Weekly Roundup: DoorDash Pilots W2 Employee-Based Delivery Model

DoorDash is running a pilot where it uses W2 employees to deliver food. Uber is getting more drivers to electrify, but there is a charging issue. Uber and Lyft spend a lot of money to push back against a transit tax proposal. Lyft makes it easier to deal with range anxiety. We break it all down for you.

DoorDash Pilots W2 Employee-Based Delivery Model in Select Markets

DoorDash
DoorDash

SOURCE – Business Insider (Bypass paywall)

DoorDash, known for its gig-worker model, is testing a new delivery model that employs W2 employees. DoorDash is partnering with agencies, including Fresno Logistics and LCSP One, to offer W2 courier benefits, like guaranteed hourly wages, healthcare, and paid time off in Austin, Texas, and Fresno, California.

  • This pilot program, called Local Commerce Service Partner Program (LCSP), aims to ensure consistent delivery coverage and explore new order types. This may stem from independent contractor couriers rejecting low-paying offers or avoiding unprofitable areas, as the compensation wouldn’t justify the time and expenses incurred for those deliveries.
  • Fresno Logistics offers $16/hour plus benefits, while LCSP One pays $13/hour with $0.10/mile reimbursement.
  • DoorDash maintains its commitment to the independent contractor model for the majority of its operations, viewing this pilot as a supplement to its existing workforce.
  • None of these drivers are officially employees of DoorDash. Through this model, DoorDash effectively outsources employment responsibilities, potentially mitigating legal and financial risks associated with directly hiring delivery personnel.
  • Your take: As delivery couriers become savvier about selecting profitable trips and customers increasingly skip tips due to rising service fees, a crucial question emerges: Are gig apps moving towards W2 labor models? We’d love to hear your thoughts! Reply directly to this email with your thoughts – your insights could be featured in an upcoming newsletter!

Uber’s EV Push Hits Urban Charging Roadblock

Uber NYC Axios
Uber NYC Axios

SOURCE – Axios

Rideshare drivers are adopting EVs five times faster than the general public, with 15% of Uber miles in California now electric and over 20% in London. However, the lack of sufficient charging stations, particularly fast chargers, is becoming a significant challenge for EV rideshare drivers in cities like New York and San Francisco.

  • Urban areas face unique challenges in EV infrastructure development, including limited space, high power demands, and lengthy permitting processes for new charging stations.
  • Uber partnered with its competitor in NYC, Revel, to expand access to fast-charging networks, which the startup has been building over the years.
  • New York City’s Green Rides Initiative, requiring all rideshare vehicles to be electric or wheelchair accessible by 2030, has led to a surge in EV rideshare vehicles from 2,000 to 10,000 in a short period.
  • To address the charging infrastructure gap, Uber is also sharing driver heat maps to identify charging deserts and guide the strategic placement of new charging stations.

Uber, Lyft Spend Big to Fight San Francisco’s Transit Tax Proposal

SF Bus Uber Lyft
SF Bus Uber Lyft

SOURCE – The San Francisco Standard

Uber and Lyft are investing heavily to oppose San Francisco’s Proposition L, a ballot measure that would impose a gross-receipts tax on rideshare companies to fund the city’s Muni public transit system. Uber has contributed $750,000 and Lyft $65,000 to the campaign against the Community Transit Act, which aims to raise an estimated $25 million to address Muni’s projected $227 million budget deficit.

  • Proposition L supporters, despite having only $120,000 in campaign funds, are relying on grassroots efforts and volunteer power to promote their “Fund the bus!” initiative.
  • The “No on L” campaign argues that the tax lacks transparency and could have unintended consequences for rideshare drivers, while proponents maintain that the tax applies to companies, not individual rides.
  • Uber is reaching out to drivers for support, suggesting the measure could lead to higher fees, though Prop L supporters argue any fee increases would be at the company’s discretion.

Lyft Partners with SmartCar to Introduce A New Feature to Combat EV Driver Range Anxiety

Lyft-EV-tool
Lyft-EV-tool

SOURCE – Electrek

Lyft is partnering with API platform Smartcar to launch a new feature called “Rides in Range,” designed to alleviate range anxiety for its electric vehicle (EV) drivers. This tool ensures EV drivers only receive ride requests within their vehicle’s current battery range, addressing a top concern among Lyft’s EV driver base.

  • The feature includes a 20-mile buffer on the driver’s given range to account for various driving conditions and route challenges.
  • Smartcar’s API retrieves real-time EV battery level data, enabling proactive charging reminders when battery levels are expected to fall below 20%.
  • The “Rides in Range” feature is automatically enabled once a driver connects their EV to the Lyft app via Smartcar, requiring no additional technical upgrades.

Is This The Most Uncertain Time To Be In The Gig Economy?

Uncertain Gig Economy
Uncertain Gig Economy

SOURCE – YouTube Shorts

Times are tough for workers in the gig economy. So much so that we’re curious. Workers, do you think right now, 2024, is the worst time for workers in the gig economy? With an over-saturation of drivers and delivery people, the gig economy companies have been cutting rates. Learn more in the video and be sure to leave your thoughts in the comments!

QUICK HITS

  • A federal judge in New York has ruled that the city’s law requiring food delivery apps to share customer data with restaurants is unconstitutional, violating the First Amendment rights of companies like DoorDash, Uber Eats, and Grubhub. – Restaurant Dive
  • Bicycle Transit Systems is set to acquire BCycle from Trek, aiming to compete with Lyft to become the largest bike-share provider in the U.S. by number of cities served. – Streets Blog
  • Uber has announced a partnership with WeRide to introduce robotaxis on its platform in Abu Dhabi later this year. – TechCrunch

Must Listen Or Watch RSG Content

Here are this week’s featured podcast episode and YouTube videos: