Ramona Prieto, Head of Public Policy at Uber, said in a press release that the tandem progress of AB 1340 and SB 371 marks a policy compromise that lowers costs for riders while creating stronger voices for drivers through a rare alignment of industry, labor, and lawmakers.
“Sacramento has come together around the need to make rideshare more affordable in California, and we’re encouraged to see these two bills advancing in tandem,” said Prieto. “Together, they represent a compromise that lowers costs for riders while creating stronger voices for drivers—demonstrating how industry, labor, and lawmakers can work together to deliver real solutions that reflect how people live, work, and move today.”
According to the San Francisco Chronicle, the August 29, 2025 announcement by Governor Gavin Newsom, Senate Pro Tem Mike McGuire, and Assembly Speaker Robert Rivas marks a major breakthrough in California’s gig economy policy. The leaders jointly endorsed AB 1340 and SB 371, describing them as twin bills that represent a “historic agreement” between organized labor and the rideshare industry. This deal follows years of labor strife and litigation after Proposition 22 carved out rideshare drivers from employee status.
As reported by CalMatters, AB 1340—sponsored by Assemblymembers Buffy Wicks and Marc Berman and backed by SEIU California—would grant rideshare drivers the right to collectively bargain over workplace issues while remaining independent contractors. The bill mandates that the Public Employment Relations Board (PERB) regulate driver organizations, requires quarterly sharing of driver contact lists with regulators, and sets rules to prevent retaliation or coercion by rideshare platforms. Labor advocates argue this could offer drivers more workplace protections without triggering the full costs of employment reclassification.
According to a report from AP News, SB 371—sponsored by Senator Christopher Cabaldon and backed by Uber and Lyft—seeks to reduce the state’s rideshare insurance coverage requirement for uninsured or underinsured motorists. Currently, California mandates $1 million in coverage; the bill proposes reducing that to $100,000 per person and $300,000 per incident. Uber argues that insurance expenses currently make up 30–35% of every fare and that this reform could significantly reduce rider costs and help sustain the platform’s financial viability.
As Politico reports, the AB 1340/SB 371 package could extend collective bargaining rights to more than 800,000 rideshare drivers in California—making it the largest private-sector labor expansion in state history. This follows years of legislative standoffs and court rulings involving gig classification laws like AB 5 (2019) and Prop 22 (2020). The deal reflects a rare convergence between Big Labor, Big Tech, and Democratic leadership, with the potential to reshape national discussions on gig work and unionization.
Prieto has served as Uber’s Head of Public Policy and Communications for the U.S. West since August 2021 and has worked in California public affairs at the company since 2019. Prior to joining Uber, she held senior roles in both government and the private sector, including as Policy Director for U.S. Senator Alex Padilla’s transition team and in public policy roles at Pacific Gas and Electric Company.
