The CEO of Lyft says that the company will save $ 200 million in insurance costs from the unionization agreement it has concluded with California legislators

“What we got in return was huge,” Risher said on stage on Monday at FortuneBrainstorm Tech conference in Park City, Utah. “Our insurance rates will drop and we will save about $ 200 million, which we will use drivers in terms of better salary for drivers.”

Risher’s comments occur shortly after an agreement that Lyft and Uber have concluded with the governor of California Gavin Newsom, as well as two other California legislators, who would allow driving drivers to syndicate and organize for a higher salary, benefits and certain workers’ protections. In return, California legislators have declared that they would support state legislation which would reduce the cost of insurance coverage that co-hail companies should pay.

Risher’s comments were the company’s first attempt to put a monetary figure on savings – with Risher believing that the company would save some $ 200 million in insurance payments.

The Uber and Lyft agreement with state regulators surprised some, in particular because Iber, Lyft and other companies had collectively spent some 200 million dollars a few years ago in order to push legislation that would classify drivers of driving in California as “independent entrepreneurs” and therefore limit the advantages they are able to receive in California.

During her interview on Monday, Risher pushed the idea that Lyft and the drivers had different interests.

“I think people believe that drivers and Lyft are on the other side of things,” said Risher. “Often, we are not. Often, when drivers earn more money, Lyft earns more money. Lyft earns more money, drivers earn more money. It is inextricably linked. ” He said that Lyft transmitted savings of reduced insurance costs to his drivers.

After the California agreement with Uber and Lyft, other states have progressed with similar attempts to allow workers to unionize. Massachusetts has also recently adopted a voting measure which would give drivers the right to organize, and Minnesota and Illinois would also have considered the same thing.

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