Uber, Lyft Drivers Gain Historic Right To Unionize In California As Newsom Signs Bill Impacting 800,000 Gig Workers

Governor Gavin Newsom (D-Calif.) on Friday signed a landmark bill granting Uber Technologies Inc. (NYSE:UBER) and Lyft Inc. (NASDAQ:LYFT) drivers the legal right to unionize, marking a major victory for gig workers.

Uber, Lyft Drivers Gain Legal Right To Unionize In California

The legislation allows drivers, classified as independent contractors, to collectively bargain for pay, benefits, and working conditions, reported TechCrunch.

The bill is part of a broader agreement between lawmakers, unions, and ride-hailing companies, which also includes separate legislation lowering insurance requirements for Uber and Lyft.

Over 800,000 Gig Workers Poised To Benefit From Landmark Labor Bill

More than 800,000 drivers in the state stand to benefit.

"These bills represent a compromise that lowers costs for riders while creating stronger voices for drivers," said Ramona Prieto, Uber's head of public policy for California.

Newsom described the agreement as a “historic agreement between workers and business that only California could deliver," highlighting the state's unique role in shaping gig economy labor laws.

Newsom announced on X that he signed a bill allowing California's 800,000 rideshare workers to unionize, emphasizing the state's commitment to giving workers voice, choice, and dignity.

Uber Rolls Out Cash Payments, Waymo Robotaxi Popularity Grows

In August, Uber began accepting cash payments in the U.S., prompting driver safety concerns in cities like Los Angeles, Tampa, and San Diego.

The company said the move aimed to help customers without bank accounts while prioritizing driver safety through identity checks.

Meanwhile, Uber users increasingly chose Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) Waymo autonomous taxis over human drivers, often skipping multiple rides before getting a Robotaxi.

Trips were typically short and inexpensive, under $12 and four miles.

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