Bird investment by 17% since the beginning of the year.
- Bird Scooters Could Benefit From a Post-Covid World - dot.LA ›
- Bird Pay Will Let Scooter Users Purchase From Local Vendors - dot.LA ›
- Bird Acquires European e-Scooter Company Circ, Raises $75 ... ›
- Here's How Bird Laid Off 406 People in Two Minutes - dot.LA ›
- Bird Drops its Santa Monica HQ - dot.LA ›
- NASA's Plans to Create a Free Market in Space - dot.LA ›
In an Amazon-driven ecommerce world, it's hard to fathom just how time-consuming it can be for retailers like Lay-Z-Boy to ship their inventory across the country.
Even though one-click ordering and GPS tracking are commonplace for consumers, the trucking and logistics industry that brings merchandise from around the world to store shelves relies largely on phone calls, personal relationships and Excel.
A slew of tech-fueled companies from NEXT Trucking to ZUUM are trying to modernize the $1.2 trillion transportation industry, made up largely of small fleets that serve manufacturers to large multinational enterprises.
Matt Tabatabai is co-founder and COO of ZUUM.