Uber's Global Expansion of Prop 22 Lobbying Efforts

Building on its recent victory in the election, Uber is indicating it intends to actively promote legislation mirroring Proposition 22, the measure recently endorsed by California voters that maintains the classification of gig workers as independent contractors. The ride-sharing company’s objectives for legislation supporting its operational structure extend internationally.

During a Thursday earnings discussion with financial analysts, Uber’s Chief Executive Officer, Dara Khosrowshahi, stated the company will “champion legislation similar to Prop 22 with increased emphasis.” He further explained that collaborating with governments throughout the United States and globally to achieve this outcome will be a key company focus.

The specific strategies for this “increased emphasis” remain undefined. Proposition 22 received financial support from Uber and Lyft, alongside on-demand delivery services DoorDash and Postmates. (Uber is currently finalizing its acquisition of Postmates). The campaign to enact the ballot measure and supersede a bill enacted by the California State Legislature – which would have mandated the classification of gig workers as employees for companies utilizing their services – involved substantial expenditures. Contributions to the Yes on 22 campaign totaled approximately $205 million, representing the highest amount spent on a California ballot measure since 1999.

Here is his full statement:

Currently, Khosrowshahi affirmed the company’s commitment to adhering to the requirements of Prop 22, which includes a minimum earnings guarantee of 120% of the minimum wage during active work periods, a reimbursement of 30 cents per mile driven, a healthcare allowance, occupational accident coverage for work-related injuries, safeguards against discrimination and sexual harassment, and automobile accident and liability insurance. These earnings guarantees and expense reimbursements are calculated based on a driver’s active working time, excluding periods spent waiting for rides or deliveries.

“Our primary attention is on the implementation of Prop 22 concerning our drivers,” he explained. Khosrowshahi acknowledged this implementation might lead to fare adjustments, but suggested any such increases “would likely not substantially impact trip demand, based on the patterns we’ve observed previously.”