California Governor Gavin Newsom has struck a deal with Uber and Lyft that (1) will unionize drivers, and (2) deliver big cost cuts to the ridesharing platforms. But it’s the unions themselves that will benefit most; helpful to the Governor as he prepares for a presidential run.
Uber and Lyft will see a 70% – 94% reduction in how much insurance they have to carry, and while unions will be able to collect dues they won’t get much bargaining leverage.