With gas prices climbing daily, drivers are starting to struggle to get on the road and remain profitable. Along with that, senior RSG contributor Paula Gibbins will bring to light Uber and Lyft’s attempts to head off unions as well as a new law Chicago is considering passing concerning a driver minimum wage for Uber and Lyft drivers.
Minimum pay law for Uber and Lyft drivers proposed in Chicago (Chicago Tribune)
Summary: A Chicago alderman has proposed an ordinance that would establish the minimum pay of ride-share drivers in the city, drawing concern from companies like Uber and Lyft that say such regulations would hit riders’ wallets the hardest.
Ald. Roderick Sawyer, 6th, introduced the measure that would make sweeping changes to the city laws that govern ride-share services — including driver compensation. His proposal was lauded by a gig workers’ group that said it was time their drivers got more protections after weathering two years of the COVID-19 pandemic.
“We’re not trying to wrest power and control away from ride-share companies,” Chicago Gig Alliance member and Lyft driver Johnnie “JC” Muhammad said. “They’re going get their money. The question is whether or not they’re going to share their money. Right now drivers have become dispensable, and that’s part of the problem.”…
My Take: Chicago wouldn’t be the first city to impose a minimum pay on rideshare platforms. Personally, I’m getting tired of the argument that these regulations will hit the riders wallets hard when these platforms are already charging riders more without giving more to the drivers.
Having a guaranteed minimum pay has worked out well so far in Seattle, so I don’t see why it would be a big issue to have similar laws elsewhere? I haven’t heard about a rider uprising because of astronomical prices in Seattle since this law was put in place. I hope more cities follow suit.
Uber, Lyft and Others Launch Campaign to Head Off Unions (Wall Street Journal)
Summary: Uber Technologies Inc., UBER 1.15% Lyft Inc. LYFT -1.01% and other companies that use independent contractors as drivers are launching a campaign to head off Democratic efforts to classify their workers as employees, which would allow them to form unions.
The companies, which also include DoorDash Inc., DASH -2.99% Grubhub Inc. and several others, plan to run TV and internet ads in the Washington area featuring workers who say they prefer the flexibility of the independent-contractor model over that of a company employee.
“If I want to work 20 minutes a week, or 30 hours, I can do that,” says one worker in the ad. “When I need a day off to study for a big exam, I can do that,” says another.
The new advocacy effort by the app-based companies comes as some lawmakers in Congress and in statehouses push measures to reclassify their part-time workers from independent contractors to employees who would be eligible for additional company benefits and be permitted to join labor unions….
My Take: Let me get this straight. Not only do these companies want to keep drivers as independent contractors without giving drivers true ability to be ICs, but they are also actively trying to prevent drivers from being able to unionize to fight for better pay and working conditions?
How about having a happy medium and actually treating drivers like independent contractors in the first place? Let the drivers set their rates. Don’t punish drivers for canceling rides or not accepting every ride request that comes through. Listen to what the drivers are actually saying and do what the drivers actually want.
DoorDash is testing a feature that lets you return packages to post offices, FedEx or UPS (TechCrunch)
Summary: DoorDash confirmed it’s testing a new feature called “Return a Package” that allows customers to use the service to return packages to the nearest post office, UPS or FedEx location. The feature is part of a small beta test and is not yet widely available, DoorDash said, and declined to share which markets are offering the option.
To use the feature, a customer will first select the option to return a package in the app. They’ll need to have their package already fully sealed with the prepaid shipping label attached. A DoorDash delivery person will then arrive to pick up the package and deliver it to the nearest physical store or post office. They won’t drop off the packages at standalone drop boxes.
“DoorDash is always thinking about new ways to provide the communities we serve with access to unparalleled convenience and opportunity through our platform,” a DoorDash spokesperson told TechCrunch. “We continually explore and test new innovations to provide more value to our customers, Dashers and merchant partners.”…
My Take: This is actually kind of funny to me because just today I was trying to figure out how to send a package that needs to be returned. I live in a small town that doesn’t have its own FedEx office, but it’s a FedEx package that needs to be turned over for delivery back to the company. It has some options such as a nearby Walgreens, but I don’t know where in the store the drop-off is and I’m a bit of an introvert and someone who doesn’t like wandering around even if that happens more often than not.
I don’t want to wander around Walgreens trying to figure out where I can drop off this package and I don’t want to have to approach a worker to figure it out. I would certainly utilize this kind of service. I would gladly pay money to have someone else do that work for me.
Instacart introduces in-store navigation and live phone support for shoppers on its platform (TechCrunch)
Summary: Instacart announced today that it’s introducing in-store navigation, live phone support and a safety toolkit for shoppers on its platform. The company says the suite of new features is part of its new commitment to begin a month-long rollout of new product features for shoppers.
The new in-app navigation feature gives shoppers an interactive map of the grocery store in which they’re shopping. Instacart says the map includes precise item locations to help shoppers navigate the store and find items more easily. The company told TechCrunch that the new feature is being piloted with 15 of its retail partners at more than 80 store locations across 17 states and in the province of Ontario in Canada. Instacart plans to add more retail partners and locations in the future.
Instacart’s new live phone support feature will allow users to speak with a representative to receive help while carrying out a customer’s order. The company says the new support feature will help shoppers with any issues that may arise while they’re shopping or delivering, such as problems with payment or instances where a customer isn’t available to accept their order. Representatives will be available from call centers across the United States and internationally….
My Take: Instacart shoppers, I want to hear your opinion on this! Would this help make your jobs easier? I feel like it would be more convenient than trying to hunt down an employee to help point you in the right direction. It also sounds like they are actively trying to improve support experiences, which is hit or miss on all platforms.
‘It’s not worth it for us’: Uber, delivery drivers feel the pinch at the pump (ABC Omaha)
Summary: In an airport waiting lot, Uber and Lyft drivers are doing just that: waiting.
“Sometimes we stay here in this parking lot for three hours to get some customers, some passengers from the airport,” said driver Fadi Haddid.
Gassing up for those passengers makes some drivers wonder if they should hit the brakes. On average, gas in Nebraska for Haddid right now costs $3.80 a gallon.
“It’s not worth it for us,” Haddid said. “Because we pay for the gas, for the tires, for the miles, for everything.”
For Haddid, the pain at the pump is as pronounced as it’s been in his five years driving.
“This job is not worth it anymore, now at this time,” Haddid said….
My Take: This is a common story that we’re seeing across the U.S. right now. Gas prices are hurting rideshare and delivery drivers. Without a pay increase from these companies, drivers are dropping off the grid.
On Reddit, drivers are complaining about the gas prices daily, in multiple threads each day. There are parts of California where drivers are seeing $7+ per gallon. Here in Minneapolis, I’m looking at $3.89 on average, which is well above what it “should” be.
Several drivers are considering boycotting Uber and Lyft unless these companies step up and help the drivers out. Passengers have to realize that the cost to do business has risen along with the gas prices, so higher fares should be expected so drivers can continue to earn a living.
BREAKING NEWS: Uber adds fuel surcharge for drivers and couriers with rising gas prices
Uber seems to have stepped up in some way for their drivers. Is it enough though?
What do you think of the surcharge? Is Uber doing enough? Will others follow suit?
-Paula @ RSG
