San Francisco (AFP)

Uber's victory in California over the status of drivers strengthens its business model - unprofitable so far - but sets a worrying precedent for the tens of millions of self-employed people in the United States.

On Tuesday, Californian voters voted more than 58% in favor of "Proposition 22", formulated in particular by Uber, to circumvent a law of this state which came into force in January.

This requires companies in the "gig economy" (task-based economy) to hire their self-employed workers, starting with drivers.

"I am worried about the signal this sends to large employers, as if all it takes is financial resources and a campaign cynical enough to rewrite labor laws," responded Brian Justie, researcher at the Labor Institute of the UCLA university.

The two chauffeur-driven car reservation platforms (VTC), and their Postmates allies, DoorDash and Instacart, spent more than $ 200 million on their campaign, compared to less than $ 20 million on the opponents' side, making it the referendum the most expensive in the history of the state.

Their victory saves them huge expenses in recruiting and benefits, while they have never managed to turn a profit.

Uber again lost more than $ 1 billion in the third quarter, on revenue of $ 3.1 billion.

The ad campaign put heavy emphasis on the flexibility and compensation provided for the tens of thousands of Californian drivers: a guaranteed minimum income, a contribution to health insurance and other insurances, depending on the number of hours worked per week. .

- New world -

"We have a really unprofitable sector that has bought a new lease of life and trapped lawmakers," comments Brian Justie.

The referendum was followed closely in the rest of the country and beyond: if a state as democratic as California fails to impose its laws on the "gig economy", the battle seems difficult to win elsewhere.

"Uber wants us to believe that we are in a new world, which requires the creation of a third category of workers", and to get out of the dichotomy between employees and self-employed, analyzes the researcher.

"But what will happen if massive chains like Walmart (supermarkets) start to say that they also have this third category?"

"In the future you are going to see us promote new laws like the + Prop 22+ more intensely," Uber boss Dara Khosrowshahi said in an analyst briefing Thursday.

"It is a priority for us to work with governments in the United States and around the world to make this a reality."

For supporters of the “no” in the referendum, Uber's vision means second-rate social protections and a step backwards on fundamental rights.

"Proposition 22 will leave the workers of the + gig economy + without representation, without the possibility of negotiating income that allows them to live properly and without a voice in general," said Brendan Sexton, director of a body representing independent drivers.

- For better and for worse -

"The fight is just beginning," he continued, calling for collective bargaining, rather than endless referendums and legal battles.

In 2019, New York City implemented a minimum wage for Uber and Lyft drivers.

The city of Seattle has just decided on a similar measure.

A lesser evil for the two leaders of VTC: granting financial compensation remains less expensive than hiring.

"It's like Amazon, which pays its employees at least $ 15 per hour, without being obliged to. (...) this probably helps prevent the formation of unions," notes Patrick Moorhead, a financial analyst.

If the no had won, "it would have been a death sentence for these companies," he says.

"For better or for worse, I think their vision will become the default model."

But many drivers feel that they are not truly independent, having no say in the terms of the contract and having to constantly obey the mobile application.

"It is unfair on the part of other Californians to deny us the rights they enjoy themselves," responded Karim Benkanoun, Uber driver since 2012.

Others supported the possibility of working when it suits them, especially when they are students or already employed elsewhere.

But according to a study by the city of San Francisco, the vast majority of drivers work in this profession full-time and 15% depend in part on public assistance to survive.

© 2020 AFP