The Union Threat to Uber and Lyft’s Business Models Is Real

Uber Technologies has overcome taxi driver protests, irate government officials, and the occasional self-made controversy. But the next fight for the ride-hailing company and rival Lyft may be with a modern-day Jimmy Hoffa. Seattle became the first U.S. city to pass collective bargaining legislation on Monday. Unions pose a new kind of threat to Uber and Lyft's businesses, which connect riders with freelance drivers through a smartphone application. While the companies have been facing legal battles around the U.S. to reclassify drivers as employees and offer benefits, the new Seattle law bypassed that issue in favor of a focus on allowing them to organize into a union, giving drivers more weight in negotiations. Many roadblocks are still ahead for a possible drivers union, including getting votes from more than half of active drivers, appointing a representative, and overcoming any legal challenges, but if successful, it could have a major impact, according to drivers, econ