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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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Minneapolis City Council Overrides Veto of 'Strongest' US Cease-Fire Resolution
"We are proud of the nine council members who stood by what most Minneapolis residents believe: The defense of humanity is a shared project," two council leaders said.
Feb 08, 2024
The Minneapolis City Council voted on Thursday to override Mayor Jacob Frey's veto of what advocates say is one of the strongest cease-fire resolutions in the country.
The measure, which first passed 9-3 on January 25, with one abstention, calls for a cease-fire in Gaza, an end to U.S. military aid for Israel, the release of the hostages taken by Hamas on October 7, and the release of thousands of Palestinian prisoners held indefinitely in Israel. The motion to override the veto also passed by nine votes.
"We are proud of the nine council members who stood by what most Minneapolis residents believe: The defense of humanity is a shared project," Council President Elliot Payne and Vice President Aisha Chughtai said in a joint statement reported byKARE 11. "When this council speaks with the clarity of a veto-proof majority, we will do everything in our power as council leadership to defend the will of the body, regardless of the issue."
With this override, Minneapolis becomes the latest U.S. city to call for a cease-fire, joining at least 60 other localities including San Francisco; Oakland; Atlanta; Seattle; Detroit; Dearborn, Michigan; Albany, New York; Akron, Ohio; and Providence, Rhode Island. Chicago became the largest U.S. city to pass a cease-fire resolution on January 31.
However, supporters of the Minneapolis resolution say it is unique in several ways.
"With today's City Council vote overriding Mayor Fray's veto, Minneapolis has officially passed the strongest cease-fire resolution in the country, calling not only for immediate, permanent cease-fire but also ending U.S. aid to Israel and freeing Palestinian prisoners," the Minnesota Anti-War Committee said on social media.
The Minnesota chapter of the Council on American-Islamic Relations also called it the "strongest" such resolution "in the nation," and University of Minnesota Students for a Democratic Society said it was the only one to call for an end to U.S. aid to Israel.
In his January 31 veto of the resolution, Frey, a member of the Democratic-Farmer-Labor Party, said he supported a cease-fire, a return of hostages, and a two-state solution, but thought the language of the resolution the council passed was "one-sided."
"The resolution you approved uplifts the history of Palestinians, and all but erases that of Israeli Jews. Including some people's history as valid, truthful and righteous as it may be, while ignoring others, is neither progressive nor inclusive. That's not in keeping with the Minneapolis I know and love," Frey wrote in a letter explaining his decision.
The text of the resolution calls Hamas' October 7 attack on Israel "unacceptable," condemns the targeting of civilians on both sides, and recognizes "the right to self-determination and peaceful, safe futures for both Palestinian and Israeli people."
"Why this matters: People in our city who didn't know about Gaza are now demanding Sens. Tina Smith and Amy Klobuchar ask for a cease-fire."
It also devotes much of its space to detailing the impacts of Israel's assault on Gaza, including the killing of more than 25,000 people in 110 days, the destruction or damage of at least two-thirds of the homes in northern Gaza, and the internal displacement of up to 90% of the population. It also references the testimony of international humanitarian organizations as well as South Africa's case before the International Court of Justice that Israel is violating the Genocide Convention with its campaign.
"Whereas, the city of Minneapolis has a long-standing history of sharing statements on issues happening throughout the world that impact our constituents here at home and in this moment, we are advocating to our state and federal leaders to use their power to call for peace," the resolution states.
Asma Nizami, advocacy director for Muslim women at Revising Sisterhood, said on social media she thought the override was important for its potential impact on Minnesota politicians.
"Why this matters: People in our city who didn't know about Gaza are now demanding Sens. Tina Smith and Amy Klobuchar ask for a cease-fire," Nizami wrote, referring to the state's two Democratic U.S. senators. "This resolution asks them to listen to the people of Minneapolis and stop the bombing."
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Calls for Systemic Transformation of US Policing Follow Damning DOJ Report on Minneapolis PD
"Reform isn't what we need! 'Reform' means more money for the killer cop industry that will never erase its origins out of slave patrols," asserted Black Lives Matter.
Jun 17, 2023
Racial justice defenders on Friday said the Department of Justice probe of the Minneapolis Police Department—which detailed a pattern of excessive violence, racism, and civil rights violations—underscores the need for deep systemic transformation of U.S. policing.
The DOJ's 89-page
report—the result of an investigation launched in the wake of the May 2020 murder of George Floyd by Minneapolis police officer Derek Chauvin—found that, as many community members have said for decades, the MPD and Minnesota's largest city "engage in a pattern or practice of conduct in violation of the U.S. Constitution and federal law."
"Our investigation showed that MPD officers routinely use excessive force, often when no force is necessary. We found that MPD officers often use unreasonable force (including deadly force) to obtain immediate compliance with orders, often forgoing meaningful de-escalation tactics and instead using force to subdue people," the report states. "MPD's pattern or practice of using excessive force violates the law."
\u201cBREAKING\n\nDOJ announces the results of an investigation into the Minneapolis Police Dept. Among the findings, the police:\n\n1) use force against Black & Native American people when unnecessary & disproportionately\n\n2) use racist & misogynistic language \n\nUnsurprising yet shocking.\u201d— Rev. & Prof. Cornell William Brooks\ud83d\udfe7 (@Rev. & Prof. Cornell William Brooks\ud83d\udfe7) 1686931108
The DOJ probe found that MPD:
- Uses excessive force, including unjustified deadly force and unreasonable use of Tasers;
- Unlawfully discriminates against Black people and Native American people in its enforcement activities, including the use of force following stops;
- Violates the rights of people engaged in protected speech; and
- Along with the city, discriminates against people with behavioral health disabilities when responding to calls for assistance.
"We also found persistent deficiencies in MPD's accountability systems, training, supervision, and officer wellness programs, which contribute to the violations of the Constitution and federal law," the report states.
Responding to the investigation, Black Lives Matter tweeted: "Reform isn't what we need! 'Reform' means more money for the killer cop industry that will never erase its origins out of slave patrols. Defund the police. Then we abolish."
\u201cReform isn\u2019t what we need! \n\n"Reform" means more money for the killer cop industry that will never erase its origins out of slave patrols.\n\nDefund the police. Then we abolish. (2/2)\u201d— Black Lives Matter (@Black Lives Matter) 1687025283
Award-winning filmmaker and Twin Cities community artist D.A. Bullock lamented "the absolute folly of dedicating all our resources toward carceral systems that do not work."
"[You] don't fund or bolster the executioner to prevent the murder," he argued on Twitter.
John Thompson, a former Democratic Minnesota state lawmaker from St. Paul, said at a community press conference after the report's release that "we've been here before. Everything they've told you... we've said it before out of our own mouths, only to be ridiculed and called race-baiters."
"I can only speak as a Black man, because I've been a Black man my whole life. Black men died at the hands of the Minneapolis Police Department... We're talking about Black men dying," added Thompson, who was friends with Philado Castile, a Black man shot dead in his car in 2017 by an officer in the Minneapolis suburb of Falcon Heights.
"We steady keep pumping money into public safety but the public is not safe," he contended.
\u201c"everything they've said, we said it out of our own mouths...only to be ridiculed..." \nconsent decrees dont work\u201d— Comrade Ohio (@Comrade Ohio) 1687013602
The DOJ probe found that between 2020 and 2022 MPD officers stopped Black people at 7.8 times the rate of white people, and Indigenous people 10 times as often as whites, with the disparity in searches even worse.
"MPD searches people during stops involving Black people at 12.8 times the per capita rate at which it searches people during stops involving white people. MPD searches people during stops involving Native Americans at 19.7 times the rate for white people," the report notes.
Furthermore, the report highlights a pattern of "needlessly harsh treatment of youth," including an incident in which "an MPD officer drew his gun and arrested an unarmed Black teen for allegedly taking a $5 burrito without paying," pinning the child to the hood of a car and prompting witnessed to call 911 "to report the teen was being accosted by a 'wacko who has a gun.'"
\u201cREAD this THREAD by @radleybalko on today\u2019s DOJ report about the Minneapolis Police Dept. Just remember, this is also the \u201cheartland.\u201d\nHere\u2019s a link to the full report. \n\nhttps://t.co/QS8lB8eBLg\u201d— Sherrilyn Ifill (@Sherrilyn Ifill) 1686936520
A section of the DOJ report on MPD's illegal attacks on protesters and journalists states:
MPD officers regularly retaliate against members of the press—particularly by using force. For example... on May 30, 2020, officers encountered journalists who were sheltering at a gas station. An officer... approached a journalist who was filming, holding up his press credential, and shouting, "I'm press!" The officer forcefully pushed the journalist's head to the pavement. As he lay on the ground, the journalist held up his press credential. In response, an MPD sergeant pepper sprayed him directly in his face, then walked away.
The DOJ said Minneapolis and the MPD have agreed "in principle" to a consent decree, a plan for reform enforced by a federal court.
"George Floyd's death had an irrevocable impact on his family, on the Minneapolis community, on our country, and on the world," U.S. Attorney General Merrick Garland said in a statement. "The patterns and practices of conduct the Justice Department observed during our investigation are deeply disturbing. They erode the community's trust in law enforcement. And they made what happened to George Floyd possible."
"Today, we have completed our investigation, but this is only the first step," Garland added. "We will continue to work with the city and the MPD toward ensuring that MPD officers have the support and resources they need to do their jobs effectively and lawfully as we work together toward meaningful and durable reform."
The report contains 28 recommendations in eight categories: use of force, identifying and reducing racial disparities, protecting First Amendment rights, responding to people with behavioral health issues, accountability, transparency, training, and wellness.
\u201cAG Garland just quoted from video I obtained through a lawsuit against the Minneapolis Police Department, when an officer told Somali American teens he was proud U.S. troops killed \u2018you folk\u2019 during Black Hawk Down. My earlier reporting for @SahanJournal: https://t.co/E562kMBTTh\u201d— Tony Webster (@Tony Webster) 1686928574
The ACLU of Minnesota—which has filed three lawsuits over the unconstitutional MPD practices referenced in the DOJ report—said it hopes the city will agree to include all of DOJ's recommendations in the forthcoming consent decree.
"The findings of the DOJ's investigation into the Minneapolis Police Department are troubling, and sadly not surprising," ACLU of Minnesota executive director Deepinder Mayell said in a statement. "Minneapolis residents—especially Black and Indigenous people, and people with behavioral health disabilities—have long been victim to excessive force and discriminatory treatment at the hands of MPD."
"Police have treated the people and the First Amendment with blatant disrespect by assaulting protesters and journalists," Mayell added. "We hope the coming consent decree finally helps create a community where all people are safe, and police follow the law."
\u201cAs with Ferguson, Louisville, and Cleveland, Black people in Minneapolis have long known about these abuses because they've been subjected to them.\n\nThis was never about one police department\u2014it's about a corrupt and violent system that continues to target Black people.\u201d— Congresswoman Cori Bush (@Congresswoman Cori Bush) 1687011895
U.S. Rep. Ilhan Omar (D-Minn.) said in a statement that "this is a dark day for our city."
“These findings are shocking, but sadly, not surprising," Omar continued. "What's worse, the report finds that many of the violations—such as the widespread failure to report race and gender in stops— increased after George Floyd's murder in 2020."
"As a Black woman living in Minneapolis, I have experienced some of these violations firsthand," she said.
"What's worse, the report finds that many of the violations—such as the widespread failure to report race and gender in stops— increased after George Floyd's murder in 2020."
Omar argued that "we must demand a public safety system built on data and trust, not fear and racism. We must recognize that we cannot prosecute and incarcerate our way to sustainable public safety, that building that trust requires that we address the system that allows racial discrimination—from the disproportionate arrest and incarceration rates Black and Brown people face, to the marijuana laws that criminalize Black and Brown people."
"We need to act at the federal level, including by passing my Amir Locke End Deadly No Knock Warrants Act, my package of bills making police violence against protesters a federal crime (among other provisions), and the George Floyd Justice in Policing Act," the congresswoman added. "And most of all, we must build a police force that is well-trained, held accountable by its leadership, and follows the highest standards of ethics and conduct."
\u201cNow, two separate, independent investigations by state and federal authorities have found very serious and systemic problems that we have to fix.\n\nRead my full statement on the DOJ\u2019s investigation into MPD\ud83d\udc47\nhttps://t.co/uYu27RVY0v\u201d— Attorney General Keith Ellison (@Attorney General Keith Ellison) 1686938837
In response to the DOJ report, Minneapolis Police Chief Brian O'Hara
vowed that "we will change the narrative around policing in this city. Out of the darkness and trauma that our residents and our police officers have experienced over the last three years, we will emerge as a beacon of light for the rest of the world."
Civil rights attorneys Benjamin Crump, Antonio Romanucci, and Jeff Storms—members of George Floyd's legal team who now represent relatives of Amir Locke, a Black man shot dead by MPD officers executing a February 2022 "no-knock" warrant for another man—released a statement that said in part:
Unfortunately, our legal team remains skeptical about Minneapolis' commitment to change and accountability. We are deeply concerned that while city leaders appear to be cooperating with the DOJ directives to create change, the city is doing the opposite, and vigorously defending the conduct of the officers who shot and killed Amir Locke.
"Despite the city's public face of wanting reform to stop the needless deaths of young Brown and Black Minneapolis residents, the city continues to mount aggressive defenses on behalf of the officers and police department they agree requires federal consent reforms," the trio added. "This continued refusal to police from within is a textbook example of why the federal government must police the Minneapolis police."
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