How much it would cost Uber and Lyft if drivers were employees

Jun 14, 2019 - Quartz

Uber and Lyft are scared.

A bill passed by the California Assembly seems likely to classify Uber and Lyft drivers as employees, instead of their current status as independent contractors. Under guidelines laid out in the bill, which is now with the state senate, ride-hail drivers would likely fail the contractor test because they don’t perform work “outside the usual course of the hiring entity’s business.” Put another way, drivers drive, and driving is essential to Uber and Lyft.

On June 12, Uber’s and Lyft’s top executives took the extraordinary step of co-authoring an op-ed in the San Francisco Chronicle that pushes back on the bill and promises to improve work quality and job security for their drivers. The rare public alliance between Uber CEO Dara Khosrowshahi and Lyft co-founders Logan Green and John Zimmer, whose companies are bitter rivals in the US, is the clearest sign of how seriously these companies are taking the legislative t...