Governor Gavin Newsom has signed a last-minute legislative agreement between Uber Technologies Inc (NYSE:UBER) and California trial attorneys, thereby averting a potential ballot measure showdown.
The agreement, embodied in SB 623, introduces new safety requirements for ride-hailing companies while tightening rules on medical lien practices that Uber says inflate car crash lawsuit payouts and reduce victims’ settlements.
Although Uber initially sought stricter limits, the agreement does not impose firm caps on attorneys’ fees in car crash lawsuits. Following Gov. Gavin Newsom’s signature, both Uber and the Consumer Attorneys of California agreed to withdraw their competing November ballot initiatives.
This agreement comes after a months-long TV advertising battle between the two groups, with combined spending exceeding $50 million. As part of the agreement, Uber will enhance driver background checks and adopt additional safety standards, which trial attorneys say could help prevent sexual assaults and other misconduct.
Supporters say the deal will prevent private equity firms from profiting off medical debt tied to car crash victims. The California Assembly and Senate overwhelmingly approved the bill before the deadline to remove competing ballot initiatives from the November election.
Uber’s Shift Beyond Drivers
The agreement follows a series of legal battles faced by Uber. Earlier in June, the ride-hailing giant sued New York City over a driver protection law. In a federal court filing, the company argued that New York City’s Local Law 52 of 2026 would harm its brand, erode customer trust, and increase safety risks. The law, set to take effect on July 28, allows drivers to be deactivated for offenses including account sharing, fraud, violence, sexual harassment or assault, and discrimination.
Meanwhile, Uber CEO Dara Khosrowshahi said the company is evolving from a ride-hailing platform reliant on human drivers into an open marketplace that combines gig workers with third-party autonomous vehicle fleets. Rather than building its own self-driving cars, Uber is pursuing a multi-billion-dollar strategy to integrate robotaxis from multiple automakers and technology partners.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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