CALIFORNIA—On Wednesday, January 13, transport company Lyft increased prices for customers in the state of California.
CJ Macklin, Senior Communications Manager for Lyft, told San Francisco News that the new fee “will be used to directly support the benefits that drivers won through Prop. 22., including guaranteed earnings, a healthcare subsidy, and medical and disability coverage.”
The “flat fee” is based on location and “will range from 30 cents to $1.50.”
The new fee comes more than two months after more than 11 million voters approved Proposition 22, which would prevent ride and delivery service drivers from being classified as state drivers. Uber and Lyft threatened to leave the state of California if the proposition failed.
Lyft’s price hike comes after Uber increased prices back in December, a month after Proposition 22 passed.
On November 4, the day after its approval, Lyft said on its website that the proposition redefined “what independent work looks like for drivers” and said it will “give drivers the new benefits they want and keep rideshare available for people around” the state of California.
New benefits include continued flexibility, guaranteed minimum earnings, an insurance coverage increase, and new healthcare benefits.
Macklin told San Francisco News that Proposition 22 gives drivers “historic new benefits” and said Lyft is working towards making these benefits “sustainable so that they can continue to best protect drivers.”
Macklin added that if the proposition failed, “the service would have been drastically impacted for riders.”
Lyft’s price hike comes the California Supreme Court was asked on January 12 to overturn Proposition 22 by plaintiffs, including the Service Employees International Union California State Council.