Uber, DoorDash Raising Prices in California to Fund Proposition 22 Related Driver Benefits

Uber and DoorDash confirmed they were raising prices to help fund driver benefits related to Proposition 22

Photo Credit Victor Xok

Bloomberg reported that both Uber and DoorDash raised prices for customers in California on Monday. For example, Uber said it would add 99 cents to each food delivery bill in LA, $2 in San Francisco and add surcharges to trips - which could go as high as $1.50 in less populated areas. The increases were related to funding driver benefits the gig economy companies promised their independent contract workforce if Proposition 22 passed. Under the newly passed Proposition 22 (‘Prop 22’) a new set of driver benefits are set to be created, including mileage reimbursement, occupational insurance, minimum earnings while active on a platform and a health stipend for those who work at least 15 hours a week. Lyft and Instacart declined to comment on whether they are also increasing their prices.

While Prop 22 was a major victory gig economy companies in their fight against classifying drivers as employees, the companies still face similar battles in other states, including New York (ex-NYC).

“[The gig economy companies] written their own labor law, and through deceptive advertising, they were able to get the electorate to approve it. Now, both drivers and consumers are paying the price.” - Nicole Moore, a Lyft driver and labor organizer with Rideshare Drivers United

“Executives at Lyft and Uber have said the initiative in California could serve as a blueprint for labor battles across the country. Last month, the companies started a national advocacy group, App-Based Work Alliance, which is expected to take a lead role next year as Illinois, Massachusetts, New York and Washington examine employment rights.” - Bloomberg

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The TLC Market Newsletter is written by Dawood Mian, Founder & CEO of TLC Market. He covers the NYC ridesharing industry and related news. Search TLC Market for cars, parts, tires, mechanics, reviews & more. Find great deals at TLCMKT.COM.