Rideshare and Delivery Giants Push Back on Legislation That Would Disrupt Gig-Economy Businesses

As third-party delivery apps and rideshare services have come under fire recently for ethically dubious labor practices such as tip theft, California legislators passed a bill in May that could level the playing field for the oft-sidelined gig-workers. The bill would turn drivers and couriers who are currently classified as independent contractors to employees eligible for minimum wage, benefits and more labor protections. This would, in effect, cost these companies who have previously relied on low-wage labor a significant chunk of change. 

According to a statement reported by Eater, Postmates co-founder and CEO Bastian Lehmann recently penned an op-ed giving his take on the future of the industry. While Lehmann’s statement is presented as progressive, the language is purposefully vague, citing flexibility of gig work as the job’s primary benefit. “In the same way that you can not sign up for a shift at Starbucks at 8AM, then run across the street to Peet’s to make a latte; and then come back an hour later to resume your shift at Starbucks only to go clock out because you need to complete a homework assignment — the level of flexibility realized in truly on-demand work is valued by over 80% of our fleet in California,” said Lehmann. 

Eater contributor Jenny Zhang argues that alternative solutions offered by Lehmann, such as tech company-contributed crowdfunded benefits, are not a long-term solution for an unsustainable business model. The structural changes proposed by AB5 are perhaps a sign of more to come, and an upheaval of the gig-economy structure at large.

Read the full story here.