SACRAMENTO — An independent study from the Berkeley Research Group (BRG) found that, without Proposition 22, the loss of app-based rideshare and delivery services would have devastating consequences for consumers, increasing rideshare costs between 25% and 100%, doubling wait times, and eliminating services altogether in many areas of California. Low income communities, communities of color and rural areas would be impacted the most.
BRG’s report found that without Proposition 22l, traditionally underserved communities would see rideshare prices double, app-based rideshare and delivery services will be limited to the most densely populated areas, and consumers across the state would experience higher prices and longer wait times:
Rideshare costs would increase for consumers by at least 25.9% and as much as 100% in some markets—meaning that a typical $15 ride across town would cost between $19 and $30.
Food and grocery delivery costs would increase by at least 35.2% and potentially double in some markets.
An increase in wait times and a decrease in reliability for customers—meaning an average wait time for rideshare could double, and food/grocery delivery of 40 minutes may double to 1 hour and 20 minutes or more.
A reduction of the customer base—meaning little or no services to most Californians living in rural or suburban areas of the state.
“Many people don’t remember what it was like before app-based rideshare and delivery companies arrived on the scene. Cabs often refused to pick up in Black and Brown neighborhoods. It cost an arm and a leg to get anywhere, and food delivery was almost nonexistent,” said Dr. Tecoy Porter, Chairman of the CA State National Action Network. “We need Prop 22 to protect the availability and affordability of these vital services, especially for underserved communities of color.”
Low-income communities and rural areas would be hit with the largest price increases
