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"Uber, Lyft, and Metro Nashville Airport Authority are engaging in an inappropriate and malicious alliance to destroy dozens of livelihoods," said the Tennessee Drivers Union.
A Tennessee union announced Monday that 34 Uber and Lyft drivers received messages "informing them that they had been permanently banned" from working at Nashville's airport after joining scores of workers for a peaceful caravan there last month to support a state bill that would impact the companies.
The Tennessee Drivers Union (TDU) said in a statement that some participants, "including those in the passenger's seat not driving," were banned from providing rides at Nashville International Airport following the February 14 action, during which "participating Uber and Lyft drivers had their apps turned off."
In a message to one Uber driver obtained by Common Dreams, the company said that "Nashville International Airport (BNA) notified us that you conducted a pickup on the arrivals level of the terminal. Please note that all pickups must occur in the Uber-designated zone."
"Due to the nature of the incident, the airport is restricting certain driver-partners from accepting rides or dropping passengers off at BNA permanently, pursuant to the terms of Uber's agreement with the airport," Uber continued. "Your account appeared on the list. For that reason, your account has been permanently blocked from operating at BNA. Contact the airport for more information."
A message to a Lyft driver similarly said that "it has been reported that you were conduct detrimental to the orderly operation of the airport. That being said, at the request of the airport, you are prohibited from operating on BNA airport property indefinitely."
"To prevent future suspensions, carefully review the BNA rules and regulations," Lyft added. "Please note, citations may be given if you operate on BNA property during your suspension, and you will be responsible for paying them."
Lyft and Uber have not responded to Common Dreams' requests for comment on the bans, which come as working people face high costs and a billionaire-led assault on the federal government.
TDU said Monday that "Uber, Lyft, and Metro Nashville Airport Authority are engaging in an inappropriate and malicious alliance to destroy dozens of livelihoods. The airport is one of the only opportunities for ride-share drivers to make barely above minimum wage."
"This is an attack against dozens of workers, their families, and their communities," the union continued, noting the millions of dollars in fees the airport gets from drivers and Metro Nashville Airport Authority CEO Doug Kreulen's $600,000 salary.
As Common Dreamsreported last year, TDU has sounded the alarm about working conditions for drivers at BNA. Union members kicked off Labor Day weekend in 2024 with a strike to draw attention to demands including a cap on the number of ride-share drivers in the area, an expansion of their airport lot, and clean, working bathrooms on-site.
TDU said Monday that "this retaliation isn't a mistake," arguing that "Uber and Lyft are threatened" by Tennessee House Bill 879/Senate Bill 818, introduced last month by state Rep. Rush Bricken (R-47) and Sen. Joey Hensley (R-28).
The bill text begins by highlighting that "Tennessee is the only state in the Southeast that allows out-of-state ride-hail drivers to operate within the state, while Tennessee ride-hail drivers may not work in surrounding states."
"Tennesseans who live and work in our communities, contributing directly to our local economy, struggle to compete with an oversaturated market of out-of-state drivers," the legislation explains, calling for "a basic licensing regime."
The bill would require ride-hail drivers operating in the state to have a "transportation network license," which would require a Tennessee driver's license, or proof of residency in DeSoto County, Mississippi, or Crittenden County, Arkansas.
Companies that allow drivers to provide rides without a Tennessee-issued transportation network license would be hit with a $1,000 penalty per violation and could ultimately be banned from operating in the state.
A new study found that after the industry-backed Prop 22, rideshare drivers take home $7.12 per hour in median net hourly earnings before tips—a fraction of California’s $16 minimum wage.
The rise of Uber and Lyft to ubiquity over the last decade has been astonishing—over 3 billion trips were taken using the platforms in 2023. Throughout that meteoric expansion to nearly every inch of the globe, the companies have waved away concerns that the drivers keeping the platforms going are being underpaid for their labor.
Anecdotal cases of drivers working grueling hours for a pittance abound, but Uber and Lyft have been able to shrug them off through a combination of industry-funded studies and wage secrecy. However, a few independent analyses have managed to puncture the narrative that the gig economy pays well.
A new study from the U.C. Berkeley Labor Center is one of the strongest examples of that so far. Researchers analyzed 52,370 trips by 1,088 drivers on six rideshare and delivery apps across five major metro areas and found that they earned well below the minimum wage in all five.
The gig companies are promoting Proposition 22-like policies in other states. Our research demonstrates clearly that such policies can be expected to leave drivers with sub-minimum earnings.
The study is particularly notable for the results it extracted about California, where in 2020 gig companies poured tens of millions into Proposition 22, legislation which allowed the industry to continue to classify their workers as independent contractors rather than employees.
The companies promised that exempting drivers and delivery workers would preserve the “flexibility” of gig work while ensuring that they would make over the minimum wage.
Four years later, that promise seems broken. Rideshare passenger drivers, the study found, take home $7.12 per hour in median net hourly earnings before tips—a fraction of California’s $16 minimum wage. When you account for the employee benefits and taxes that drivers have to pay for themselves, the number is even lower.
The lesson for other states and cities considering similar exceptions to labor law for gig companies? Don’t take rideshare companies at their word when it comes to worker pay.
I discussed this report with one of its authors, Ken Jacobs, co-chair of the UC Berkeley Labor Center.
This conversation has been edited for length and clarity.
First of all, congratulations on this major report! Can you tell me a little about how you collected this trip data? What kind of roadblocks do rideshare companies put up to knowing how much workers get paid?
The data comes from a third party app called Gridwise. Drivers use it to track mileage and earnings. We analyzed data for over 1,000 drivers and more than 50,000 trips over a two week period in January 2022 in five metro areas: Los Angeles, San Francisco, Seattle, Chicago, and Boston.
The data allowed us to analyze how much drivers earned per hour and shift across the main passenger and delivery services. I have looked at lots of screenshots from the company apps. The companies don’t make it easy for drivers to calculate their net earnings.
This study split apart passenger and delivery drivers—were there any notable differences in the pay for those distinct groups?
The biggest difference was the share of income that comes through tips. Tips account for a little more than half of the gross income of delivery drivers, but only 10% for passenger drivers. Overall we found that the typical passenger driver earned the equivalent of a $5.97 an hour wage before tips in California, and $7.63 an hour after tips.
Delivery drivers earned about $5 an hour in California without tips and $11.43 an hour with tips. In the three metro’s outside of California, non-tip income—base pay, incentives and bonuses—barely covered expenses. Drivers were essentially working for tips.
Can you explain a little more about how gig companies and this study calculate pay differently, especially when it comes to time between trips and expenses?
When the gig companies talk about how much drivers earn they usually put out figures for gross pay per hour and they don’t include the time a driver is waiting for a request or returning after dropping off a passenger or delivery. That is work time! It is an essential part of the job.
A recent study looked at data from 5.3 million San Francisco rideshare trips to see what drivers did between trips—they found that drivers were mostly heading back to hub areas where they had a greater chance to find a passenger or were cruising while waiting to get the next ride. They were working. When the companies talk about expenses, they don’t include costs associated with any of those miles.
The Gridwise date allows us to account for drivers’ full time and miles for each shift. For expenses, we use the IRS mileage rate for the time period under study of 58.5 cents a mile. This reflects the full cost of owning and operating a vehicle.
Proposition 22, the initiative put on the California ballot by the gig companies, set an initial mileage rate of only 30 cents a mile. The companies justify this by saying that most drivers work very few hours. What they don’t tell you is that most trips are done by drivers who work 20 hours a week or more and for whom gig driving accounts for the greatest use of their vehicle.
We also account for the fact that gig companies do not pay the employer side of payroll taxes or provide other mandatory benefits to drivers.
Your report mentions that concentration in the rideshare and delivery industries may be contributing to low pay, could you tease that out for me?
There are two major gig passenger companies, and four for food and grocery delivery. That gives them significant power to set pay in the industry. They are also able employ what UC Irvine law professor Veena Dubal calls “algorithmic discrimination.” They can see what trips or deliveries drivers have been willing to take for how much money in the past, and can individualize what they offer each driver for the same ride. They do the same in setting what they charge passengers.
How did pay in California compare to the other metro areas you analyzed?
The typical passenger driver earned around $3 less an hour in California than in the other three metros before tips. If we include tips it was around $3.50 less.
For delivery drivers it was the other way around. The typical delivery driver earned $4.50 more an hour in California than the other three metros before tips; $3 more with tips.
What does that say about the ways that Prop 22 affected the industry?
Proposition 22 was sold to voters as setting a higher minimum wage for drivers. In the case of passenger drivers, it had very little effect. Delivery drivers were much more likely to receive Proposition 22 payments and did have higher earnings than their counterparts outside of California. In both cases driver earnings were still well below the state minimum wage. The gig companies are promoting Proposition 22-like policies in other states. Our research demonstrates clearly that such policies can be expected to leave drivers with sub-minimum earnings.
The California Supreme Court recently upheld Prop 22 against a constitutional challenge—how should we expect that situation to evolve?
With the court’s recent decision upholding Proposition 22, we can expect gig companies to continue to pay subminimum wage in the state. The courts did leave open the possibility for the legislature to grant collective bargaining rights to gig workers. Massachusetts will be voting on a gig worker collective bargaining initiative this November. The results of that vote may shape what happens next in California.
"This is something we're doing for all of us," said a Tennessee Drivers Union co-president.
Drivers for the ride-hailing companies Lyft and Uber are demanding better pay and work conditions by beginning Labor Day weekend with a Friday strike at Nashville International Airport.
"The Tennessee Drivers Union (TDU) has strategically chosen Labor Day weekend to stage its strike," the group said in a statement. "The weekend, which draws thousands of visitors to Nashville's music, entertainment, and tourist venues, highlights the $31 billion industry that relies heavily on the labor of ride-share drivers to generate profits."
In addition to the airport strike, which began at 1:00 pm and was set to continue until at least 7:00 pm, the drivers planned to "lead a caravan through Broadway in downtown Nashville, the center of Tennessee's country music tourism industry."
WPLNreported that "at one point, the airport shut down access to the ride-share lot and refused to allow more drivers to enter and join the strike on Friday."
TDU co-president Kovan said that "this is something we're doing for all of us, not for a single individual, whether you are Uber Black, a regular Uber, or a taxi driver," and "this is gonna be the beginning of a nightmare" for the companies.
The union is calling for meetings with Nashville Mayor Freddie O'Connell and the Metropolitan Council, the Metropolitan Nashville Airport Authority, and the Transportation Licensing Commission to go over demands, based on surveying hundreds of drivers.
The workers said they want an expansion of their airport lot as soon as possible and clean, working bathrooms on-site, a 9:00 pm cutoff for scooters in the city, a cap on the number of ride-share drivers in the area, enforcement of the prohibition on fake taxis, and a "dignified" wage.
"The drivers are doing everything. The gas comes out of the drivers' pay, the repairs of the car because it is a personal car, so if they're giving the driver just 45% of the fare, that leaves everybody struggling," a six-year driver in Nashville, who requested anonymity for fear of retaliation, told The Guardian. "In one hour, I can drive from the airport to downtown or downtown to the airport and get $8 to $10, and then a different hour I can get $17. We need the pay to be consistent."
Citing delays in waiting for fares, receiving tickets without warnings, and inadequate airport bathrooms, the driver said, "That's why we came together."
"With the current economic situation, it is really difficult to meet family needs or what you need to survive. We're trying to fight for our rights," he explained. "We also don't want passengers to be overcharged by Uber. When they take over 50% or 60% of the ride fare, they are counting on us getting tips from riders, but the way we are struggling we understand people are struggling, so not everyone tips."
While Lyft and Uber drivers in Nashville joined delivery service workers for Amazon Flex, DoorDash, Grubhub, Instacart, Postmates, and other companies in a strike on May 1, or International Workers' Day, TDU said Friday that "this ride-share organizing effort is the first of its size to occur in the Deep South, in an explicitly anti-worker state."
A report released last month by the Economic Policy Institute (EPI) details how "for at least the last 40 years, pay and job quality for workers across the South has been inferior compared to other regions—thanks to the racist and anti-worker Southern economic development model."
"In addition to right-to-work laws and the overall opposition from political leaders across the region, workers seeking to organize a union typically face intense opposition from employers," the EPI report says. "Further, because of the political opposition to unions, when workers try to organize, employers know that they can illegally intimidate them, refuse to recognize the union, or negotiate a contract in bad faith—with little to no fear of being held accountable by political leaders."
In April, as Volkswagen employees in Chattanooga began voting on whether to join the United Auto Workers, six Southern Republican governors, including Tennessee's, released a joint statement saying they were "highly concerned about the unionization campaign driven by misinformation and scare tactics that the UAW has brought into our states."
The Volkswagen employees ultimately voted to join the UAW. The EPI report emphasizes that "workers must be able to come together in a union to demand fair wages and benefits, a safe working environment, and the ability to have a say about their workplace—even when politicians are intransigent."
TDU co-president Arkangelo on Friday also stressed how important it is to "always stand in solidarity with one another," saying that "if we don't come together as people striving for their rights then we will continue to suffer and [be] robbed by two giants, Uber and Lyft."