Navigating the Gig Economy: Transportation Labor Challenges Facing California’s App-based Ridehailing and Courier Drivers

Given the dynamic landscape surrounding the classification of workers in California, it is important to consider how the existing legal and regulatory environment may impact app-based gig drivers, including transportation network companies (TNCs, also known as ridehailing) and courier network services (CNS). Using a multi-method approach, we conducted a literature review (n = 41 sources), expert interviews (n = 8), and case study analysis (n = 7) between October 2022 to May 2024 to better understand how California’s gig drivers are impacted by state legislation and regulation (i.e., Assembly Bill 5, Proposition 22, and Senate Bill 1014). The expert interviews found that gig drivers are concerned with fair pay, benefits, labor classification, and transparency from the app-based platforms on issues related to punitive actions (i.e., deactivations). Drivers also raised concerns about California’s Clean Miles Standard (also known as SB 1014), which requires 90 % of vehicle miles traveled be electric by 2030, due to the financial costs associated with acquiring and operating electric vehicles (EVs) and limited public charging availability. The seven case studies examine gig labor policies from other states and countries (e.g., policies that may help enhance driver working conditions, platform regulation, and facilitate the EV transition). Together, these methods explore the tension between sustaining an app-based gig driving platform and providing fair compensation and working conditions for gig drivers. The study finds that state and/or local policies establishing minimum pay for drivers and policies enhancing transparency and appeal processes for driver deactivations could help improve working conditions for gig drivers. Various state agencies, such as the California Public Utilities Commission, could support gig drivers through incentives for the purchase of EVs and installation of EV charging near their homes and driving locations.