San Diego Drivers United has announced that Senate Bill 371 (SB 371) aims to increase earnings for rideshare drivers while assisting companies in reducing costs and maintaining affordable rides for the community.
According to San Diego Drivers United, SB 371 is part of a negotiated package with Assembly Bill 1340 (AB 1340) designed to rebalance California’s ride-hail market. The bill seeks to lower insurance mandates that companies claim inflate fares while also advancing a path for drivers to organize. The Governor and legislative leaders have framed SB 371 as an affordability measure, replacing a previous $1 million uninsured/underinsured motorist requirement with $60,000 per individual and $300,000 per accident—costs that had been passed through to riders. Proponents argue this right-sizes coverage, reduces platform expenses, and supports broader access to low-cost mobility across the state.
Analyses tied to the legislative deal report that insurance can account for up to 45% of California ride fares; SB 371 lowers required coverage to $60,000 per person and $300,000 per incident. Reports estimate hundreds of millions in company savings, with the Associated Press citing approximately $200 million for Lyft. By cutting a major cost driver while preserving core protections, backers contend the bill directly supports lower fares for consumers and better take-home earnings for drivers as platforms have more room to adjust rates and incentives.
The scope and beneficiaries are substantial: more than 800,000 California Uber and Lyft drivers gain collective bargaining rights under AB 1340. According to state statements, SB 371 is explicitly intended to “reduce the cost of providing rideshare services” and keep rides affordable. Local coverage notes that the combined package “lowers costs for riders while creating stronger voices for drivers,” underscoring the dual aim of affordability and worker empowerment.
San Diego Drivers United is a regional advocacy group focused on ride-hail policy, driver earnings, and rider affordability in Southern California. Through public statements, blogs, and analysis, the group engages local officials and the public on issues such as fare structures, insurance rules, and driver protections. Its materials highlight SB 371’s cost-reduction mechanics and argue that aligning insurance requirements with realistic risk profiles can help sustain affordable transportation while supporting driver livelihoods in San Diego and across California.
