Uber, Lyft’s tally procedure project gets not-for-profit status for mailers, challengers weep nasty

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Revealed: The Secrets our Clients Used to Earn $3 Billion

Uber and Lyft have actually put countless dollars into their tally procedure project in California to keep chauffeurs categorized as independent professionals.


Angela Lang/CNET

Opponents of Proposition 22, a tally procedure sponsored by Uber, Lyft and other gig economy business in California, have actually submitted a problem with the United States Postal Service versus the project for utilizing not-for-profit status to send political mailers. They approximate the Yes on Proposition 22 project has actually conserved a minimum of $1.5 million by utilizing the not-for-profit postage rate for mailings, instead of utilizing the typical bulk rate.

A representative for the Yes project stated it’s been given not-for-profit status by the Internal Revenue Service and USPS which it prevails practice for project committees dealing with tally steps to form themselves as nonprofits.

“Yes on 22 is eligible for the appropriate nonprofit postage rates with the USPS, which we applied for and were granted by the US Postmaster,” a Yes project spokesperson stated in an e-mail. “The USPS has a long-term policy in place of allowing the ballot measure committee of a duly authorized nonprofit to mail under the nonprofit’s authorization.”

The problem comes throughout a heated fight over Proposition 22, which is sponsored by Uber, Lyft, DoorDash, Instacart and Postmates and intends to excuse the business from categorizing their employees as staff members. The 5 business have actually contributed almost $200 million to the tally procedure project, making it the most pricey in California history.

Opponents to the tally procedure state that with such large amounts of cash being invested, the gig economy business should not be getting a discount rate on USPS postage. 

“It’s outrageous but not surprising that the app companies that are going to the mat to keep shortchanging workers would shamelessly rip off the postal service,” Mike Roth, project representative for the No on Proposition 22 project, stated in a declaration. “This is just more evidence of the kind of greed we are dealing with from these companies.”

In the problem letter to the USPS, a legal representative for the No on Proposition 22 project declared the Yes project was “unlawfully” released a not-for-profit authorization. Under federal law, not-for-profit authorizations are given to “qualified political committees,” however the No project declares that does not use to the Yes project given that it’s not a committee of a political celebration.

Deep dive:  Inside Uber and Lyft’s battle over gig employee status

“Yes on 22 is a registered California political committee, but it is not a political party committee,” checks out the problem. “Because large amounts of mail are being sent out daily in violation of the Federal Statue, we request that you act immediately to revoke this permit.”

Mailers for other tally procedure projects in California, such as Proposition 15 and Proposition 23, have actually been utilizing basic bulk rate postage.

The USPS didn’t instantly return an ask for remark. 

Uber, Lyft and Postmates didn’t return ask for remark. DoorDash and Instacart referred CNET to the Yes on Proposition 22 project.

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