Uber Technologies Inc. reportedly raised its prices for customers in California recently, and DoorDash Inc. will soon follow. The added fees are destined to fund new driver perks the companies promised if Prop. 22 passed, which it did in November’s election.

The ridesharing company said the cost to customers will vary depending on the city and type of service. For example, each food delivery bill in Los Angeles increased by 99 cents, the surcharge for rides is 75 cents. In San Francisco, it’s an additional $2 for food delivery and 30 cents for rides. Prices go as high as $1.50 in less populated areas in the state.

Other gig economy companies that promised to begin offering workers a health care subsidy and other perks if Prop. 22 passed were less forthcoming about how they would pay for the effort. DoorDash, the largest food delivery provider in the country and big contributor to the Yes on 22 campaign, said it will make “slight percentage increases” to service fees on some customers’ orders. Spokespeople for Instacart Inc. and Lyft Inc. told Bloomberg they haven’t raised prices but declined to specify whether that would change in the future. 

One Lyft driver and labor organizer told Bloomberg that voters were duped into supporting Prop. 22, which ended up costing them more without securing adequate working conditions for drivers: “[Gig companies have] written their own labor law, and through deceptive advertising, they were able to get the electorate to approve it. Now, both drivers and consumers are paying the price.” 

The gig economy companies spent more than $200 million to ensure the passage of Prop 22, making it the most expensive ballot measure in California history. It overturned AB5, which was designed to reclassify gig economy workers as employees with benefits, at a substantial cost to the companies, and the companies were supposed to abide by it at the start of 2020. Instead, Uber and Lyft had threatened to temporarily shut down statewide and reconsider offering service in less populous locales if the measure failed. 

Prop 22 creates a new, limited set of benefits, such as mileage reimbursement, occupational insurance, minimum earnings while conducting a gig, and the health stipend for those who work at least 15 hours a week.

Incentivized by the measure’s success, executives at Lyft and Uber have said the initiative in California could serve as a blueprint for labor battles across the country. Last month, the companies started a national advocacy group, App-Based Work Alliance, which is expected to take a lead role next year as Illinois, Massachusetts, New York and Washington examine employment rights.

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Neama Rahmani is the President and co-founder of West Coast Trial Lawyers.

Neama graduated from UCLA at the age of 19 and Harvard Law School at the age of 22, making him one of the youngest graduates in the 200-year history of the…

Neama Rahmani is the President and co-founder of West Coast Trial Lawyers.

Neama graduated from UCLA at the age of 19 and Harvard Law School at the age of 22, making him one of the youngest graduates in the 200-year history of the law school. Upon graduation, Neama was hired by O’Melveny & Myers, the largest law firm in Los Angeles, where he represented companies such as Disney, Marriott, and the Roman Catholic Church.

But Neama wanted to help ordinary people, not corporations, so he joined the United States Attorney’s Office, where he prosecuted drug and human trafficking cases along the United States-Mexico border. While working as a federal prosecutor, Neama captured and successfully prosecuted a fugitive murderer and drug kingpin who had terrorized Southern California and was featured on “America’s Most Wanted.” Neama was then appointed to be the Director of Enforcement of the Los Angeles City Ethics Commission, an independent watchdog that oversees and investigates the elected officials and highest level employees of the City of Los Angeles, including the Mayor and City Council. He held that position until becoming a trial lawyer for the people.

Neama has extensive trial experience. He has led teams of more than 170 attorneys in litigation against the largest companies in the world. Neama has successfully tried dozens of cases to verdict as lead trial counsel, and has argued before both state and federal appeals courts. Over the course of his career, Neama has handled thousands of cases as attorney of record and has helped his clients obtain more than $1 billion in settlements and judgments.