By Strauss Cooperstein
California’s ballot measure that secures gig workers’ status as independent contractors swiftly passed on Wednesday due to a massive “Yes on 22” campaign backed by tech platforms. California Proposition 22 (Prop 22) passed with approximately 58% of voters supporting an adoption of labor and wage policies specific to app-based rideshare and delivery companies. Compared to the $20 million investment in labor group funding for the "No" campaign, the "Yes" platform received over $200 million primarily from Uber, DoorDash, Lyft, and Instacart, used to create billboards, prints, radio ads, and even fund academic research. In the past, companies have spent comparable amounts to influence ballot fights to little avail. This time, Prop 22’s victory could be attributed to the sophisticated nature of engaging consumers through digital advertising and app notifications.
According to a UC Berkeley Institute of Studies poll, at least 25% of voters were undecided on the measure a week leading up to the vote, allowing for apps to use their digital reach and subtly impact voters via political content. Specifically, Uber and Lyft’s 'coercion' consisted of app banners to riders and drivers alike where users had to click confirm on pop-up messages that advertised the benefits of Prop 22. Some apps even warned the users of hiring freezes, stagnant customer wait times, as well as ride or delivery prices skyrocketing. These mass messaging campaigns received some backlash but lawsuits were not successful as app users were never punished for not supporting Prop 22. In fact, California’s Fair Political Practices Commission allows the advertising as long as the public is informed of who is paying for it, implying that pushing a political message is legal but may feel improper.
Upholding decades of protective labor and anti-discrimination laws in California, the opposition to Prop 22 built an argument slashing big corporations who are improving their profit margins at the expense of taxpayers and drivers. In their view, a risky contractor business model would not guarantee the proper payment and protection of full-time “safety net programs.” Even with support from 42% of voters, the "No" platform could not leverage mainstream technology channels into supporting or broadcasting its views. While pushback from state officials still remains an issue, executives at these companies boasted that the future of independent work is more secure. As Uber and Lyft’s stock price rose 14% and 11% respectively at the close of trading Wednesday, Prop 22’s story shows the role of mass messaging and digital advertising on local policy.