RSG116: Will Uber's New Driver Features Lead to Rider Discrimination?

3 min read

At the end of 2019, Uber rolled out new features for drivers in California in response to AB5. One of those new features allows drivers to see where their passengers are going and was received positively by drivers. However, today we’re talking about the downside of knowing a passenger’s destination and whether or not this could lead to destination discrimination.

If you’d like to read a transcript of this podcast, please click here.

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Intro

Today I’ll be chatting with David Zipper, a writer for CityLab on urban mobility and technology
Also a Visiting Fellow at the Harvard Kennedy School’s Taubman Center for State and Local Government
We’ll be talking about destination discrimination, what it is, the impact of it and more

Intro to David Zipper

David Zipper’s perspective on cities and urban mobility is rooted in his experience in city hall, venture capitalism, policy research and more
He advises numerous startups, mayors and transit agencies
His writing has been published in The Atlantic, Slate, Newsweek and more
He focuses on the relationship between transit and ride hail services

Uber’s Changes in California

Before Uber’s recent changes to passenger destination information, drivers never knew where their passengers were going until the minute they picked passengers up
Pain point for drivers
When Uber got started, it was a big deal that there wouldn’t be discrimination based on destination (which can be tied to race, too)
This change could potentially be huge

Destination Discrimination

What is to say drivers won’t refuse trips based on where the destination is?
The potential for this change is that drivers could decline trips that take them to a less desirable location
This isn’t a hypothetical – we have seen Uber direct drivers to certain wealthier areas (demand)
Impacts the mobility network (from a policy standpoint)

How to Encourage Equity in Rideshare

Balance between ‘carrot and stick’ approach
Could be an opportunity for state to regulate these approaches
Uber is encouraging drivers to be more like independent contractors – does this make this discussion more difficult?

Balancing Regulation with Independent Contractor Status

Uber seems to be pursuing an independent contractor status for their drivers
Is Uber just a marketplace connecting drivers and riders?
Regulators in California are probably looking at these announcements carefully and may need to dig for more information

Outro

Thanks to David for coming on this episode and sharing his thoughts with me on destination discrimination.
It’s a tricky issue and I’m curious to see how regulators will work with ridesharing companies, particularly in California and other states pursuing legislation similar to AB5, in the future.