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Uber and Lyft drivers in California win a path to unionization

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Uber and Lyft drivers in California win a path to unionization Rebecca Bellan AM PDT · August 29, 2025 California lawmakers struck a deal with Uber and Lyft that will allow app-based drivers to form unions and could make ride-hail fares more affordable.

The agreement is a win for gig workers who have long been classified as independent contractors, and thus, ineligible for certain protections that employees receive, like the right to collective bargaining.

Gov. Gavin Newsom, alongside Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas, announced Friday support for two pieces of legislation that form a pathway for app-based drivers to unionize. Assembly bill 1340, is sponsored

Newsom called it an “historic agreement between workers and business that only California could deliver.” He said labor representatives and the companies “found common ground that will empower hundreds of thousands of drivers while making rideshare more affordable for millions of Californians.”

The agreement creates a model for drivers to be able to organize for increased pay, job protections, and other benefits.

In exchange, California regulators say they’ll support legislation to reduce expensive insurance coverage mandates that ride-hailing companies have to pay. Uber and Lyft have attributed those insurance payments to higher ride fares in California and lower driver pay.

“With Sacramento now aligned on the need to make rideshare more affordable in California, we’re happy to see these two important pieces of legislation moving forward together,” Ramona Prieto, Uber’s head of public policy for California, said in a statement.

Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just a few of the heavy hitters joining the Disrupt 2025 agenda. They’re here to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $600+ before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They’re here to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | October 27-29, 2025 REGISTER NOW The deal comes years after Uber, Lyft, and other app-based gig companies spent more than $200 million to convince California voters to pass Prop 22, which classifies gig workers as independent contractors while granting them limited benefits.

Drivers have long criticized the system for giving companies broad control over pay and deactivations, leaving them limited power to influence earnings or working conditions. Supporters of the new agreement say it could give drivers a stronger voice in pushing back against unfair treatment.

The deal could have ripple effects across other states. In 2024, Massachusetts voters approved a similar initiative to allow ride-hail drivers to form unions and negotiate pay, benefits, and working conditions.

This article was updated with a statement from Uber.

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Rebecca Bellan Senior

Rebecca Bellan is a senior

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