California Governor Gavin Newsom recently delivered a perplexing blow to the state’s drivers for Uber and Lyft by endorsing their right to unionize. This move, while ostensibly empowering, may ironically push many towards the unemployment line.
In a press conference, Newsom characterized the unionization deal as a means to provide ride-hailing drivers with “a voice, to give them choice, give them dignity and a say about their future.” His earnest assertion struck a somewhat optimistic tone in the face of mounting skepticism.
Today, I signed legislation empowering 800,000 rideshare workers in California to unionize.
Our state is committed to giving working people a voice, a choice, dignity, and a role in shaping their future. pic.twitter.com/E5O57nelYH
— Governor Gavin Newsom (@CAgovernor) October 3, 2025
California has joined Massachusetts as the second state to authorize Uber and Lyft drivers to collectively bargain at an industry level for better wages and benefits, including health coverage. The agreement, crafted through discussions among Democratic lawmakers, SEIU union representatives, and industry stakeholders, culminated in Assembly Bill 1340, initiated by Assemblymembers Buffy Wicks and Marc Berman.
This legislation lays down the groundwork for app-based drivers to negotiate collectively for improved pay and benefits. However, it doesn’t take a crystal ball to perceive that this new measure could well lead many of the state’s 800,000 drivers into an even deeper financial quagmire.
Faced with intensifying pressures to become profitable, companies like Uber and Lyft have historically slashed driver wages, employing a race to the bottom strategy. The proliferation of ride-sharing has significantly altered compensation dynamics, especially for immigrants and workers seeking stable employment. Many seasoned drivers now reflect nostalgically on the past when earnings were substantial enough to sustain a living wage.
This unionization effort, although seemingly a step in the right direction, may inadvertently hasten the companies’ shift to autonomous vehicles—an alternative that eliminates the need for human drivers altogether.
With the rise of self-driving taxis, Newsom’s new legislation may unwittingly secure the future of a fully automated industry, rendering human drivers obsolete very soon. @ScottAdamsSays “Within 1 to 2 years, every Uber and Lyft driver will likely lose their job as they won’t be able to compete with autonomous taxis.”
— jay plemons (@jayplemons) October 4, 2025
Companies like Tesla and Waymo are already rolling out self-driving vehicles across California and other states, including Arizona and Texas. In a few short years, it’s plausible that the landscape of employment for Uber and Lyft drivers in California could be entirely transformed, leaving many without a bargaining chip.
