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Lyft, Uber Drivers Banned From Tennessee Airport After Caravan for Pro-Worker Bill
"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.
Mar 03, 2025
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 Dreams reported 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.
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Don’t Take Rideshare Companies at Their Word When It Comes to Worker Pay
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.
Sep 02, 2024
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.
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Uber and Lyft Drivers Kick Off Labor Day Weekend With Nashville Strike
"This is something we're doing for all of us," said a Tennessee Drivers Union co-president.
Aug 30, 2024
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."
WPLN reported 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."
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The Gig Economy Is a Working-Class Nightmare
As the “gig” model has taken hold, many traditional, stable jobs have been put in jeopardy, and many of the hard-fought rights associated with them are being dismantled or watered down.
Aug 05, 2024
In his 1930 essay “ Economic Possibilities for Our Grandchildren”, the economist John Maynard Keynes predicted that future generations would someday work 15 hours a week. The theory was based on anticipated advances in technology and productivity. Keynes’ theory has a strange kind of prescience today (though not quite in the way he expected). What’s called the “gig economy”—a labor market that relies heavily on part-time, temporary, or freelance work—resembles his prediction in a backward sort of way, as numerous industries and occupations have moved away from fixed, stable employment toward short-term flexibility.
Conclusive data on the current size of the independent contractor workforce in the U.S. is difficult to find. Different sources disagree on the scale. In 2017, according to data from the Bureau of Labor Statistics, about 6.9% of workers in America were classified as independent contractors (lower than in 2005). However, the Covid-19 pandemic increased demand for delivery services and rideshare apps (Uber, Doordash, Instacart). A study published last year by the National Bureau of Economic Research found that independent contractors may be around 15% of all workers.
Gig workers are not a particularly large slice of our labor force, but they represent a microcosm of a larger trend—the effects of post-Fordism (post-industrialism). In the 1970s, America transitioned away from the Fordist model of labor, where people worked on assembly lines in the mass production of goods. As this was happening, wages began to stagnate, union membership declined, and the U.S. lost its domestic manufacturing base. The New Deal coalition was dissolved, and the working class became less and less associated with the Democratic Party.
Keeping people stuck in low-wage, part-time jobs in the service sector without security or benefits is a poor substitute for fair compensation, and companies cannot rely on it forever.
A major change has taken place in the economic organization of our society. As social safety nets and union membership have been eroded, job precarity has become a permanent state for many Americans. In the gig economy, your position and status are constantly in flux. Maybe you do your job online in a hybrid or work-from-home format. Maybe you move around between periods of unemployment and temporary or part-time employment. Under the Fordist model, a person could expect to work at the same place for their entire lives with rising standards of living. The gig economy, by contrast, is a fractured labor market where work is increasingly isolated, casualized, and digitized, and limited compensation and benefits are the norm. Gig work is particularly common among younger generations. Nearly 45% of millennial professionals do freelance work (many in addition to other jobs).
In 1997, Alan Greenspan, the then-Chairman of the Federal Reserve, testified before Congress, and he attributed the success of the economy to growing “worker insecurity.” Essentially, workers were too worried about keeping their jobs to ask for higher wages or benefits. They no longer had the same kind of job security, which meant they were in a weaker bargaining position. If you’re an employer, this kind of relationship is ideal. You keep labor costs low, and profits high.
Nowhere is this basic lack of fairness more evident than in gig positions. If you’re classified as an independent contractor, there are a whole host of legal rights that don’t apply to you. It varies by state, but in Massachusetts, for example, you don’t have a right to a minimum wage, overtime, or sick pay. You’re not eligible for unemployment benefits. You’ll almost certainly have a harder time finding health, dental, or vision insurance. Benefits such as retirement, worker’s compensation, and family leave are also generally not offered. You most likely won’t get paid time off for public holidays. Anti-discrimination laws don’t protect you, and you can’t legally sue your employer for wrongful termination (although there are exceptions if the employer has violated a written contract). Independent contractor status also severely limits the possibilities of labor organizing.
There are some benefits to independent contract work (it’s easier to set your own hours, work remotely), but in an ideal labor market, people would have a choice between flexibility and stability. They wouldn’t be forced into either category. For many people, this doesn’t seem to be the case.
In 2020, rideshare drivers in California fought a bitter fight to avoid being classified as independent contractors. The state had previously passed Assembly Bill 5, which required rideshare drivers to be classified as employees. Uber, Lyft, and other companies drafted and campaigned for Prop. 22 to exclude drivers from being classified as employees and spent more than $200 million supporting the measure, according to OpenSecrets. The U.S. Department of Labor and the National Labor Relations Board also supported the bill. In 2020, the measure passed.
As gig positions become more and more common, we can expect to see similar fights in other industries, with similar results. Companies can essentially rewrite labor laws in their favor, and poor and working people bear the brunt of this.
Alternatives to Uber have also suffered. A significant share of the market has been taken away from traditional cab companies. New York City’s taxi medallion system, for instance, has faced a collapse. The medallions (which are required to operate a yellow cab) once sold for up to $1 million, but have plummeted in value, now going for as little as $90,000. Many cab drivers have worked for years to earn these medallions, planning to lease them to new drivers to finance their retirement. These people have essentially had their savings wiped out.
In 2018, New York drivers experienced a string of suicides related to the increased difficulties of earning a living in these positions. In February, 2018, a livery driver named Doug Schifter committed suicide in front of City Hall. He had previously been the writer of a column in a trade publication about how app-based services were flooding his market. Later that year, a cab driver named Nicanor Ochisor hanged himself in his garage. His family publicly stated that ridesharing companies like Uber and Lyft had made it impossible for him to earn a living.
In other industries, such as academia, gig workers are being similarly squeezed. Adjunct or contract-renewable professors may make less than half what tenured professors make, and often have to string together work across multiple universities, sometimes supported with tutoring, test proctoring, and other side jobs. According to survey data released in 2022 by the American Federation of Teachers, “a quarter of adjunct faculty have an annual salary below the federal poverty line.” These professors often have limited or no benefits, and no guarantee of work past the current semester.
These are just a few examples. As the “gig” model has taken hold, many traditional, stable jobs have been put in jeopardy, and many of the hard-fought rights associated with them are being dismantled or watered down. We’ve entered the age of casualized work, but for the opposite reason Keynes predicted—not because we’re basking in leisure, but because we’re trapped in a state of precarity. Productivity has increased, but these gains have not been evenly distributed.
Aside from being unfair, this model is also unsustainable. Keeping people stuck in low-wage, part-time jobs in the service sector without security or benefits is a poor substitute for fair compensation, and companies cannot rely on it forever. The essential hollowness of this model is in plain view, and the subordination of workers to these demands will, sooner or later, collapse. It’s impossible to predict when exactly this will happen, or on what scale, but it can be predicted that it will happen eventually.
How can this be overcome? A sharp reversal of course is needed. Working conditions are unlikely to improve unless we can rebuild the popular institutions which guarantee our rights. Labor unions in particular can establish paths to long-term job security and multi-year contracts as industry standards. Additionally, peer countries have addressed the shortcomings of gig work by offering things like paid family leave, sick leave and universal healthcare to the population. The U.S. needs to encourage broad, expansive change to address these growing concerns, and re-write the terms of our social contract to create routes to economic security. If there is to be any kind of positive development in this area of the labor market, it will depend on these efforts.
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'Tragic Outcome' for Gig Workers as California Supreme Court Hands Win to Uber, DoorDash
"Today's ruling only strengthens our demand for the right to join together in a union so that we can begin improving the gig economy for workers and our customers," the case plaintiff said.
Jul 25, 2024
Labor advocates on Thursday decried a ruling by the California Supreme Court upholding a lower court's affirmation of a state ballot measure allowing app-based ride and delivery companies to classify their drivers as independent contractors, limiting their worker rights.
The court's seven justices ruled unanimously in Castellanos v. State of California that Proposition 22, which was approved by 58% of California voters in 2020, complies with the state constitution. Prop 22—which was overturned in 2021 by an Alameda County Superior Court judge in 2021—was upheld in March 2023 by the state's 1st District Court of Appeals.
The business models of app-based companies including DoorDash, Instacart, Lyft, and Uber rely upon minimizing frontline worker compensation by categorizing drivers as independent contractors instead of employees. Independent contractors are not entitled to unemployment insurance, health insurance, or compensation for business expenses.
There are approximately 1.4 million app-based gig workers in California, according to industry estimates.
While DoorDash hailed Thursday's ruling as "not only a victory for Dashers, but also for democracy itself," gig worker advocates condemned the decision.
"Over the last three years, gig workers across California have experienced firsthand that Prop 22 is nothing more than a bait-and-switch meant to enrich global corporations at the expense of the Black, brown, and immigrant workers who power their earnings," plaintiff Hector Castellanos, who drives for Uber and Lyft, said in a statement.
"Prop 22 has allowed gig companies like Uber, Lyft, and DoorDash to deprive us of a living wage, access to workers compensation, paid sick leave, and meaningful healthcare coverage," Castellanos added. "Today's ruling only strengthens our demand for the right to join together in a union so that we can begin improving the gig economy for workers and our customers."
Lorena Gonzalez, president of the California Federation of Labor Unions, AFL-CIO, said that "we are deeply disappointed that the state Supreme Court has allowed tech corporations to buy their way out of basic labor laws despite Proposition 22's inconsistencies with our state constitution."
"These companies have upended our social contract, forcing workers and the public to take on the inherent risk created by this work, while they profit," she continued. "A.B. 5 granted virtually all California workers the right to be paid for all hours worked, health and safety standards, unemployment insurance, workers compensation, and the right to organize."
"Rideshare and delivery drivers deserve those rights as well," Gonzalez stressed.
The Gig Workers Rising campaign said on social media that "Uber and other app corporations spent $220 million to buy this law, and they did it by tricking Californians."
Prop 22's passage in November 2020 with nearly 59% of the vote was the culmination of what was by far the most expensive ballot measure in California history. App-based companies and their backers outspent labor and progressive groups by more than 10 to 1, with proponents pouring a staggering $204.5 million into the "yes" campaign's coffers against just $19 million for the "no" side.
"Voters were told the initiative would provide us with 'historic new benefits' and guaranteed earnings," said Gig Workers Rising. "But since it went into effect, drivers have seen our pay go down, learned the benefits are a sham, and have to accept unsafe rides because of the constant threat of being 'deactivated,' kicked off the app with little explanation or warning."
"If Uber really cared about good benefits and fair wages, it could make that happen tomorrow," the campaign added. "Instead, it has shown it would rather slash pay, bamboozle voters, and put drivers' lives and livelihoods in danger—all while promising $7 billion in stock buybacks to banks and billionaires."
Veena Dubal, a law professor at the University of California, Irvine who focuses on labor and inequality, told CalMatters that Thursday's ruling was "a really tragic outcome," but "it's not the end of the road."
Dubal's sentiment was echoed by some California state legislators, who said the ruling presents an opportunity to act.
"While this decision is frustrating, it must also be motivating," said state Senate Labor Committee Chair Lola Smallwood-Cuevas (D-28). "I'm more determined than ever to ensure that all workers—including our diverse and Black, Indigenous, and people of color-led gig workforce—have the basic protections of workers compensation, paid sick leave, family leave, disability insurance, and the right to form a union."
Prop 22 has served as a template for lawmakers in other states seeking to deny or limit basic worker rights, benefits, and protections.
In Massachusetts, app-based companies have been fighting for years to get a measure to classify drivers as contractors on the state ballot. In 2022, Lyft made the largest political donation in state history—$14.4 million—to a coalition funding one such proposal.
Last month, Uber and Lyft reached an agreement with the office of Massachusetts Attorney General Andrea Campbell, a Democrat, to pay $175 million to settle a lawsuit filed in 2020. As part of the deal, the companies also agreed to increase driver pay and provide paid sick leave, accident insurance, and some health benefits. The agreement does not address how app-based gig workers should be classified.
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Wall Street Greed, Not Worker Pay, Is Making Your Uber Ride More Expensive
Falsely claiming that wage protections will drive up fares seems to be a tactic rideshare corporations use to pit drivers against passengers and obscure a massive transfer of wealth.
Mar 31, 2024
If you’ve taken an Uber ride recently, you’ve probably noticed it cost a lot more than a few years ago. Why is that? We conducted the largest-ever study of rideshare fares to find out, and discovered a story of gaslighting and corporate greed that squeezes rideshare drivers and riders alike, while funneling our money to banks and billionaires.
This month, Minneapolis passed an ordinance requiring rideshare corporations to pay drivers at least $1.40 per mile and 51 cents per minute. In a desperate attempt to block the pay floor, Uber and Lyft are threatening to leave the city, claiming that such a requirement would make rides too expensive for residents. This argument—that higher driver pay would force big fare hikes—is one of Uber and Lyft’s favorite scare tactics. As drivers across the country have protested poverty wages and organized for better pay, the rideshare giants have trotted out this line again and again—in Connecticut, Chicago, New York, and Seattle, to name just a few.
We decided to test that claim. Our team analyzed over a billion rideshare trips, comparing four years of data in Chicago and New York. These are two of the biggest rideshare markets in the U.S. and the only two American cities that make rideshare corporations report detailed trip data. In New York City, drivers overcame Uber’s fearmongering and won a minimum pay standard that took effect in February 2019. In Chicago, drivers are organizing but haven’t yet won pay protections.
Letting rideshare corporations bully and bamboozle to get their way harms all of us.
If Uber’s argument was true, fares should have gone up more in New York after the pay standard took effect. In fact, the opposite happened. Over the four years we studied, Uber and Lyft raised fares by 54% in Chicago, where drivers have no pay protections. In New York, they only increased fares by 36%. The reality just doesn’t match Uber’s scare tactics.
So if fares went up more in the city without a pay floor, what’s causing these big price hikes? We looked at many possible explanations, but only one fits the data: pressure from Wall Street.
For years, Uber used money from the likes of Goldman Sachs, BlackRock, and Jeff Bezos to subsidize cheap rides and decent pay. Now that Uber dominates the market, its investors are demanding their cut. As the corporation has faced increasing calls to turn a profit, it has jacked up fares and cut driver pay.
The strategy is working: just last month, Uber reported an annual profit for the first time ever—and promptly announced plans to give $7 billion to shareholders.
Letting rideshare corporations bully and bamboozle to get their way harms all of us. Riders are forced to pay more to get around, while drivers have to work long hours and still struggle to cover the bills. Falsely claiming that wage protections will drive up fares seems to be a tactic to pit drivers against passengers and obscure this massive transfer of wealth to Wall Street.
The good news is that communities are no longer falling for Uber’s scare tactics. In Minneapolis, the city council stood with the city’s mostly Black and immigrant drivers instead of giving in to Uber’s bullying. And in Chicago, drivers are organizing for an ordinance setting a living wage and protections against unfair deactivations—and have the support of a majority of the city council.
These fights are far from over (already Uber and Lyft are turning to the Minnesota state legislature, which could pass a law banning the Minneapolis ordinance from going into effect). But when drivers and communities stand together, these cities are showing we can say no to Uber’s bullying, ensure drivers are paid enough to provide for their families, and shape a transportation system that serves us instead of Wall Street.
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Minnesota Dems Set Bar for State Legislatures, Passing Nearly Every Item on 'Transformational' Agenda
"The work we've done over the last five months will make a generational impact on our state—it will lower costs, improve lives, and cut child poverty," said Gov. Tim Walz.
May 23, 2023
Progressives are applauding what Minnesota House Speaker Melissa Hortman called the state's "transformational" legislative session, which ended on Tuesday after the Democratic-Farmer-Labor Party passed nearly every item on its agenda, securing economic justice, reproductive rights, and labor protections for Minnesotans.
With the DFL holding only a narrow majority in the state House and Senate—a six-vote and one-vote margin, respectively—policy researcher Will Stancil said on social media that "the scale of their achievement cannot be overstated."
"The Minnesota Legislature just completed what is probably the most productive session anywhere in the country since probably the New Deal," he said. "Sweeping bills and reforms across every area of life."
Stancil was among a number of progressives who highlighted nearly two dozen bills passed by the DFL and signed into law by Democratic Gov. Tim Walz, who posted an image of a whiteboard with party's legislative agenda on it along with the word, "Done."
The party's achievements over the past five months include a statewide paid family and medical leave program, which provides 20 weeks of leave; the legalization of recreational marijuana use; and a law providing free school meals to all public and charter school students—part of Walz's plan to "make Minnesota the best state in the country to raise a child."
"The work we've done over the last five months will make a generational impact on our state—it will lower costs, improve lives, and cut child poverty," said Walz on Tuesday.
The party also passed a bill codifying Roe v. Wade amid a nationwide assault on abortion rights, legal protections for transgender youths who receive gender-affirming healthcare in the state, and a bill setting a minimum wage for Uber and Lyft drivers, leading a crowd of drivers to give the legislation's sponsor, state Sen. Omar Fateh (D-62), a "hero's welcome" after it passed on Sunday.
"Rather than looking at the November numbers result and imposing some kind of self-limiting narrative about the scope of their mandate, Minnesota Democrats looked at their priorities and said, 'How much of the list can we get done?'" said Stancil. "Turns out the answer was 'Almost everything.'"
The party's achievements in Minnesota, said pro-workers' rights media organization More Perfect Union, should "set the precedent for state governments across the country."
"On the balance," said the organization, "Minnesota progressives took narrow House and Senate majorities following years of gridlock—and in their first session in power, managed to set the bar for Democratic legislatures."
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'Our System Is Broken,' Say Labor Leaders as California Court Upholds Prop 22
But "the oligarchs are dancing in the streets tonight," said one law professor as talk among worker advocates turned to a likely appeal before the state Supreme Court.
Mar 14, 2023
Labor advocates on Tuesday decried the California appellate court largely upholding Proposition 22, the industry-backed 2020 state ballot measure allowing app-based ride and delivery companies to classify their drivers as independent contractors—which is serving as a template for legislation to deny basic worker rights, benefits, and protections in other states.
The 1st District Court of Appeals on Monday rejected Alameda County Superior Court Judge Frank Roesch's 2021 ruling that Prop 22 was unconstitutional, a decision viewed at the time as a major blow to gig economy companies such as Uber, Lyft, DoorDash, and Instacart whose business models rely upon minimizing frontline worker compensation by categorizing drivers as independent contractors instead of employees. Independent contractors are not entitled to unemployment insurance, health insurance, or recompensation for business expenses.
"The oligarchs are dancing in the streets tonight," tweeted Veena Dubal, a professor at the University of California College of the Law, San Francisco.
David Huerta, president of the California branch of the Service Employees International Union (SEIU)—which led a 2021 lawsuit challenging Prop 22 and is expected to appeal Monday's decision to the California Supreme Court—said in a statement that "when gig companies can spend over $200 million to pass a law that violates our state's constitution instead of investing in workers, it's clear that California needs better safeguards for our democracy."
"And now, the fast food industry and oil industry are copying the gig industry's playbook—attempting to boost their profits by hijacking the ballot referendum process and overturning laws that give workers a voice on the job and protect the health of our communities," he added.
Meanwhile, Uber chief legal officer Tony West called the ruling "a victory for app-based workers and the millions of Californians who voted for Prop 22" and claimed that the law gives drivers and couriers "new benefits while preserving the unique flexibility of app-based work."
Prop 22's passage in November 2020 with nearly 59% of the vote was the culmination of what was by far the most expensive ballot measure in California history. App-based companies and their backers outspent labor and progressive groups by more than 10 to 1, with proponents pouring a staggering $204.5 million into the "yes" campaign's coffers against just $19 million for the "no" side.
Had voters rejected Prop 22, gig companies would have been compelled to pay drivers the state minimum wage, and provide healthcare, paid sick leave, overtime pay, and reimbursement for some of the work-related expenses that claim a significant share of drivers' income.
Instead, app-based companies are required to pay frontline workers 120% of the state minimum wage—currently $15.50 per hour—but only while driving and not during the waiting that constitutes a significant amount of their workday. The companies must also offer a health stipend to drivers who work more than 15 hours a week—again, only actual driving hours count—and cover the cost of workplace injuries.
The experience of Daryush Khodadadi-Mobarakeh—who drives 35-40 hours a week for Uber, Lyft, and DoorDash—is typical of many app-based drivers.
According to CalMatters labor reporter Grace Gedye:
Khodadadi-Mobarakeh, who is a leader with the California Gig Workers Union, said his pay has consistently decreased since he began working in 2014, including after Prop 22 went into effect. Now it takes him about 12 hours to make the same amount he used to earn in eight hours before Prop 22, he said. And he doesn't receive the health stipend; he didn't bother trying to sign up, he said, because he gets insurance through his wife and his understanding is that you need to be on your own insurance to get the reimbursement.
A May 2021 Instacart survey found that just 12% of its shoppers—the workers who fill and deliver customer orders—said they worked enough weekly hours to qualify for the health stipend, and of those people, only a quarter applied for and received the benefit.
Prop 22's passage inspired the introduction of similar legislation in other states. In Massachusetts, Lyft gave a record $14.4 million to a coalition established to fund a prospective 2022 state ballot measure to keep ride-hailing and delivery app drivers classified as independent contractors.
The Massachusetts Supreme Judiciary Court ultimately blocked the measure from appearing on the 2022 ballot, arguing that app-based companies went too far by including language meant to protect them from liability when their drivers get in accidents by classifying them as "not an employee or agent."
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Coalition Representing 24 Million Workers Blasts 'Dangerous' Cuellar Bill
"The House has acted: Now, the time has never been more urgent for the Senate to hold a vote for the passage of the PRO Act," said one union leader.
Aug 01, 2022
A coalition of 40 labor and social justice groups on Monday sounded the alarm over anti-worker legislation recently introduced by right-wing Democratic Congressman Henry Cuellar of Texas and two House Republicans.
"The latest attack on working people by Rep. Cuellar is proof positive that elections matter."
The Worker Power Coalition, which represents 24 million workers, took aim at the "dangerous" Worker Flexibility and Choice Act (WFCA), unveiled last month by Cuellar, along with GOP Rep. Elise Stefanik (N.Y.) and Michelle Steel (Calif.).
Experts warn the bill would gut key parts of the Fair Labor Standards Act of 1938, impacting not only gig workers employed by ride-hailing giants like Lyft and Uber or food delivery services like DoorDash but also others whose companies want to skirt minimum wage and overtime protections.
Nicole Moore, a part-time Lyft driver and the president of coalition member Rideshare Drivers United, pointed to the battle over Proposition 22 in California--an industry-backed ballot measure that enabled app-based companies to classify workers as independent contractors rather than employees but was struck down in state court.
"Uber and Lyft poured $200 million into Prop 22 in California to take away our rights to unemployment benefits, workplace safety, and sick time. All during a global pandemic. Now they're trying to do it federally," said Moore. "Legalizing the misclassification of app-based workers would deny hundreds of thousands of workers essential workplace protections, and amount to billions of dollars in corporate handouts to a multibillion-dollar industry."
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As The Hill reported:
Uber and Lyft have not publicly commented on the proposal. The companies directed The Hill to the Coalition for Workforce Innovation, a group both Uber and Lyft are members of, for comment.
Evan Armstrong, chair of the Coalition for Workforce Innovation, said the proposal provides "clarity and rules of the road for independent workers and businesses."
"The bipartisan bill strikes a balance to promote independent work while ensuring more options for benefits, support, and protections," Armstrong said in a statement.
Meanwhile, Jimmy Williams, president of the International Union of Painters and Allied Trades, another coalition member, directed criticism at Cuellar and called on Democrats in Congress to pass the Protecting the Right to Organize (PRO) Act.
"The latest attack on working people by Rep. Cuellar is proof positive that elections matter," Williams said. "Rep. Cuellar voted against the PRO Act, which would fix worker misclassification, to side with billionaire executives in Silicon Valley over his constituents."
Cuellar narrowly won a May runoff election against two-time progressive primary challenger Jessica Cisneros in Texas' 28th Congressional District.
House Speaker Nancy Pelosi (D-Calif.), House Majority Leader Steny Hoyer (D-Md.), and House Majority Whip James Clyburn (D-S.C.) faced criticism for backing to the anti-choice, anti-worker incumbent.
Justice Democrats, which supported Cisneros, highlighted in an email Monday that "Pelosi helped conservative anti-abortion Democrat Henry Cuellar win" and "now, Cuellar has a new bill with Republicans to eviscerate labor protections in America."
"Cuellar is doing the bidding of gig companies like Uber and DoorDash who exploit workers by classifying them as independent contractors," the group added. "This is a terrible bill that could pass with the support of Republicans and corporate Democrats like Cuellar. Cuellar's position on labor standards is one of the reasons Justice Democrats backed Jessica Cisneros in TX-28. But Pelosi, Cuellar, and big corporate money won."
Williams noted Monday that "Uber and Lyft are spending hundreds of millions of dollars at the state and national levels to try to ensure they don't have to play by the same rules as every other employer."
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"The House has acted: Now, the time has never been more urgent for the Senate to hold a vote for the passage of the PRO Act," Williams added.
The Democrat-controlled House approved the PRO Act in February 2020 and May 2021. However, it lacks the Republican support necessary to pass in the Senate unless Democrats kill the filibuster, which a few right-wing Democratic senators oppose.
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Uber, Lyft, DoorDash Panned for New Lobby Group to Fight Worker Rights
"Imagine if they spent all this money paying workers fairly instead of on propaganda to prevent them from having to pay workers fairly," Gig Workers Rising said of app-based companies.
Mar 08, 2022
An app-based worker advocacy group on Tuesday decried companies including Uber, Lyft, and DoorDash for launching a new lobby group to fight federal and state-level efforts to protect workers and reclassify them as employees instead of independent contractors.
"There's nothing about working on an app, or having some flexibility in your work schedule that means people need to forfeit basic workers' rights."
The Hill reports the new lobby group, called Flex, will push back against Democrats' Protecting the Right to Organize (PRO) Act, a sweeping bill that, if passed, would expand collective bargaining rights, improve access to union elections, and impose penalties on businesses that exploit their workers.
The group will also fight state-level legislation to classify app-based drivers and other workers as employees--a status that would confer minimum pay, healthcare, and other benefits denied to independent contractors.
"Imagine if they spent all this money paying workers fairly instead of on propaganda to prevent them from having to pay workers fairly," the advocacy group Gig Workers Rising tweeted about app-based companies in response to Flex's formation.
The Wall Street Journal notes that some of Flex's members were previously members of the Internet Association, a lobby group representing tech titans including Facebook and Google.
Critics accuse app-based companies of seeking to extract maximum profits from their workers without providing them with the basic benefits and protections due to employees.
At the state level, Lyft in December made the largest one-time political donation in Massachusetts history--$13 million--to a coalition launched to fund a ballot measure that, if passed, would deny drivers employee status.
Meanwhile, tech companies including Uber and Lyft are backing a bill seeking to prevent app-based drivers from being classified as employees in Washington state. The measure, H.B. 2076, passed the state House in February and is expected to face a Senate vote as soon as next week.
The Massachusetts and Washington battles closely mirror California's fight over Proposition 22, a measure approved by voters in November 2020 that exempts app-based driver companies from classifying their workers as employees.
In what was the costliest ballot initiative in California history, Uber, Lyft, and DoorDash collectively spent $160 million supporting Prop 22. The app-based companies also pushed drivers to vote "yes" on the measure, while some high-profile opponents of the bill endured intense harassment.
Computer security researcher and app-based worker advocate Katie Moussouris on Monday said people should not believe the "propaganda" of app-based companies "trying to classify drivers as anything less than full-time employees."
"There's nothing about working on an app, or having some flexibility in your work schedule," she tweeted, "that means people need to forfeit basic workers' rights."
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