Judge Rejects Request To Ban Uber From Showing Messages Favoring Prop 22

Topline

Uber will be allowed to show drivers in-app messages in favor of California’s Proposition 22 after a lawsuit sought to stop the practice, a judge ruled Wednesday, as the company pushes for votes for the ballot initiative that would let gig companies avoid making their drivers employees in the Golden State.

Key Facts

Key Background

Uber, Lyft, Doordash and Instacart have spent nearly $200 million backing Prop 22, which would provide some benefits to drivers while keeping them independent contractors. Labor activists argue those protections aren’t enough, pointing to multiple analyses showing Prop 22’s proposed minimum wage is significantly less than advertised due to loopholes. It’s unclear what will happen if Prop 22 fails, but Uber has warned it would be forced to limit the number of drivers on the platform, raise prices for customers between 25% and 100%, create mandatory driver shifts and decrease service in suburban and rural areas.

What To Watch For

According to a U.C. Berkeley poll this week, 46% of voters support Prop 22 compared to 42% against, but 12% of voters are still undecided.