California's Uber-driver law hints at Go-Jek, Grab and Didi dominoes

Treating drivers as employees will alter cost calculations for Asia's booming gig economy

20190920 Grab GoJek

Ride-hailing companies' business model -- a poster child of the gig economy -- is increasingly at the mercy of government regulations. (Photo by Dimas Ardian)

HIROMI SATO, TAKESHI SHIRAISHI and ALEX FANG, Nikkei Staff Writers

PALO ALTO, U.S./NEW YORK -- Asian ride-hailing startups Grab, Go-Jek and Didi-Chuxing are watching nervously for any signs of a ripple effect on the gig economy from a newly passed California law that requires companies like Uber and Lyft to treat drivers as employees, eligible for benefits and wage protections which could be costly.

Under the new legislation, signed Wednesday by Gov. Gavin Newsom, independent contractors are limited to those who have established an independent trade or business, whose work does not form part of a company's core business, and whose job is not under the direct control of the hiring company.

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