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2019 Lyft and Uber drivers' strikes

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2019 Lyft and Uber drivers' strikes
DateMarch 25, 2019 and May 8, 2019
Location
United States (
)
Caused byLow pay, cut wages, no shareholding opportunities, no benefits
MethodsDemonstrations, internet activism, walkout
Resulted inArbitration settlement between drivers and Uber[1]
Lead figures

Jeff Barrera
Mark Serafin[2]
Mike Starr[2]
Terri Beilke[3]
Nicole Moore[3]

A series of general strikes was coordinated on March 25, 2019 by Lyft and Uber drivers in Los Angeles, California, United States. The strikes aimed to protest low wages, long hours, working conditions, and lack of benefits. The event was planned following Lyft's initial public offering. A second strike took place on May 8, 2019 in anticipation of Uber's initial public offering. The strike took place in several major cities across the United States.

Background

Both Lyft and Uber operate as transportation network companies that were founded as peer-to-peer ridesharing apps. Drivers, serve as independent contracts to Uber and Lyft and provide rides to individuals, much akin to a taxicab company. Users are able to request or drive for both companies by downloading a smartphone app. Drivers are required to go through an online training or an in-person training to make sure they are properly licensed and have a vehicle that is adequate for the company's standards. Drivers then link to a banking account so that Uber and Lyft can pay drivers for their service. A certain proportion of the ride fee goes to company for administrative support while another goes to the driver for providing the trip.[citation needed]

In addition, both companies offer various transportation services beyond peer-to-peer ridesharing. Uber offers food delivery service via UberEats, and in select cities, Lyft offers scooter sharing (similar to Lime and Bird).[citation needed]

Both companies, while having multi-billion dollar investments have been perpetually losing money, with the goal of investors not to make money, but to capture the market share of transportation services, particularly as a replacement to personal automobile use and mass transportation use. The launch of Lyft's initial public offering (IPO) and an Uber drivers' pay cut in March 2019 led to the first strike in Los Angeles.[4]

The planned strikes came in response to Lyft's decision to go public as a for-profit corporation, while Uber is expected to follow suit. The rationale is that most if not all of Uber and Lyft's profits are income come through the way of drivers who work for low wages and no benefits, rather than executives who manage infrastructure.[5]

Strikes

The first strike was held in Los Angeles on March 25, 2019,[6] the day Lyft went public and following a pay-cut announcement from Uber.[7][8] This has prompted both companies to announced financial allocations for driver bonuses, which the Rideshare Drivers United union in Los Angeles says is inadequate, and still only amounts to a pay of $8.55 per hour.[9]

Since then a second strike was planned for one full day on May 8, 2019.[9] The May 8 date was chosen as it coincides with Uber's IPO, which is estimated to raise the company $9 billion.[10] In addition to Los Angeles, drivers went on strike in Chicago, Boston, Los Angeles, Minneapolis, Philadelphia, San Diego, San Francisco, and Washington, D.C..[11]

Demands

In Los Angeles, Uber and Lyft drivers demanded that the companies pay their drivers a base minimum wage of $27.86 an hour, so that pay after expenses, such as gas and toll roads, would be at least $17.22, allowing drivers to keep up with the rising cost of living in the city.[9] Further demands include overtime pay, and healthcare benefits.[12][13]

In Philadelphia, the Drivers' Union and the city's Industrial Workers of the World chapter demanded an 80/20 fare split, with drivers making 80 percent of the ridesharing profits, up from a 30/70 split. Drivers also demanded protection through local oversight in which drivers are elected to a hearing board to Uber and Lyft. Finally, Philadelphia drivers demanded both companies invest in public education campaigns for riders before instituting any new background check policies.[14]

Reactions

In Philadelphia, the city's driver's union and the local chapter of the Industrial Workers of the World showed solidarity and promoted "Uber National Day of Action".[15]

On May 9, 2019 the day before Uber's initial public offering and the day following the second general strike, the company announced that it reached settlements with a majority of the 60,000 drivers who filed arbitration demands over their employment status. The company said the settlement cost the company between $146 million and $170 million. In anticipation of the settlement, Uber allocated $132 million.[1]

References

  1. ^ a b Isidore, Chris (May 9, 2019). "Uber settles disputes with thousands of drivers ahead of its IPO". CNN. Retrieved May 9, 2019.
  2. ^ a b "Members - PRLAINC". Philadelphia Limo Association. Retrieved April 30, 2019.
  3. ^ a b Stallworth, Leo (January 30, 2019). "Rideshare drivers hoping to unionize, force companies to improve pay". KABC-TV. Retrieved May 1, 2019.
  4. ^ Martin, Rachel (March 29, 2019). "Uber And Lyft Drivers Strike In California". NPR. Retrieved April 30, 2019.
  5. ^ Karlis, Nicole (April 25, 2019). "Uber drivers plan to strike next week in anticipation of IPO". Salon. Retrieved April 30, 2019.
  6. ^ Holder, Sarah. "Why L.A.'s Ride-Hail Drivers Went on Strike". Citylab. Emerson Collective. Retrieved May 1, 2019.
  7. ^ Burns, Janet (March 25, 2019). "Uber And Lyft Drivers Strike In LA After Yet Another Uber Pay Cut". Forbes. Retrieved April 30, 2019.
  8. ^ Hawkins, Andrew J. (March 29, 2019). "Lyft Drivers Strike as the Money-losing Company Goes Public". The Verge. Vox Media. Retrieved April 30, 2019.
  9. ^ a b c Gibson, Kate (April 25, 2019). "Uber and Lyft drivers plan 24-hour strike to protest pay". CBS. Retrieved April 30, 2019.
  10. ^ Rodino-Colocino, Michelle. "Uber's $9 billion IPO rests on drivers' 80-plus hour workweeks and a lot of waiting". The Conversation. The Conversation Trust. Retrieved May 1, 2019.
  11. ^ Homan, Nate. "Philly Uber, Lyft drivers join nationwide protest as rideshares go public". Metro. Metro International. Retrieved May 1, 2019.
  12. ^ Chen, Ted; Kesslen, Ben (March 25, 2019). "Uber and Lyft drivers in Los Angeles strike over pay, working conditions". NBC. Retrieved April 30, 2019.
  13. ^ Doctorow, Cory. "Uber drivers across America are going on strike -- UPDATED". Boing Boing. Happy Mutants. Retrieved April 30, 2019.
  14. ^ "Driver demands to Uber and state legislators". Philadelphia Drivers' Union. April 24, 2019. Retrieved April 30, 2019.
  15. ^ "Philadelphia Drivers' Union April 24 at 9:48 AM · Driver demands to Uber and state legislators:".
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