Daily Business Report-Aug. 17, 2020
Protesters carrying signs supporting AB-5, a new law that changed the employment classification for gig workers such as Uber and Lyft drivers. (Photo by Anne Wernikoff for CalMatters)
Uber, Lyft and why California’s
war over gig work is just beginning
By Lauren Hepler | CalMatters
A yearslong battle over how gig companies should treat the hundreds of thousands of Californians who find work through their apps finally came to a head last week. It also proved that even after high-profile protests and showdowns in Sacramento, the state is still far from figuring out what work will look like in a more tech-dependent world — and it’s testing the patience of Uber and Lyft, which are now threatening to temporarily close down in the state.
The latest clash started with a 34-page court order full of words like “nonsense,” “inconsistent” and “meritless,” where San Francisco Superior Court Judge Ethan Schulman on Monday rejected the ride-hailing giants’ arguments that they should not have to immediately comply with a new state law. The law, AB 5, in effect since January, requires companies in many industries to reclassify and pay contract workers as employees.
Lyft on Thursday filed a court notice that it will appeal the order. Uber also filed paperwork to halt the process, arguing that it would take “a year or more” to create processes to formally re-hire drivers. But if those efforts fail and they are forced to quickly change how they operate, the companies trying to stop the financial bleedingafter huge losses during the pandemic say they may be forced to cut “hundreds of thousands” of contract jobs. On Wednesday, both Uber and Lyft threatened to shut down California operations until November — just in time for an election where the companies, plus gig economy peers Instacart and DoorDash, want voters to exempt them from AB 5 and approve their own proposal for more limited driver benefits, Prop 22.
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Trump’s attack on the U.S. Postal Service
won’t affect California’s all-mail November election
CalMatters
California will likely be able to successfully hold an all-mail November election despite recent operational changes at the U.S. Postal Service and President Donald Trump’s Thursday assertion it would be impossible to do so without infusing more funding into the public mail delivery system — which the president said he is reluctant to do, CalMatters’ Ben Christopher reports.
Though the USPS changes may lead to postal delays and reduced mail capacity, California has workarounds: Newsom signed an order requiring ballots be accepted up to 17 days after Election Day (as long as they’re postmarked by that date), and voters can also deposit their ballots at polling locations or drop-off boxes. Some in-person voting locations will also be available.
Trump: “If we don’t make a deal, that means they (USPS) don’t get the money. That means they can’t have universal mail-in voting. They just can’t have it.”
Alex Sackler, lobbyist with the Coalition for a 21st Century Postal Service: “Without one additional dime, the Postal Service has both the capacity and the cash on hand to handle all the ballots that will be put in the mail this year.”
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BAE wins potential $118 million Navy contract
for USS Preble ship maintenance services
GovCon Wire
BAE Systems’ ship repair business in San Diego has won a potential $117.8 million U.S. Navy contract to help the Chief of Naval Operations prepare for a scheduled depot maintenance of the Arleigh Burke-class guided missile destroyer USS Preble.
The company-run shipyard will perform repair, alteration and upgrade work on the vessel as part of the firm-fixed-price contract, the Department of Defense said.
Naval Sea Systems Command received two proposals for the project, which is expected to conclude in February 2022, and will obligate $103.6 million at the time of award.
USS Preble will undergo modernization as part of the branch’s efforts to ensure service life of DDG-51 class ships.
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Mission Valley startup GoSite raises $16 million
to help small businesses go online amid COVID-19
Local software startup GoSite, which helps small businesses set up online presence, recently raised $16 million. The seven-year-old company already employs 150 full-time workers and 250 total in San Diego, and plans to double its staff over the next 12-18 months.
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Judge awards Water Authority $44 million
for cases against Metropolitan Water District
A Superior Court judge has awarded the San Diego County Water Authority $44,373,872.29 in a final judgment for two cases covering rates paid by San Diego County ratepayers during calendar years 2011-2014. The award included $28,678,190.90 in damages for the Metropolitan Water District of Southern California’s breach of contract for the four years at issue, plus pre- and post-judgment interest.
The Water Authority has worked for more than a decade to resolve disputes with MWD in cases filed from 2010-2018. In February, the Water Authority’s Board of Directors voted to dismiss certain issues from the litigation after securing more than $350 million in local project subsidy benefits for the San Diego region, beginning late last year.
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NIH awards 3 San Diego companies Rapid Acceleration
of Diagnostics contracts for COVID-19 tests
National Institutes of Health (NIH)’s Rapid Acceleration of Diagnostics initiative awarded contracts to San Diego’s Mesa Biotech, Quidel, and Helix to support manufacturing and scaling of COVID-19 tests. Through contracts with seven biomedical diagnostic companies, NIH aims to increase the number, type, and availability of tests by millions per week as early as September 2020.
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112 San Diego companies make Inc. 5000 list
One hundred twelve San Diego companies made the 2020 Inc. 5000 list of fastest growing companies in the country; among them are Shield AI, LionDesk, Gateway Genomics, and Blenders Eyewear. In total, San Diego companies contributed $3.9 billion in revenue and added 5,939 jobs.
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Researcher John Craig Venter awarded the 2020
Edogawa-Niche Prize for human genome work
The Edogawa NICHE Prize for the year 2020 has been awarded to Dr. John Craig Venter for his contribution to research and development pertaining to the human genome. This honor reflects Venter’s lifetime accomplishments in the power of the genomics and specifically in the identification of the human genome which has radically transformed health care according to Prof. Gary Levy, chair of the Edogawa NICHE awards committee.
Venter has founded Celera Genomics, The Institute of Genomic Research (TIGR), J.Craig Venter Institute (JCVI) and co-founded Human Longevity Inc and Synthetic Genomics.
The awarding of the Edogawa NICHE prize to Venter is the most recent in a string of honors including United States Medal of Science (2008), Gardner Foundation International Award (2002), Paul Erlich and Ludwig Darmstaedter Prize (2001) and the King Faisal International Award of Science (2001). He was listed on Time Magazine’s list of the most influential people in the world.
The award ceremony date will be announced later.
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Eric Bost is relocating to North County to join
the team at Jeune et Jolie as executive chef
A veteran of some of the most prestigious restaurants around the world and most recently of his own critically-acclaimed solo project, auburn in Los Angeles, Chef Eric Bost has set his sights on Carlsbad and the 2,000-square-foot ode to nouvelle French cuisine, Jeune et Jolie.
Named one of Esquire’s Best New Restaurants in America 2019, Jeune of Jolie, whose name translates to “young and beautiful,” is the second venture from owner John Resnick whose first restaurant, Campfire, received a Michelin Bib Gourmand in 2019.
A Culinary Institute of America and business school grad, Bost has worked his way through some of the world’s best restaurants, including Alain Ducasse au Plaza Athénée and Les Ambassadeurs at the Hôtel de Crillon. He was Chef de Cuisine at Restaurant Guy Savoy in Las Vegas when they received two Michelin Stars in 2008, and was soon afterwards appointed executive chef.
With the opening of Guy Savoy Singapore in 2010, Bost established a restaurant consistently voted amongst the best in the country. In 2016, he quickly became immersed in the LA’s culinary landscape as executive chef of Los Angeles’ République.
In early 2019, Bost opened Melrose Avenue’s auburn restaurant as chef-owner. With auburn, he created a restaurant that upheld the tenets of his culinary foundation while paying homage to the city’s uninhibited identity.
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Steve Games named a Coldwell Banker West
partner, and president of new luxury division
Coldwell Banker West announced that Steve Games has joined the organization as a partner, and the president of the new Coldwell Banker WestGlobal Luxury Division. Games will be focused on expanding the ranks within the company’s nearly 1,000 real estate professionals who are focused on the luxury market and operate out of 14 offices throughout San Diego County.
Games began his career in San Diego County and Southern California some 45 years ago. Coldwell Banker was one of the first places he worked. His career includes a reputation as a key player in growing residential real estate firms to reign at the top of the industry in Southern California, one of which he grew to be the largest and most prominent in the United States, with more than 5,000 agents.
“I truly feel that I am joining the best leadership team ever assembled during the 40+ years of my real estate career,” said Games. “I started with Coldwell Banker and now feel like I am coming home. They have the same heart for real estate that I do, and collectively, we are going to do what I believe the industry is crying out for right now and answer the needs of the most discriminating buyer who wants to find a place to call home in San Diego.”
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S.D. Women’s Week Leadership Conference Goes Global
New virtual format with no boundaries features Daymond John, Linda Cureton, Ed Smart, Amy Trask
San Diego Women’s Week, celebrating 11 years of inspiring, empowering and connecting women is now virtual with leadership events for all ages and professions. Attendees enjoy virtual networking, keynote speakers, panel discussions, and more, all wrapped around creative solutions to everyday issues affecting leaders in the workplace and in their daily lives.
WHEN: Wednesday, Aug. 26 – Friday, Aug. 28, 2020
WHO: Keynotes for 2020 Leadership conference include:
- Daymond John from Shark Tank: Powershift, Transform Any Situation, Close Any Deal, and Achieve Any Outcome.
- Linda Cureton, Former CIO – NASA: Managing and Leading in a Tough Environment.
- Ed Smart, Father of Elizabeth Smart: Two Miracles, and Standing up for Yourself.
- Amy Trask, Former NFL Team Executive – Los Angeles Raiders: Leadership Vulnerabilities.
WHERE: Wednesday – Virtual Women and Wine 6-7:30 p.m.
Friday – Virtual Leadership Conference 8:30 a.m. – 6:30 p.m.
Click here for complete list of speakers and additional details.
