Uber And Lyft Drivers In California Win A Path To Unionization 

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Uber And Lyft Drivers Protest For Fairer PayImage Credits:Justin Sullivan / Getty Images

11:53 AM PDT · August 29, 2025

California lawmakers struck a woody pinch Uber and Lyft that will let app-based drivers to shape unions.

The statement is simply a triumph for gig workers who person agelong been classified arsenic independent contractors, and thus, ineligible for definite protections that labor receive, for illustration nan correct to corporate bargaining.

Gov. Gavin Newsom, alongside Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas, announced Friday support for 2 pieces of authorities that shape a pathway for app-based drivers to unionize. Assembly measure 1340, is sponsored by SEIU California, and Senate Bill 371 is sponsored by Uber and Lyft.

Newsom called it an “historic statement betwixt workers and business that only California could deliver.” He said labour representatives and nan companies “found communal crushed that will empower hundreds of thousands of drivers while making rideshare much affordable for millions of Californians.”

The statement creates a exemplary for drivers to beryllium capable to shape for accrued pay, occupation protections, and different benefits.

In exchange, California regulators opportunity they’ll support authorities to trim costly security sum mandates that ride-hailing companies person to pay. Uber and Lyft person attributed those security payments to higher thrust fares successful California and little driver pay.

The woody comes years aft Uber, Lyft, and different app-based gig companies spent much than $200 cardinal to person California voters to walk Prop 22, which classifies gig workers arsenic independent contractors while granting them constricted benefits. 

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Drivers person agelong criticized nan strategy for giving companies wide power complete salary and deactivations, leaving them constricted powerfulness to power net aliases moving conditions. Supporters of nan caller statement opportunity it could springiness drivers a stronger sound successful pushing backmost against unfair treatment. 

The woody could person ripple effects crossed different states. In 2024, Massachusetts voters approved a akin inaugural to let ride-hail drivers to shape unions and discuss pay, benefits, and moving conditions. 

Rebecca Bellan is simply a elder newsman astatine TechCrunch wherever she covers nan business, policy, and emerging trends shaping artificial intelligence. Her activity has besides appeared successful Forbes, Bloomberg, The Atlantic, The Daily Beast, and different publications.

You tin interaction aliases verify outreach from Rebecca by emailing rebecca.bellan@techcrunch.com aliases via encrypted connection astatine rebeccabellan.491 connected Signal.

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