---
title: "Rideshare and Delivery Giants Push Back on Legislation That Would Disrupt Gig-Economy Businesses"
url: https://burnaze.com/article/a9777ac4-e006-4ae9-b76d-ed6d3a3ed7da
source: "1851 Franchise"
original_url: https://1851franchise.com/rideshare-and-delivery-giants-push-back-on-legislation-that-would-disrupt-gig-economy-businesses-2710556
category: "Suppliers"
industry: "Franchise Industry"
segment: "Suppliers"
topics: ["Regulation & legal"]
published: 2019-07-23T15:10:18.000Z
modified: 2026-11-01T02:32:36.052Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/6710ee754cca78bed0ff22be530298e48427.jpg
---

# Rideshare and Delivery Giants Push Back on Legislation That Would Disrupt Gig-Economy Businesses

**TL;DR:** Rideshare and delivery giants, including Postmates, are pushing back on legislation that would disrupt gig-economy businesses by reclassifying drivers and couriers as employees. The bill, passed in California, would increase costs for these companies and provide labor protections for workers.

*originally published in 1851 Franchise on 2019-07-23. [Read the original](https://1851franchise.com/rideshare-and-delivery-giants-push-back-on-legislation-that-would-disrupt-gig-economy-businesses-2710556).*

## Story

Rideshare and delivery giants are pushing back on legislation that would disrupt gig-economy businesses. California legislators passed a bill in May that could level the playing field for gig-workers. The bill would turn drivers and couriers who are currently classified as independent contractors to employees eligible for minimum wage, benefits, and more labor protections.

This would cost these companies who have previously relied on low-wage labor a significant chunk of change. Postmates co-founder and CEO Bastian Lehmann recently penned an op-ed giving his take on the future of the industry. While Lehmann's statement is presented as progressive, the language is purposefully vague, citing flexibility of gig work as the job's primary benefit.

Eater contributor Jenny Zhang argues that alternative solutions offered by Lehmann, such as tech company-contributed crowdfunded benefits, are not a long-term solution for an unsustainable business model. The structural changes proposed by AB5 are perhaps a sign of more to come, and an upheaval of the gig-economy structure at large.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- California (location)
- Postmates (company)
- legislation (topic)
- gig economy (topic)
- labor protections (topic)
- delivery giants (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/rideshare-and-delivery-giants-push-back-on-legislation-that-would-disrupt-gig-economy-businesses-2710556). Summarized by Burnaze (https://burnaze.com/article/a9777ac4-e006-4ae9-b76d-ed6d3a3ed7da).