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Rideshare Companies Lobbying for Prop 22

Published on Oct 13, 2020 at 7:44 am in News.

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Rideshare companies like Uber, Lyft, Instacart, and DoorDash are heavily marketing their views on a California state employment law. Since Assembly Bill 5 was passed, rideshare companies have been advocating for Prop 22, which reduces the effects of Assembly Bill 5.

Prop 22 allows rideshare companies to keep workers as independent contractors, where Assembly Bill 5 would provide workers with employee status, which means making minimum wage, health insurance, paid sick leave, and workers’ compensation.

The New York Times reported on how the marketing from these companies is turning being a customer of a service to now being a target for corporate advertising.

Since the people of California are going to vote on this issue, they have to choose between jobs that don’t provide as much of a safety net and possibly reducing the amount of total jobs, but the jobs that remain offer more to those who have them.

Rideshare companies can lose a lot of money if Prop 22 doesn’t pass, which is why they’re marketing in full force. Mailers, emails, and those using the app will also get information on it before they’re able to use the app.

Companies like Uber are also telling users that the cost of using their services will likely increase if Prop 22 doesn’t pass.

This aggressive form of marketing, especially bombarding users when they open up the company’s app, may get its message to some people, as many may not want to pay more then they’re used to for these services. This tactic may get support this way, however, there’s also the chance it could work against them.

The constant advertising could annoy some of their users and they could become weary of this invasive marketing. If it bothers enough people, it could result in losing support. People want to be able to go about their day without becoming a marketing target.

As the decision on Prop 22 looms closer, it’s likely that these companies will not let up on their marketing. They’re likely going to hit as hard as they can to get awareness to as many people as possible. There is a lot of money on the line for companies and the vote on Prop 22 will definitely chart the course for how these companies will continue in the future.

Rideshare Law Group will follow this decision and post updates regularly. We’re staying up to date on this decision because of how it will affect workers and those who use the service. There may even be changes to how legal matters are handled if a rideshare accident occurs. Contact us here if you have any questions if you were involved in a rideshare accident.