Ride-hailing, delivery giants win fight against US labour law

A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, United States, May 13. — Reuters

OAKLAND, California: App-based companies like Uber, Lyft and Doordash have dodged a potentially devastating blow to their industry by carving out an exemption from a California, United States law that required them to classify their drivers as employees instead of contractors.

California voters passed Proposition 22 and delivered a stinging rebuke to state lawmakers and labour leaders who were fighting for better working conditions for a growing number of people who drive for ride-hailing and food delivery services.