' Emma Bunin | MTTLR

California’s Prop 22: A Cautionary Tale

Even before COVID-19 hit last year, food delivery apps such as Caviar and Postmates had gained popularity as a convenient and relatively quick way to order food without the hassle of long lines or even needing to leave home. After the pandemic led to shelter-in-place orders and temporarily closed indoor dining in several states, there was an even greater demand for these food delivery services that provided a safe alternative to going out to eat or walking inside a restaurant to pick up a carry-out order. Additionally, even though these delivery apps are run by large corporations, this technology made it easier for diners to support local restaurants at a time when their patronage was even more impactful. According to MarketWatch, in the six months between April 2019 and September 2019, four of the major delivery app services – DoorDash, Uber, Grubhub, and Postmates – collectively brought in $2.5 billion in revenue. In the same time period the following year, which covered the early days of the pandemic, revenue for these four companies more than doubled to a combined $5.5 billion. However, as the popularity of these apps grew, so did the criticism and controversies surrounding their business practices. All eyes have been on California for the past few years with regard to the laws surrounding this relatively new type of employment and how to classify “gig” workers employed by rideshare and food delivery companies. Originally, companies like Uber and DoorDash were able to cut operating costs by hiring independent contractors as opposed to full-time employees. By doing so, these companies were able to deny their workers minimum wage,...