The reason we have a representative democracy is because sometimes legislators can make decisions that might be different from the typical voter who has not spent extensive time thinking about the issue.
> such that a small number of people wield disproportionate influence and drive the legislature against what the people want
Much better to have Uber wield its disproportionate influence to display push notifications telling me to vote for Prop 22 every day leading up to the election.
Drivers can't be on-the-clock for two employers at the same time. So drivers who use both Uber and Lyft would have to choose. That means the customers outside of major urban centers would be less likely to find a driver nearby, because they may be looking in Uber and the driver is on-the-clock with Lyft. It seems like the effect would end up being monopolistic because the network effects would be even stronger than they are now.
That would be compounded by the lack of drivers. Market stickiness of the employment relationship would drive the equilibrium of drivers down, wait times up, prices up, and riders down.
Mothers Against Drunk Driving endorsed Prop 22. If the state Assembly didn't see that one coming, they really screwed up.