Report Finds: Without a fix, it will reduce work opportunities and increase wait times and costs for passengers
SACRAMENTO – Today, ridesharing platform Lyft released a report from Beacon Economics that finds 300,673 California Lyft drivers will be out of work unless legislators fix Dynamex to allow drivers to remain independent contractors. The total number of rideshare drivers who will lose work as a result is likely higher considering Uber or other on-demand platforms did not participate in the study.
The report examines three scenarios–all resulting in a significant reduction in work opportunities for drivers if they are forced to become employees. Passengers will in turn see significantly longer waits and higher costs. In rural and suburban communities, passengers may lose rideshare service altogether due to the lack of drivers.
The report includes the number of drivers who would be out of work in each Senate and Assembly district. The executive summary report can be viewed in the link here.
6,461 rideshare drivers out of work in AD 80 (Assemblymember Lorena Gonzalez-Fletcher, author of AB 5)
5,120 rideshare drivers out of work in AD 63 (Speaker Anthony Rendon)
9,751 rideshare drivers out of work in SD 39 (Senate President Pro Tem Toni Atkins)
12,159 rideshare drivers out of work in SD 18 (Senate Majority Leader Bob Hertzberg)
4,180 rideshare drivers out of work in AD 57 (Assembly Majority Floor Leader Ian Calderon)
Assembly Bill 5, sponsored by Lorena Gonzalez-Fletcher (D-San Diego) will be voted on by the Legislature in the next two weeks. Rideshare companies have proposed an alternative solution with additional workplace protections and a minimum earnings floor that would benefit drivers without taking away their independence.