2019 Lyft and Uber drivers' strikes: Difference between revisions

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{{short description|Drivers strike}}

{{Use mdy dates|date=April 2019}}

{{Infobox civil conflict

| title = 2019 Lyft and Uber drivers' strikes

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| date = {{date|2019-03-March 25|MDY}}, 2019 and {{date|May 8, 2019-05-08|MDY}}

| place= United States ({{hlist|[[Los Angeles]]|[[San Diego]]|[[San Francisco]]|[[Boston]]|[[Chicago]]|[[London]]|[[Minneapolis]]|[[Philadelphia]]|[[Stamford, Connecticut|Stamford]]|[[Washington, D.C.]]}})

| coordinates =

| causes = Low pay, cut wages, no shareholding opportunities, no benefits

| methods = [[Demonstration (protest)|Demonstrations]], [[internet activism]], [[walkout]]

| status =

| result =

| side1= {{ubl | Blackcar Drivers United; <br>| Chicago Rideshare Advocates; <br>| Gig Workers Rising; <br>| [[Industrial Workers of the World]]; <br>| Philadelphia Drivers Union; <br>| Philadelphia Limousine Association; <br>| Rideshare Drivers United }}

| side2= {{ubl|[[Lyft]]|[[Uber]]}}

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A series of [[general strike]]s was coordinated on March 25, 2019 by [[Lyft]] and [[Uber]] drivers in Los Angeles, San Diego and San Francisco, [[California]], United States led by rideshare advocate group [[Rideshare Drivers United]].<ref name="stallworth">{{cite web |last1=Stallworth |first1=Leo |title=Rideshare drivers hoping to unionize, force companies to improve pay |url=https://abc7.com/traffic/rideshare-drivers-hoping-to-unionize-force-companies-to-improve-pay/5113751/ |website=[[KABC-TV]] |accessdate=May 1, 2019 |date=January 30, 2019 |archive-date=May 1, 2019 |archive-url=https://web.archive.org/web/20190501002501/https://abc7.com/traffic/rideshare-drivers-hoping-to-unionize-force-companies-to-improve-pay/5113751/ |url-status=live }}</ref> The strikes aimed to protest low wages, long hours, working conditions, and lack of benefits. The event was planned following [[Lyft]]'s [[initial public offering]]. A second strike took place on May 8, 2019 in anticipation of [[Uber]]'s initial public offering.<ref name=":0">{{Cite web |date=2019-05-08 |title=Live updates: Uber and Lyft strike for better pay |url=https://www.cnn.com/business/live-news/uber-lyft-strike-may-2019/index.html |access-date=2022-04-01 |website=CNN |language=en |archive-date=April 1, 2022 |archive-url=https://web.archive.org/web/20220401011056/https://www.cnn.com/business/live-news/uber-lyft-strike-may-2019/index.html |url-status=live }}</ref> The strike in response to Uber's [[Initial public offering|IPO]] took place in 25 major cities across the United States, and were also joined by drivers in other locations worldwide where Uber operates.

== Background ==

Both Lyft and Uber are [[ridesharing companies]]. Drivers, serve as independent contractors to Uber and Lyft and provide rides to individuals, similar to taxicab companies. Users are able to request or drive for both companies by downloading a smartphone app. Drivers are required to undergo an initial background check and [[vehicle inspection]] to make sure they are properly licensed and have a vehicle that is adequate for the company's standards. Drivers then link to a banking account so that Uber and Lyft can pay drivers for their service. A certain proportion of the rider’s fare goes to the company for administrative support while another goes to the driver for providing the trip.{{Citation needed|date=May 2019}}

In addition, both companies offer various transportation services beyond peer-to-peer ridesharing. Uber offers food delivery service via [[UberEatsUber Eats]],<ref>{{Cite web|last=Carson|first=Biz|title=Uber's GrubHub killer is finally in the US — here's the inside story on its big bet on food|url=https://www.businessinsider.com/why-uber-launched-uber-eats-2016-3|access-date=2020-11-10|website=Business Insider|archive-date=August 25, 2018|archive-url=https://web.archive.org/web/20180825143129/https://www.businessinsider.com/why-uber-launched-uber-eats-2016-3|url-status=live}}</ref> and in select cities, Lyft offers [[Scooter-sharing system|scooter sharing]] (similar to [[Lime (transportation company)|Lime]] and [[Bird (company)Global|Bird]]).<ref>{{Cite web|last=Inc|first=Lyft|title=Electric scooter share near you {{!}} Lyft Scooters|url=https://www.lyft.com/scooters|access-date=2020-11-10|website=Lyft|language=en-US|archive-date=December 29, 2018|archive-url=https://web.archive.org/web/20181229032103/https://www.lyft.com/scooters|url-status=live}}</ref>

Both companies, while having multi-billion dollar investments have alleged to be perpetually losing money, with the goal of investors not to make money, but to capture the market share of transportation services, particularly as a replacement to personal automobile use and [[mass transportation]] use. The launch of Lyft's [[initial public offering]] (IPO) and drivers' pay cuts in Early 2019 led to the first strikes occurring in Los Angeles, San Diego and San Francisco.<ref name="martin npr">{{cite web |last1=Martin |first1=Rachel |title=Uber And Lyft Drivers Strike In California |url=https://www.npr.org/2019/03/29/707908980/uber-and-lyft-drivers-strike-in-california |website=[[NPR]] |accessdate=April 30, 2019 |date=March 29, 2019 |archive-date=May 1, 2019 |archive-url=https://web.archive.org/web/20190501002447/https://www.npr.org/2019/03/29/707908980/uber-and-lyft-drivers-strike-in-california |url-status=live }}</ref>

The planned strikes came in response to Lyft's decision to go public as a for-profit corporation, while Uber followed suit later that year. The rationale is that most, if not all of Uber and Lyft's profits are income derived from drivers who work for low wages, no benefits, and who are misclassified workers, rather than earned by executives who manage infrastructure.<ref>{{cite web |last1=Karlis |first1=Nicole |title=Uber drivers plan to strike next week in anticipation of IPO |url=https://www.salon.com/2019/04/25/uber-drivers-plan-to-strike-on-the-same-day-the-company-goes-public/ |website=[[Salon (website)|Salon]] |accessdate=April 30, 2019 |date=April 25, 2019 |archive-date=April 28, 2019 |archive-url=https://web.archive.org/web/20190428134423/https://www.salon.com/2019/04/25/uber-drivers-plan-to-strike-on-the-same-day-the-company-goes-public/ |url-status=live }}</ref>

==Strikes==

The first major 24-hour strike was held simultaneously, in Los Angeles, San Diego and San Francisco on March 25, 2019,<ref>{{cite webnews |last1=Holder |first1=Sarah |title=Why L.A.’s's Ride-Hail Drivers Went on Strike |url=https://www.citylab.com/transportation/2019/03/uber-lyft-nyc-la-driver-wage-strike/585715/ |website=[[Citylab]] |date=March 26, 2019 |publisher=[[Emerson Collective]] |accessdate=May 1, 2019 |archive-date=May 1, 2019 |archive-url=https://web.archive.org/web/20190501002455/https://www.citylab.com/transportation/2019/03/uber-lyft-nyc-la-driver-wage-strike/585715/ |url-status=live }}</ref> the day Lyft went public and following a pay-cut announcement from Uber.<ref name="fobes mar 25">{{cite web |last1=Burns |first1=Janet |title=Uber And Lyft Drivers Strike In LA After Yet Another Uber Pay Cut |url=https://www.forbes.com/sites/janetwburns/2019/03/25/uber-and-lyft-drivers-strike-in-la-after-yet-another-pay-cut/#7719cbc126e4 |website=[[Forbes]] |accessdate=April 30, 2019 |date=March 25, 2019 |archive-date=May 9, 2019 |archive-url=https://web.archive.org/web/20190509023043/https://www.forbes.com/sites/janetwburns/2019/03/25/uber-and-lyft-drivers-strike-in-la-after-yet-another-pay-cut/#7719cbc126e4 |url-status=live }}</ref><ref>{{cite web |last1=Hawkins |first1=Andrew J. |title=Lyft Drivers Strike as the Money-losing Company Goes Public |url=https://www.theverge.com/2019/3/29/18286873/lyft-ipo-share-price-driver-protest-future |website=[[The Verge]] |publisher=[[Vox Media]] |accessdate=April 30, 2019 |date=March 29, 2019 |archive-date=May 1, 2019 |archive-url=https://web.archive.org/web/20190501002456/https://www.theverge.com/2019/3/29/18286873/lyft-ipo-share-price-driver-protest-future |url-status=live }}</ref> This prompted both companies to announced financial allocations for driver bonuses,<ref>{{Cite web |last=Ongweso Jr |first=Edward |date=July 8, 2021 |title=Uber and Lyft Can't Find Drivers Because Gig Work Sucks |url=https://www.vice.com/en/article/uber-and-lyft-cant-find-drivers-because-gig-work-sucks/ |url-status=live |archive-url=https://web.archive.org/web/20220401005617/https://www.vice.com/en/article/7kvej4/uber-and-lyft-cant-find-drivers-because-gig-work-sucks |archive-date=April 1, 2022 |access-date=2022-04-01 |website=Vice |language=en}}</ref> which the [[Rideshare Drivers United (California)|California based Rideshare Drivers United]] union says is inadequate, and still only amounts to a pay of $8.55 per hour. As of mid 2019, all bonuses offered were removed from drivers pay incentives, including the drivers share of Ubers’s “surge”, or Lyft’s “prime” pricing for passengers during busy commute times. The companies still charge riders the higher fares, but have stopped sharing those profits with drivers. <ref name="cbs apr 25">{{cite web |last1=Gibson |first1=Kate |title=Uber and Lyft drivers plan 24-hour strike to protest pay |url=https://www.cbsnews.com/news/uber-lyft-drivers-plan-24-hour-strike-to-protest-pay/ |website=[[CBS]] |accessdate=April 30, 2019 |date=April 25, 2019 |archive-date=May 1, 2019 |archive-url=https://web.archive.org/web/20190501003016/https://www.cbsnews.com/news/uber-lyft-drivers-plan-24-hour-strike-to-protest-pay/ |url-status=live }}</ref>

After drivers’ earlier strike against Lyft, a second 24 hour strike was planned on May 8, 2019. <ref name="settlement:0">{{cite web |last1=Isidore |first1=Chris |title=Uber settles disputes with thousands of drivers ahead of its IPO |url=https://www.cnn.com/2019/05/09/tech/uber-driver-deal/index.html> |website=[[CNN]] |accessdate=May 9, 2019 |date=May 9, 2019 | quote=Uber says it has reached settlements with a large majority of the 60,000 drivers in the United States who filed arbitration demands over their employment status. ... Uber (UBER) disclosed the settlement was disclosed in a regulatory filing with the Securities and Exchange Commission Thursday just ahead of its initial public offering. Uber (UBER) said the settlement will cost it between $146 million and $170 million. It had already set aside $132 million in anticipation of reaching a settlement. }}</ref>This strike included not just California drivers, but drivers from 25 major cities across the US, and was also joined by several other international locations where Uber operates, inciting a highly publicized worldwide strike against Uber Technologies, Inc. <ref name="cbs apr 25"/> The May 8 date was chosen as it coincides with Uber's IPO, which was estimated to raise the company $9 billion.<ref name="conversation apr 25">{{cite web |last1=Rodino-Colocino |first1=Michelle |title=Uber’sUber's $9 billion IPO rests on drivers’drivers' 80-plus hour workweeks and a lot of waiting |url=http://theconversation.com/ubers-9-billion-ipo-rests-on-drivers-80-plus-hour-workweeks-and-a-lot-of-waiting-115782 |website=[[The Conversation (website)|The Conversation]] |date=April 29, 2019 |publisher=The Conversation Trust |accessdate=May 1, 2019 |archive-date=May 1, 2019 |archive-url=https://web.archive.org/web/20190501002448/http://theconversation.com/ubers-9-billion-ipo-rests-on-drivers-80-plus-hour-workweeks-and-a-lot-of-waiting-115782 |url-status=live }}</ref> In addition to Los Angeles, San Diego and San Francisco, drivers went on strike in [[Chicago]], [[Boston]], [[Minneapolis]], [[Philadelphia]], and [[Washington, D.C.]], and were also joined by drivers from several international locations where Uber operates.<ref name="metro philly">{{cite web |last1=Homan |first1=Nate |title=Philly Uber, Lyft drivers join nationwide protest as rideshares go public |url=https://www.metro.us/news/local-news/philadelphia/philly-uber-lyft-drivers-join-nationwide-protest-rideshares-go-public |website=[[Metro (Philadelphia newspaper)|Metro]] |date=April 28, 2019 |publisher=[[Metro International]] |accessdate=May 1, 2019 |archive-date=May 1, 2019 |archive-url=https://web.archive.org/web/20190501002448/https://www.metro.us/news/local-news/philadelphia/philly-uber-lyft-drivers-join-nationwide-protest-rideshares-go-public |url-status=live }}</ref>

== Demands ==

In California, Uber and Lyft drivers demanded that the companies pay their drivers a base minimum wage of $27.86 an hour, so that pay after expenses, such as gas and toll roads, would be at least $17.22, allowing drivers to keep up with the rising cost of living in their cities.<ref name="cbs apr 25"/> Further demands include overtime pay, sick pay, accrued paid time off and paid family leave, a voice on the job through a driver-led union, safety measures to be implemented protecting both driver and passenger safety, and healthcare benefits. <ref name="nbc mar 25">{{cite web |last1=Chen |first1=Ted |last2=Kesslen |first2=Ben |title=Uber and Lyft drivers in Los Angeles strike over pay, working conditions |url=https://www.nbcnews.com/news/us-news/uber-lyft-drivers-los-angeles-strike-over-pay-working-conditions-n987276 |website=[[NBC]] |accessdate=April 30, 2019 |date=March 25, 2019 |archive-date=May 2, 2019 |archive-url=https://web.archive.org/web/20190502203427/https://www.nbcnews.com/news/us-news/uber-lyft-drivers-los-angeles-strike-over-pay-working-conditions-n987276 |url-status=live }}</ref><ref>{{cite web |last1=Doctorow |first1=Cory |title=Uber drivers across America are going on strike -- UPDATED |url=https://boingboing.net/2019/04/29/may-8.html |website=[[Boing Boing]] |date=April 29, 2019 |publisher=[[Happy Mutants]] |accessdate=April 30, 2019 |archive-date=April 29, 2019 |archive-url=https://web.archive.org/web/20190429195117/https://boingboing.net/2019/04/29/may-8.html |url-status=live }}</ref>

== Reactions ==

On May 9, 2019 the day before Uber's initial public offering and the day following the second general strike, the company announced that it reached settlements with a majority of the 60,000 drivers who filed arbitration demands over their employment status. The company said the settlement cost the company between $146 million and $170 million. In anticipation of the settlement, Uber allocated $132 million.<ref name="settlement"/>

== References ==

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[[Category:May 2019 events in the United States|Lyft and Uber drivers' strikes]]

[[Category:Labor disputesrelations inby the United Statescompany|Uber]]