What Proposition 22 Now Makes Possible
California’s classification for gig workers provides a new model for labor in many industries.
Since gig work first emerged, we’ve needed a new classification for workers who don’t strictly fit the categories of either employees or independent contractors. Proposition 22, the referendum passed by California voters last week, opens up this option for people working for ride-hailing and delivery apps—and shows a way forward for redefining the relationship between tech companies and labor more broadly.
Menlo Ventures, the VC firm where I’m a partner, invested in Uber in 2011, inspired by its vision to provide transportation on tap, keep drivers employed (versus idly waiting) and create a vastly more accessible consumer experience. The model revolutionized transportation worldwide—with Uber reaching over 700 cities within 10 years—and inspired other industries.