DoorDash Scores Victory With Prop 22 Ahead of Planned IPO

DoorDash Inc. scored a big victory in California on Election Day, when voters approved a measure that would allow the food delivery company to keep its workers classified as independent contractors.

The San Francisco-based startup, along with Uber Technologies Inc. and Lyft Inc., was the biggest funder of a record-setting $200 million campaign to pass Proposition 22. The win exempts the so-called gig economy businesses from a state labor law that would require them to hire the workers as employees and pay for certain benefits.

DoorDash Chief Executive Officer Tony Xu highlighted the fact that many delivery workers supported the measure. “This victory belongs to the tens of thousands of Dashers and small businesses who advocated so forcefully for this campaign, as well as the customers and the communities we serve,” he said in a blog post early Wednesday.