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CA ballot measure that keeps gig workers as independent contractors is projected to pass

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Uber, Lyft, Instacart, DoorDash — the major backers of California’s Proposition 22 — are getting their way. The proposition, which will keep gig workers classified as independent contractors, is projected to pass. The Associated Press called the race with 67% of precincts partially reporting.

At the time of publication, 58.2% of voters (more than 6.3 million people) voted for Prop 22, while 41.5% of voters (about 4.5 million people) voted against it.

The ballot measure will implement an earnings guarantee of at least 120% of minimum wage while on the job, 30 cents per engaged miles for expenses, a healthcare stipend, occupational accident insurance for on-the-job injuries, protection against discrimination and sexual harassment, and automobile accident and liability insurance. It’s worth noting that those earnings guarantees and reimbursement for expenses only reflect a driver’s engaged time, and does not account for the time spent in between rides or deliveries.

Proponents of Prop 22 claimed their win late Tuesday night when about 57% of the votes were accounted for. In an email to drivers tonight, Uber CEO Dara Khosrowshahi notified them of the news.

“With this vote, drivers and delivery people will get what so many of you have been asking for: access to benefits and protections, while maintaining the flexibility and independence you want and deserve,” Khosrowshahi wrote. “The future of independent work is more secure because so many drivers like you spoke up and made your voice heard—and voters across the state listened.”

Uber said it will be in touch over the next few weeks with additional details regarding how to enroll in the new offerings like occupational accident insurance and healthcare subsidies. Meanwhile, some opponents of the measure conceded.

“We’re disappointed in tonight’s outcome, especially because this campaign’s success is based on lies and fear-mongering,” Gig Workers Collective wrote in a blog post. “Companies shouldn’t be able to buy elections. But we’re still dedicated to our cause and ready to continue our fight.”

The folks over at Gig Workers Rising also said the fight is far from over.

“This battle is but a stepping stone towards our continued fight to get gig workers the rights, benefits, and dignified working conditions they deserve,” Gig Workers Rising said in a statement.

Prop 22 was primarily backed by Uber, Lyft, DoorDash and Postmates . Last week, DoorDash put in an additional $3.75 million into the Yes on 22 campaign, according to a late contribution filing. Then, on Monday, Uber put in an additional $1 million. That influx of cash brought Yes on 22’s total contributions to around $205 million. All that funding makes Proposition 22 the most expensive ballot measure in California since 1999.

On the other side, major donors in opposition of Prop 22 included Service Employees International Union, United Food & Commercial Workers and International Brotherhood of Teamsters.

“The reality is that, you know, it establishes a dangerous precedent to allow companies to write their own labor laws,” Vanessa Bain, a gig worker and organizer at Gig Workers Collective, recently told TechCrunch. “This policy was created to unilaterally benefit companies at the detriment of workers.”

The creation of Prop 22 was a direct response to the legalization of AB-5, the gig worker bill that makes it harder for the likes of Uber, Lyft, DoorDash and other gig economy companies to classify their workers as 1099 independent contractors.

AB-5 helps to ensure gig economy workers are entitled to minimum wage, workers’ compensation and other benefits by requiring employers to apply the ABC test. According to the ABC test, in order for a hiring entity to legally classify a worker as an independent contractor, it must prove the worker is free from the control and direction of the hiring entity, performs work outside the scope of the entity’s business and is regularly engaged in work of some independently established trade or other similar business.

Currently, Uber and Lyft are in the midst of a lawsuit regarding AB-5 brought forth in May by California Attorney General Xavier Becerra, along with city attorneys from Los Angeles, San Diego and San Francisco. They argued Uber and Lyft gain an unfair and unlawful competitive advantage by misclassifying workers as independent contractors. Then, in June, the plaintiffs filed a preliminary injunction seeking the court to force Uber and Lyft to reclassify their drivers.

In August, a judge granted the preliminary injunction. Uber and Lyft appealed the decision, but the appeals court last month affirmed the decision from the lower court. However, the decision will be stayed for 30 days after the court issues the remittitur, which the court has yet to do. Meanwhile, both Uber and Lyft previously said they were looking at their appeal options.

Throughout the case, Uber and Lyft have argued that reclassifying their drivers as employees would cause irreparable harm to the companies. In the ruling last month, the judge said neither company would suffer any “grave or irreparable harm by being prohibited from violating the law” and that their respective financial burdens “do not rise to the level of irreparable harm.”

But now that Prop 22 is projected to pass, this lawsuit has far less legal ground to stand on. It’s also worth noting that Uber has previously said it may pursue similar legislation in other states.

The California Secretary of State began releasing partial election results from the state’s 58 counties at 8 p.m. PT. However, do not expect a final count tonight, or even tomorrow. That’s partly due to the fact that California accepts absentee ballots postmarked no later than Nov. 3, 2020. Meanwhile, county elections officials have until Dec. 1, 2020 to report final results.

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Teardown of “Dishy McFlatface,” the SpaceX Starlink user terminal

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The outer part of

Enlarge / Ken Keiter gets ready to tear apart the SpaceX Starlink user terminal, “Dishy McFlatface.” (credit: Ken Keiter)

Engineer Ken Keiter recently came into possession of one SpaceX Starlink user terminal, the satellite dish that SpaceX nicknamed “Dishy McFlatface.” But instead of plugging it in and getting Internet access from SpaceX’s low Earth orbit (LEO) satellites, Keiter decided to take Dishy apart to see what’s inside.

The teardown process destroyed portions of the device. “I would love to actually test out the [Starlink] service and clearly I didn’t get a chance to, as this went a little bit further than I was intending,” Keiter said toward the end of the 55-minute teardown video he posted on YouTube last week.

Keiter, who lives in Portland, Oregon, was impressed by the Starlink team’s work. “It’s rare to see something of this complexity in a consumer product,” he said in reference to the device’s printed circuit board (PCB), which he measured at 19.75″ by 21.5″.

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Salesforce applies AI to workflow with Einstein Automate

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While Salesforce made a big splash yesterday with the announcement that it’s buying Slack for $27.7 billion, it’s not the only thing going on for the CRM giant this week. In fact Dreamforce, the company’s customer extravaganza is also on the docket. While it is virtual this year, there are still product announcements aplenty and today the company announced Einstein Automate, a new AI-fueled set of workflow solutions.

Sarah Franklin, EVP & GM of Platform, Trailhead and AppExchange at Salesforce says that she is seeing companies facing a digital imperative to automate processes as things move ever more quickly online, being driven there even faster by the pandemic. “With Einstein Automate, everyone can change the speed of work and be more productive through intelligent workflow automation,” she said in a statement.

Brent Leary, principal analyst at CRM Essentials says that combined these tools are designed to help customers get to work more quickly. “It’s not only about identifying the insight, it’s about making it easier to leverage it at the the right time. And this should make it easier for users to do it without spending more time and effort,” Leary told TechCrunch.

Einstein is the commercial name given to Salesforce’s artificial intelligence platform that touches every aspect of the company’s product line, bringing automation to many tasks and making it easier to find the most valuable information on customers, which is often buried in an avalanche of data.

Einstein Automate encompasses several products designed to improve workflows inside organizations. For starters, the company has created Flow Orchestrator, a tool that uses a low-code, drag and drop approach for building workflows, but it doesn’t stop there. It also relies on AI to provide help suggest logical next steps to speed up workflow creation.

Salesforce is also bringing Mulesoft, the integration company it bought for $6.5 billion in 2018 into the mix. Instead of processes like a mortgage approval workflow, the Mulesoft piece lets IT build complex integrations between applications across the enterprise, and the Salesforce family of products more easily.

To make it easier to build these workflows, Salesforce is announcing the Einstein Automate collection page available in AppExchange, the company’s application marketplace. The collection includes over 700 pre-built connectors so customers can grab and go as they build these workflows, and finally it’s updating the OmniStudio, their platform for generating customer experiences. As Salesforce describes it, “Included in OmniStudio is a suite of resources and no-code tools, including pre-built guided experiences, templates and more, allowing users to deploy digital-first experiences like licensing and permit applications quickly and with ease. ”

Per usual with Salesforce Dreamforce announcements, the Flow Orchestrator being announced today won’t be available in beta until next summer. The Mulesoft component will be available in early 2021, but the OmniStudio updates and the Einstein connections collection are available today.

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Virta Health’s behavioral diabetes treatment service is now worth over $1 billion

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A new $65 million investment led by the growth capital and public investment arm of Sequoia Capital will give Virta Health, a developer of a behavioral-focused diabetes treatment, a valuation of over $1 billion.

Virta’s approach, which uses a combination of approaches to change diet and exercise to reverse the presence of type 2 diabetes and other chronic metabolic conditions, has shown clinical success and attracted 100 health care payers to endorse the company’s treatments.

“We partnered with Virta for their ability to deliver unmatched health improvement and cost savings—two clear differentiators from other offerings on the market,” said William Ashmore, CEO of the State Employees’ Insurance Board of Alabama, in a statement. “Especially amid the COVID-19 pandemic, it’s vital that we provide our members the life-changing results Virta is known for delivering, through expert, virtual care delivered right to their home.”

The company said it would use the funding to expand sales and marketing efforts for its services as well as expand its research and development into other non-pharmaceutical therapies for metabolic conditions.

The financing came from Sequoia Capital Global Equities and Caffeinated Capital and brings the company’s total funding to over $230 million and gives it a $1.1 billion valuation, according to a statement.

Alongside Sequoia Capital Global Equities, Caffeinated Capital participated in the round, which brings total funding to more than $230 million and values Virta Health at over $1.1 billion.

Diabetes has long been an attractive condition for startups and has been the first target that companies focused on behavior changes to influence metabolic conditions aim to address. The reason why there are so many diabetes-focused businesses is because of the prevalence of the disease in the U.S. Almost half of adults in the U.S. suffer from obesity, pre-diabetes, or type 2 diabetes and the disease kills thirty people every hour. Diabetes also doubles the risk of death from COVID-19 infections.

Beyond the risks, the costs of treatment are skyrocketing. According to data from the American Diabetes Association released in March 2018, the total costs of treating diagnosed diabetes have risen to $327 billion in 2017 from $245 billion in 2012, when the cost was last examined.

“Given the scope of the metabolic crisis in the U.S. and globally, it cannot be understated how game-changing Virta’s results and care delivery are,” said Patrick Fu, managing partner at Sequoia Capital Global Equities, in a statement. “Virta’s technology-driven, non-pharmaceutical approach has fundamentally changed how diabetes is cared for, and our collective belief in what is possible for population health improvement. This is the future of chronic disease care.”

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