Greetings and welcome back to Human Capital, your source for the newest developments in technology employment and diversity initiatives.

With the election drawing near and considering the significant implications of California’s Proposition 22 for the “landscape of work,” as expressed by Vanessa Bain, an Instacart worker and co-organizer with Gig Workers Collective, in a recent TechCrunch interview, we are closely monitoring this ballot measure. Companies operating within the gig economy, including Uber, Lyft, DoorDash, and Instacart, have collectively invested over $180 million in support of Prop 22, which aims to maintain the classification of their drivers and delivery personnel as independent contractors.

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Gig Work

Instacart initiated a request for its workforce to distribute promotional materials supporting a Yes vote on Proposition 22 to customers

Vanessa Bain, an Instacart shopper and a co-founder of the Gig Workers Collective, reported via social media that certain shoppers received instructions to share Yes on 22 stickers with customers. These materials were made available at a retail location in the Bay Area during the past weekend, though Instacart maintains there are currently no plans for wider distribution.

Numerous individuals, including Bain, have raised questions regarding the legality of this action. 

https://twitter.com/hashtagmolotov/status/1315073745006989312

Instacart communicated to CNN that the initiative is permissible under existing campaign finance regulations. Furthermore, I contacted the Fair Political Practices Commission and was informed by Communications Director Jay Wierenga that “a determination of whether someone or group violated the Political Reform Act can only be made through an investigation by FPPC Enforcement (or a District Attorney or the Attorney General’s Office).” 

However, it is evident that this action conflicts with the preferences of many workers. We had the opportunity to speak with Bain prior to the relaunch of TechCrunch Mixtape, where she explained her opposition to Proposition 22. The episode will be released next week, but here is a preview of our discussion:

“The very essence of the future of work is on the line,” Bain stated to us earlier this week. “I would also contend that the future of our democracy is at risk. Allowing corporations to independently create their own labor laws sets a concerning precedent…This policy was designed to exclusively benefit companies, to the disadvantage of workers.”

A large demonstration against Prop 22 took place in San Francisco

A significant protest against Proposition 22 occurred in San Francisco. While Proposition 22 would offer some improvements over current conditions for workers, many drivers and delivery personnel believe these improvements are insufficient. For instance, Proposition 22 proposes healthcare subsidies, but does not provide comprehensive healthcare coverage.

In San Francisco, 76% of app-based workers identify as people of color

Additionally, 39% are immigrants, according to the most recent survey of gig workers conducted by the Local Agency Formation Commission and UC Santa Cruz Professor Chris Benner.

This research involved surveying 259 workers who provide driving or delivery services for DoorDash, Instacart, or Amazon Fresh. Other key findings included:

• 71% of workers derive at least three-quarters of their monthly income from gig work
• 57% of workers depend entirely on gig work for their monthly income
• Workers earn an average of $450 per week. After accounting for expenses, this average decreases to $270 per week.

A California appeals court reviewed arguments in the Uber and Lyft gig worker classification case

Judges from the California 1st District Court of Appeal heard arguments from Uber and Lyft regarding their ability to continue classifying their drivers as independent contractors. This hearing stemmed from a district judge’s issuance of a preliminary injunction that would require Uber and Lyft to immediately reclassify their workers as employees. Uber and Lyft subsequently appealed this ruling, leading to the current proceedings.

As Uber and Lyft have maintained that drivers would lose flexibility if compelled to become employees, an appeals court judge inquired as to which provision of AB 5 would necessitate the removal of such flexibility. It is worth noting that AB 5 contains no such requirement.

However, a legal representative for Lyft, which has stated it would exit California if forced to reclassify its workers, expressed concern that if the injunction is upheld, “these people will no longer have these earning opportunities.”

Uber’s worker survey regarding Prop 22 indicates substantial support for the ballot measure

It is important to recognize that out of the more than 200,000 Uber drivers in California, only 461 workers took part in the study. Uber conducted this survey between September 23 and October 5 to gauge driver sentiment regarding Proposition 22 and independent contractor status. The survey results showed that 54% of respondents stated they would definitely vote yes on 22 if the election were held today, while 13% indicated they would definitely vote no.

“Our primary focus is on understanding what gig workers truly desire,” an Uber spokesperson stated. “Therefore, we are encouraging all Uber and Uber Eats users to inquire with their driver or delivery person about their genuine feelings regarding Proposition 22.”

Based on the language used in the in-app message, Uber appears confident that the majority of drivers support Proposition 22.

Social Media Platforms Address Holocaust Denial

In recent actions to combat harmful content, both Facebook and Twitter have begun removing posts that deny the Holocaust, the horrific, government-sponsored genocide of approximately 6 million Jewish individuals. Facebook announced on Monday its policy to prohibit such posts, citing a concerning increase in anti-Semitism and a widespread lack of understanding regarding the Holocaust, particularly among younger generations. Twitter followed suit on Wednesday with a comparable declaration.

BLCK VC Introduces Black Venture Institute

BLCK VC, in collaboration with Operator Collective, Salesforce Ventures, and UC Berkeley Haas School of Business, has launched the Black Venture Institute with the aim of empowering more Black entrepreneurs to become angel investors. The initiative intends to train 300 individuals over the next three years, equipping them with the resources to make investment decisions. 

“These exclusive networks have historically contributed to limited opportunities for the Black community,” explained BLCK VC co-founder Frederik Groce to Ron Miller of TechCrunch. “The Black Venture Institute represents a deliberate effort to broaden access for Black professionals—ranging from engineers to product marketing managers.”

GV Appoints Terri Burns as First Black Female Partner

Terri Burns has recently been promoted to partner at GV, previously known as Google Ventures. This appointment makes Burns the sole Black female partner at GV, a significant milestone. However, it is acknowledged that progress is ongoing and not yet complete. 

Previously, Burns shared her insights on the importance of racial justice within the technology and venture capital sectors. 

“Venture capital undoubtedly has a role to play,” Burns, then a principal at GV, stated to TechCrunch regarding the broader issue of diversity in the tech industry. “VC serves as a powerful mechanism for rapidly scaling businesses, and historically, access to this mechanism has not been equitable. For instance, VC funding has traditionally favored founders from a limited number of prestigious institutions—with 40% of VCs having attended either Harvard or Stanford, as noted by Richard Kerby, general partner at Equal Ventures, in 2016. A more equitable distribution of funding across diverse backgrounds would increase the likelihood of success for underrepresented individuals.”

Former Wing CEO Acknowledges Past Shortcomings

Audrey Gelman, the former CEO of The Wing who stepped down in June, shared a letter addressed to former employees of The Wing last week. Within the letter, Gelman expressed her regret for failing to adequately address instances of mistreatment experienced by women of color within the organization. She also conceded that the pursuit of rapid growth and success “compromised the development of a healthy and sustainable culture aligned with our stated values, and resulted in workplace practices that did not consistently make our team members feel valued and respected.”

Gelman stated that, as a result, The Wing “did not dismantle the historical oppression and racist foundations of the hospitality industry; instead, it presented a more superficially appealing version.”

Key points from her letter include:

• “The needs of members were prioritized, and those members were frequently white and financially capable of affording The Wing’s membership fees.”
• “Instances of white privilege and abuse of power were often met with acceptance rather than a firm commitment to our stated values.”
• “The realization that The Wing was not fundamentally different in the ways it had proclaimed was particularly disheartening, as the perception of difference reinforced the long-standing pattern of women of color, and especially Black women, experiencing disappointment from white women and the limitations of mainstream feminist ideals.”

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