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2019 Lyft and Uber drivers' strikes

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On March 25, 2019 Lyft and Uber drivers in Los Angeles, California, United States, held a strike, led by rideshare drivers union Rideshare Drivers United.[1] The strike aimed to protest low wages, long hours, working conditions, and lack of benefits. The event was planned following Lyft's initial public offering, during which time the company cut drivers' pay by 30%.

2019 Lyft and Uber drivers' strikes
DateMarch 25, 2019 and May 8, 2019
Location
United States (
)
Caused byLow pay, cut wages, no shareholding opportunities, no benefits
MethodsDemonstrations, internet activism, walkout
Parties
  • Blackcar Drivers United
  • Chicago Rideshare Advocates
  • Gig Workers Rising
  • Industrial Workers of the World
  • Philadelphia Drivers Union
  • Philadelphia Limousine Association
  • Rideshare Drivers United

A second strike took place on May 8, 2019 in anticipation of Uber's initial public offering.[2] Uber was poised to make billions of dollars, while drivers were continuing to take major decreases in pay. Rideshare Drivers United called the strike, and the strike spread to 25 major cities across the United States, and globally as well, with strikes held in India, the United Kingdom, Europe, Chile, Panama, Indonesia, Australia, Nigeria, and many other countries 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]

In addition, both companies offer various transportation services beyond peer-to-peer ridesharing. Uber offers food delivery service via Uber Eats,[3] and in select cities, Lyft offers scooter sharing (similar to Lime and Bird).[4]

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.[5]

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.[6]

Strikes

The first major 24-hour strike was held simultaneously, in Los Angeles on March 25, 2019,[7] the day Lyft went public and following a pay-cut announcement from Uber.[8][9] This prompted both companies to announced financial allocations for driver bonuses,[10] which the California based Rideshare Drivers United union said was inadequate, and still only amounted 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. [11]

After drivers’ earlier strike against Lyft, a second 24 hour strike was planned on May 8, 2019.[2] 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.[11] The May 8 date was chosen as it coincides with Uber's IPO, which was estimated to raise the company $9 billion.[12] 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.[13]

Demands

In California, Uber and Lyft drivers demanded that the companies adhere to the Drivers' Bill of Rights, which included a lower commission from fares by companies, expenses paid by the company, as well as benefits due all workers in California such as unemployment, workers' comp, sick pay, and more. Drivers believed the companies were purposely misclassifying the drivers as independent contractors, while keeping them under close control of the company, including setting their rates. Further demands included a voice on the job through a driver-led union, safety measures to be implemented protecting both driver and passenger safety, and healthcare benefits.[14][15]

References

  1. ^ Stallworth, Leo (January 30, 2019). "Rideshare drivers hoping to unionize, force companies to improve pay". KABC-TV. Retrieved May 1, 2019.
  2. ^ a b Staff, By CNN Business (May 8, 2019). "Live updates: Uber and Lyft strike for better pay". CNN. Retrieved April 1, 2022. {{cite web}}: |first= has generic name (help)
  3. ^ Carson, Biz. "Uber's GrubHub killer is finally in the US — here's the inside story on its big bet on food". Business Insider. Retrieved November 10, 2020.
  4. ^ Inc, Lyft. "Electric scooter share near you | Lyft Scooters". Lyft. Retrieved November 10, 2020. {{cite web}}: |last= has generic name (help)
  5. ^ Martin, Rachel (March 29, 2019). "Uber And Lyft Drivers Strike In California". NPR. Retrieved April 30, 2019.
  6. ^ Karlis, Nicole (April 25, 2019). "Uber drivers plan to strike next week in anticipation of IPO". Salon. Retrieved April 30, 2019.
  7. ^ Holder, Sarah. "Why L.A.'s Ride-Hail Drivers Went on Strike". Citylab. Emerson Collective. Retrieved May 1, 2019.
  8. ^ Burns, Janet (March 25, 2019). "Uber And Lyft Drivers Strike In LA After Yet Another Uber Pay Cut". Forbes. Retrieved April 30, 2019.
  9. ^ Hawkins, Andrew J. (March 29, 2019). "Lyft Drivers Strike as the Money-losing Company Goes Public". The Verge. Vox Media. Retrieved April 30, 2019.
  10. ^ "Uber and Lyft Can't Find Drivers Because Gig Work Sucks". www.vice.com. Retrieved April 1, 2022.
  11. ^ a b Gibson, Kate (April 25, 2019). "Uber and Lyft drivers plan 24-hour strike to protest pay". CBS. Retrieved April 30, 2019.
  12. ^ Rodino-Colocino, Michelle. "Uber's $9 billion IPO rests on drivers' 80-plus hour workweeks and a lot of waiting". The Conversation. The Conversation Trust. Retrieved May 1, 2019.
  13. ^ Homan, Nate. "Philly Uber, Lyft drivers join nationwide protest as rideshares go public". Metro. Metro International. Retrieved May 1, 2019.
  14. ^ Chen, Ted; Kesslen, Ben (March 25, 2019). "Uber and Lyft drivers in Los Angeles strike over pay, working conditions". NBC. Retrieved April 30, 2019.
  15. ^ Doctorow, Cory. "Uber drivers across America are going on strike -- UPDATED". Boing Boing. Happy Mutants. Retrieved April 30, 2019.
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