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Prop 22 Is an Egregious Display of Corporate Power

WASHINGTON - The American Economic Liberties Project released the following statement in response to the passage of Proposition 22, a California ballot initiative backed by dominant rideshare and food delivery apps that absolves the companies of any responsibility to their workers and writes into California state law a minimum wage as low as $5.64/hour.

“Prop 22 passed because some of the world’s wealthiest corporations spent more than $200 million deceiving voters so that they could strip their workers of the basic protections all working people need and deserve,” said Morgan Harper, Senior Advisor at the American Economic Liberties Project. “Prop 22 is not just the most expensive ballot initiative of all time. It is also an egregious display of the ways dominant corporations use ill-won profits to entrench their power, shape public discourse, influence government policy, and avoid accountability. But coming from dominant and dangerous companies like Uber, Lyft, DoorDash, and Postmates, it’s not a surprise.”

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“Since they were established, Uber, Lyft, DoorDash, and Postmates have done all they can to exploit the workers who make their services possible. From ignoring legislation like AB5 and misclassifying their drivers as ‘independent contractors’ to brazenly plunging into market after market with zero regard for local taxi and limousine service regulations or emergency delivery fee caps, these dominant apps have shown time and again that breaking the law is a fundamental feature of their business model,” added Harper. In the days and weeks to come, we encourage policymakers and enforcers to investigate the practices of these corporations to protect workers and small businesses.”

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The American Economic Liberties Project launched in February 2020 to help translate the intellectual victories of the anti-monopoly movement into momentum towards concrete, wide-ranging policy changes that begin to address today’s crisis of concentrated economic power.

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