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Uber and Lyft drivers strike across the U.S.

Ride-hailing drivers expose financial unrest before Uber IPO
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Uber and Lyft drivers carry signs during a demonstration outside of Uber headquarters Wednesday, May 8, 2019, in San Francisco. Some drivers for ride-hailing giants Uber and Lyft turned off their apps to protest what they say are declining wages as both companies rake in billions of dollars from investors. Demonstrations in 10 U.S. cities took place Wednesday, including New York, Chicago, Los Angeles, San Francisco and Washington, D.C. The protests take place just before Uber becomes a publicly traded company Friday. (AP Photo/Eric Risberg)

The executives at Uber are working hard to design a future where the company earns billions of dollars by allowing riders to summon fully automated robotaxis.

Until then, they must rely on an army of human drivers 91裸聊视频 nearly 4 million across the globe 91裸聊视频 to keep the business humming. The challenge is to figure out how to make their drivers happy while also making money, and right now the company is losing on both fronts as it heads into its initial public offering on Friday 91裸聊视频 the largest technology IPO of the year.

Drivers complain about low wages and being classified as contract workers instead of employees, which cuts them off from the benefits that go with it.

Lyft, which beat Uber to the public market last month, is dealing with similar issues. On Wednesday, drivers for both companies participated in strikes across the country, pledging to turn off their apps for hours to call attention to their plight, although it91裸聊视频檚 unclear how many actually took part and the impact on customers appeared minimal.

91裸聊视频淭he drivers are the one who helped Uber to be $100 billion, nobody else, and the drivers are the ones who are suffering,91裸聊视频 said Inder Parmar, 54, an Uber driver who lives in a suburb of New York City. 91裸聊视频淯ber and Lyft, they figured out how to exploit the drivers, and that91裸聊视频檚 what they91裸聊视频檙e doing right now.91裸聊视频

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Uber is being challenged around the globe to treat its drivers as employees instead of contractors. Fighting those battles is expensive. What91裸聊视频檚 more, losing those battles and being forced to classify drivers as employees would exacerbate its financial difficulties.

91裸聊视频淭hat would be the nightmare scenario,91裸聊视频 said Dan Ives, managing director of equity research at Wedbush Securities. 91裸聊视频淭hat continues to probably be the biggest threat to the business models.91裸聊视频

Although both Uber and Lyft have been growing at impressive rates, they have also been consistently losing money. Lyft, with its 1.1 million drivers and 18.6 million active riders in more than 300 markets in the U.S. and Canada, lost nearly $3 billion since its 2012 inception. Uber, which boasts 3.9 million drivers for its ride-hailing and food delivery services in more than 700 cities and 63 countries worldwide, lost nearly $8 billion over a decade.

By continuing to treat drivers as independent contractors, Uber and Lyft avoid paying for health insurance, overtime or benefits such as workers compensation, said Shannon Liss-Riordan, partner at Lichten & Liss-Riordan, who has represented drivers in the employment classification cases.

91裸聊视频淭his is basically a big giveaway to these massively successful companies, often off the backs of the workers who are fueling their success,91裸聊视频 Liss-Riordan said.

Both Uber and Lyft say the development of autonomous vehicles will help reduce the expense the companies pay to drivers, but experts say that won91裸聊视频檛 happen anytime soon. Uber states in its IPO filing that there will be a long period of 91裸聊视频渉ybrid autonomy,91裸聊视频 where autonomous vehicles will be gradually introduced while drivers continue to serve most consumer demand. But it also acknowledges that this could lead to dissatisfaction as drivers watch themselves get replaced by robots.

For now, the strategy is to preserve drivers91裸聊视频 status as independent contractors, which Uber justifies by pointing to the fact that drivers get to choose whether, when and where to provide services, are free to work for competitors and provide their own vehicles.

Daniel Danker, head of Uber driver products, said he could not comment on the driver classification cases, but said Uber is constantly looking for ways to address drivers needs and in some markets gives drivers vacation pay.

Uber rolled out a suite of benefits for drivers last week, which includes discounts on gasoline and car repairs and tuition reimbursement for Arizona State University Online for qualified drivers who log a certain number of trips.

91裸聊视频淚91裸聊视频檓 not trying to diminish the importance of earnings, of course they91裸聊视频檙e important,91裸聊视频 Danker said. 91裸聊视频淏ut they are by no means the only part of the story. And I think we have an opportunity here to make good on a far more complete picture of what motivates drivers and how they want to be recognized for what they do.91裸聊视频

Drivers represent one of the largest expenses for ride-hailing companies. Customers have grown accustomed to the instant availability of rides and are only willing to wait a few minutes to get in a car.

At the same time, drivers also pose their own problems. Uber has been grappling with accusations of drivers sexually assaulting passengers and has introduced a number of safety features to combat that issue. Lyft, meanwhile, has been trying to distinguish itself as more trustworthy ride-hailing option.

There have been some success stories for drivers in their push for higher wages. New York City passed a law requiring that transportation networking companies pay them a minimum wage of $17.22 per hour after expenses, and other cities could follow suit.

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That made a difference to Donald Saunderson, a former social studies teacher who drives for both Uber and Lyft in New York City. Before the wage rule, Saunderson had to work 10 to 12 hours to make $300, but now he can make that money in seven or eight hours.

91裸聊视频淚t91裸聊视频檚 beautiful,91裸聊视频 Saunderson said. 91裸聊视频淚91裸聊视频檓 definitely making more money, there91裸聊视频檚 no doubt about it.91裸聊视频

Other drivers complain that they don91裸聊视频檛 think they91裸聊视频檙e making the minimum wage despite the rule. Parmer said his wages have declined over the last four years.

91裸聊视频淢y expenses have not been reduced by one penny, but my income has been reduced by more than 50%,91裸聊视频 he said.

Lyft said drivers91裸聊视频 hourly earnings have increased 7% over the last two years, and that over 75 per cent drive less than 10 hours a week to supplement existing jobs. They make $20 per hour on average before deducting vehicle-related expenses, Lyft said.

But drivers expect pay to get worse as Uber and Lyft face pressure from investors to cut costs. Nonetheless, the companies shouldn91裸聊视频檛 forget the workers who helped built their empire, said Bhairavi Desai, executive director of the New York Taxi Workers Alliance, which represents taxi and app-based drivers.

91裸聊视频淲e don91裸聊视频檛 want drivers to be drowned out by even more people that will have a stake in these companies91裸聊视频 profits,91裸聊视频 Desai said.

Cathy Bussewitz, The Associated Press

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