03:27 PM EDT, 08/29/2025 (MT Newswires) -- Uber Technologies ( UBER ) and Lyft ( LYFT ) have reached a deal with California lawmakers that would pave the way for the unionization of tens of thousands of rideshare workers in the state, Governor Gavin Newsom said on Friday.

California Governor Newsom, along with Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas, announced support on an assembly bill 1340 that established a legal framework for California's over 800,000 rideshare drivers to join a union and negotiate for better wages, benefits, and protections.

Additionally, the lawmakers also supported the senate bill 371 that will reduce the cost of providing rideshare services for Californians and remove the $1 million in accident coverage requirement for rideshare drivers.

Shares of Uber ( UBER ) were down about 3%, while Lyft ( LYFT ) shares were up nearly 1% in recent Friday trading.

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