California’s rideshare deal is a warning for entrepreneurs

Ridesharing has provided innumerable benefits to California workers and consumers. Until Uber and Lyft arrived, ride-seekers were reliant on outmoded taxicab operations. For riders, that meant calling 800 numbers or standing in the street to flag a cab. Cars often were grimy. Drivers were stuck paying off the massive costs of medallions —the inflated fees cab companies paid for a permit.

Now, rideshare drivers—the vast majority of whom perform this work on a part-time basis —can choose their own hours. Consumers can easily hail rides from their phones. But unions didn’t like the set up and they enlisted the help of Democratic lawmakers to squelch this burgeoning industry.

The latest news is that Gov. Gavin Newsom, the Legislature and SEIU have muscled Uber and Lyft into accepting a