Tag: Lyft

06
Oct
2020
Posted in technology

Uber And Lyft Want To Operate Above The Control Of California Lawmakers

The battle over labor standards in California has been fierce over the last year. The union-conceived AB5 legislation was a disaster, as it tried to treat many independent businesspeople as employees. But the main targets were always the rideshare companies Uber
UBER
and Lyft
LYFT
and other so-called gig-economy businesses, which have backed a major campaign to overturn the law as it pertains to them. But their tactics include some seriously non-democratic angles to effectively sell and then impose their desired view on the state in virtual perpetuity.

Many thousands of drivers provide transportation to consumers who flock to the phone apps for a ride. The companies call themselves “platforms,” a term widely taken up by the tech press and investors through effective PR, because it evokes a marketplace where buyers and sellers do business. No direct involvement—just a cut of the transaction.

Direct involvement would mean that an Uber or Lyft was providing the ride or DoorDash was arranging the delivery. Drivers would then be like

30
Sep
2020
Posted in technology

Uber, Lyft look to kill California law on app-based drivers

LOS ANGELES (AP) — Californians are being asked to decide if Uber, Lyft and other app-based drivers should remain independent contractors or be eligible for the benefits that come with being company employees.

The battle between the powerhouses of the so-called gig economy and labor unions including the International Brotherhood of Teamsters could become the most expensive ballot measure in state history. Voters are weighing whether to create an exemption to a new state law aimed at providing wage and benefit protections to drivers.

Uber and Lyft have fought a losing battle in the Legislature and courts. So now — with help from app-based food delivery companies DoorDash, Postmates and Instacart — they are spending more than $180 million to take their fight directly to voters in the Nov. 3 election.

Early voting in California starts Monday. Uber and Lyft, both headquartered in San Francisco, have said they may leave the state if the measure fails.


The landmark labor law known known as AB5 threatens to upend the app-based business model, which offers great flexibility to drivers who can work whenever they choose. But they forego protections like minimum wage, overtime, health insurance and reimbursement for expenses.

“What’s at stake is the future of labor, the nature of work, how conditions are changing for households amidst the pandemic and recession,” said David McCuan, chair of California’s Sonoma State University political science department.

Labor-friendly Democrats in the Legislature passed the law last year to expand upon a 2018 ruling by the California Supreme Court that limited businesses from classifying workers as independent contractors.

Uber and Lyft have maintained that their drivers meet the criteria to be independent contractors, not employees. They also have argued the law didn’t apply to them because they are technology companies, not transportation companies, and drivers are

29
Sep
2020
Posted in technology

Seattle approves minimum pay rate for Uber and Lyft drivers

(Reuters) – The Seattle City Council passed a minimum pay standard for drivers for companies like Uber Technologies Inc UBER.N and Lyft Inc LYFT.O on Tuesday.

Under the ordinance, effective January, the drivers will now earn at least $16.39 per hour – the minimum wage in Seattle for companies with more than 500 employees.

Seattle’s law, modeled after a similar regulation in New York City, aims to reduce the amount of time drivers spend “cruising” without a passenger by paying drivers more during those times.

City officials argue this should prevent Uber and Lyft from oversaturating the market at drivers’ expense, but the companies say it would effectively force them to block some drivers access to the app. Both Uber and Lyft have locked out drivers in response to the NYC law.

“The City’s plan is deeply flawed and will actually destroy jobs for thousands of people — as many as 4,000 drivers on Lyft alone — and drive rideshare companies out of Seattle,” Lyft said in a statement.

Uber did not immediately respond to request for comment.

Researchers at the University of California, Berkeley, and New York’s New School, who analyzed the Seattle ride-hailing market using city data and a driver survey, found drivers net only about $9.70 an hour, with a third of all drivers working more than 32 hours per week.

But a study of data provided by Uber and Lyft showed most ride-hail workers in Seattle are part-time drivers whose earnings are roughly in line with the city’s median, defying some perceptions of drivers working full-time for little pay.

Reporting by Tina Bellon in New York and Rama Venkat in Bengaluru; Editing by Simon Cameron-Moore

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