As the votes roll in for the presidential election, another important vote took place yesterday. In California, residents voted on Prop 22. According to Business Insider, “Proposition 22 is a November ballot measure that aims to exempt ride-sharing and food-delivery firms from AB5, a California gig worker law that forces Uber and Lyft to classify their drivers as employees.” After an enormous effort by “Gig Firms” to prevent AB5 from impacting their workforce the votes are in. According to Transportation Topics, “Uber, Lyft and other app-based ride-hailing and delivery services spent $200 million in a winning bet to circumvent California lawmakers and the courts to preserve their business model by keeping drivers from becoming employees eligible for benefits and job protections. The titans of the so-called gig economy bankrolled the most expensive ballot measure in state history, which was decided Nov. 3 with 58% of more than 11 million voters choosing to keep drivers classified as independent contractors able to set their own hours.” This landmark decision has enabled these companies to remain in California without having to re-label their drivers as employees.
On Thursday, a California appears court upheld a state order that ride sharing companies, Uber and Lyft are required to treat their drivers in California as employees instead of independent contractors. The ruling from the court comes less than two weeks before voters in the state of California will be asked to vote on Proposition 22 on November 3rd. Proposition 22 classifies app-based drivers as independent contractors instead of employees and provides independent contractor drivers other compensation, unless certain criteria are met.
This evening the world’s largest ride hailing giant, Uber will price its initial public offering just ahead of its Friday trading debut. Analysts predict the valuation of the IPO will be between $80.5 billion to $91.5 billion. Uber has stated there will be 1,676,959,021 shares outstanding after the IPO which would suggest a price range of $44 to $50 per
share. The projected valuation would make Uber the 4th highest offering of the decade behind only General Motors, Facebook, and the Chinese e-commerce giant Alibaba Group.