Uber Technologies (NYSE: UBER) and DoorDash (NYSE: DASH) are raising prices in California to pay for new driver benefits. The benefits will replace requirements that gig economy companies reclassify their drivers as employees, the result of a voter referendum earlier this year. The ride-sharing company said the cost of getting a ride could rise anywhere from $0.30 to $1.50 depending upon the city, while food delivery costs could rise between $1 and $2 per order. DoorDash said its deliveries would cost a small percentage more, but Instacart and Lyft (NASDAQ: LYFT) have yet to commit to raising prices. Image source: Getty Images. Better than the alternative Proposition 22 was strongly supported by gig economy drivers and companies, as well as the customers who use them, after Uber and Lyft threatened to either close down or severely limit their operations in the state if they had to reclassify their drivers as workers. The Competitive Enterprise Institute estimated the cost of the law the ballot initiative overturned would have raised prices and fares as much as 50% by imposing costs on companies that were 67% higher. Analysts estimated Uber, which generates around 9% of its revenue from the state, would see costs rise by approximately $500 million annually, while Lyft, which earns 14% of its revenue there, would see $290 million more in costs each year. The ballot measure was resoundingly approved, receiving 58% of the vote. The gig companies believe the California measure can be replicated in other states that are considering adopting laws like those that Prop 22 overturned. Beyond just ride-sharing and food delivery drivers, the new law applies to media publishers, trucking companies, and others that use freelancers and other, similar independent workers. 10 stocks we like better than Uber TechnologiesWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Uber Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Rich Duprey has no position in any of the stocks mentioned. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.Source