Opinion: California Needs to Close Gig Economy Loopholes

A state bill would force gig companies to treat workers fairly and would stanch the flow of subsidies that keep customer costs artificially low.

1 minute read

June 23, 2019, 7:00 AM PDT

By Camille Fink


Transportation Network Company

Roman Tiraspolsky / Shutterstock

The gig economy exploits workers, and California lawmakers need to fix a broken system, argues Zakhary Mallett. Assembly Bill 5 would limit the ability of companies such as Uber and Lyft to classify workers as independent contractors and would provide worker protections.

Mallett worked as an Uber driver, and he makes the case that riders are not paying the full cost of their trips. Instead, the rides are subsidized by underpaying workers and depending on venture capital. For example, he explains that driver incentives to work during certain times and in certain locations result in an excess of drivers, longer wait times, and costs that are not passed on to customers.

"Take, for instance, a 32-minute trip I completed from South of Market to San Rafael: I waited 24 minutes to get that trip after my last drop-off and took in $66.98, while the rider paid just $38.71 — meaning Uber lost $28.27 on that trip," he writes. Mallett also discusses the additional societal costs from drivers flooding city streets, including traffic congestion and decreased available parking.

"Similarly, the companies have circumvented antitrust principles by using venture capital to subsidize their services at the expense of taxis, rental car companies, private parking companies, public transit and more. This isn’t innovation in urban transport and deliveries; it’s innovation in ripping off people, cities and industries," he notes.

Wednesday, June 19, 2019 in San Francisco Chronicle

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A swamp in South Carolina with tall pale trees and Spanish moss in the water.

Satanic Place Names

From streams and lakes to valleys and canyons, I mapped more than 1,000 places named after the Devil.

7 hours ago - The Daily Yonder

A rendering of a high speed rain station in California, with wide platforms and a sleep train with yellow highlights.

California High-Speed Rail Authority CEO resigns after $600,000 scandal

Under Ian Choudri, the authority used taxpayer dollars to fund first class flights and trips to nightclubs.

October 30 - Cal Matters

 A bridge stretches across the Missouri River at Chamberlain, South Dakota.

Want to study the Missouri River? Soon, you may need unanimous approval from 10 states

Legislation would require 10 governors’ permission to study or build projects moving water outside the basin.

October 30 - South Dakota Searchlight