policy brief

Challenges and Opportunities Facing App-Based Gig Drivers Extend Beyond Driver Pay

Publication Date

August 1, 2024

Author(s)

Susan Shaheen, Jaquelyn Broader, "Brooke (Schmidt) Wolfe ", Adam Cohen

Areas of Expertise

Public Transit, Shared Mobility, & Active Transportation

Abstract

Throughout the U.S., app-based gig drivers provide valuable services for courier network services (CNS) like Instacart, Uber Eats, and DoorDash, and transportation network companies (TNCs) such as Uber and Lyft. In California, gig labor classification is governed, among other things, by Assembly Bill 5 (AB 5) and Proposition 22 (Prop 22). AB 5 established the ABC Test for worker classification in California labor law, which resulted in most app-based drivers being classified as employees. However, Prop 22 exempted gig drivers from the ABC Test. As a result, most CNS and TNC drivers in California are classified as independent contractors. This brief provides insights to evolving CNS and TNC labor policy, featuring key findings from research involving interviews with experts (n=8) across the U.S. representing labor, academia, and regulators between June 2022 and February 2024 and an examination of how other cities and states are approaching this issue.