Every Major Gig Company Has Now Raised Prices In California After Prop. 22

  • 📰 Forbes
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 53%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Critics say there’s no evidence gig worker conditions have improved after the passage of the measure keeping drivers independent contractors.

Instacart’s service fees in California are going up from 5% to 8%, the company announced Friday, making it the last major gig company to raise prices in response to Proposition 22, the recently passed state ballot measure keeping gig workers independent contractors, while providing some additional benefits.... [+]Key Facts

The increased service fee, which won’t apply to customers who have Instacart’s monthly or annual subscription service, will help cover the cost of driver benefits enshrined in Prop.

Postmates, Uber, Lyft and Doordash have all introduced small fees they say are necessary to pay for Prop. 22 benefits in California. is charging between 50 cents and $2.50 per order; Uber is attaching a $1.50 fee for rides and $2 for food delivery; Lyft’s fees are 30 cents to $1.50 based on location and Doordash is charging higher service fees.Labor advocates say gig companies raising prices is a “corporate bait and switch.” Gig companies argued that making drivers employees would raise prices, but fees are still going up anyway. “Now that Prop.

“Customers have been experiencing artificially low prices because of venture capital subsidies,” Dubal told. “We’ve known for a long time that service fees were going to have to go up because the entire business model is based on capturing the market, addicting consumers to the service and then raising fees.” Uber CEO Dara Khosrowshahi has called Prop. 22, which went into effect in December, the “third way” to classify drivers.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The bankruptcy risk of every major cannabis company, rankedBusiness Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. good luck
Source: BusinessInsider - 🏆 729. / 51 Read more »

Every major company to leave Facebook so farA slew of major companies have withdrawn their presence and advertising spend across Facebook amid a growing concern over unregulated hate speech, racism and possible data breaches.
Source: Newsweek - 🏆 468. / 52 Read more »

Here's what every major analyst expects from Netflix's first quarter earnings reportNew for subscribers: Here's what every major analyst expects from Netflix's first quarter earnings report. Check out CNBCPro today. Pro I am looking for new, good friends
Source: CNBC - 🏆 12. / 72 Read more »