When companies like Uber, Lyft, and Doordash started, taxi drivers protested, wary of losing their customers. They were right to be cautious of those businesses. Those companies have grown, and the number of people who work with them has increased.
That increase has led to the formation of associations that fight for workers. One of them is Justice For App Workers, a coalition of nearly 130,000 drivers from ride shares to delivery apps.
On February 14, 2024, DoorDash, Uber, and Lyft drivers went on strike, requesting what they call “livable wages.” The coalition propagated the strike and had one goal: to protest a dramatic pay decrease.
The Strike of the App Drivers
It all began when the Justice For App Workers coalition announced on social media that its members would be and should be striking on Valentine’s Day.
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They shared the proclamation on the organization’s Facebook. It read, “This Valentine’s Day, thousands of app workers nationwide are striking for better working conditions. Let’s make Uber, Lyft, and other app companies hear our voices!”
What Was the Purpose of the Strike?
Those who joined the strike believe that companies that hire non-contract drivers are not paying them enough.
However, raising an hourly wage isn’t as simple as it seems. Understanding what app drivers demand is complicated because no rideshare company has publicly explained its payment system.
How Much Do Lyft and Uber Drivers Earn?
Both Uber and Lyft pay their drivers based on an algorithm. The percentage is not simple. Drivers in some cities, at specific times, and in various locations can make more or less than their coworkers.
Also, it’s become obvious that both companies and others like them have misled the public regarding the range that their drivers receive per ride.
Breaking It Down
Forbes says, “Uber’s US ride-hail take rate in Q3 2023 was 40%,” while Lyft’s “Q3 2023 North American take rate was 33%.”
Now, that does not mean that the driver gets 67% or even 60% of the total price of the ride. No, Uber first removes service fees and operational expenses before the driver’s percentage gets calculated. The fees also vary depending on the country or state where the driver works. However, it definitely adds up.
Companies Like Uber, Lyft, and Doordash Are Changing the Algorithms
Uber and Lyft claim they are not changing the percentage their drivers take home at the end of the day, but that’s only because they are tweaking the algorithms instead.
So, the offer still looks good to current and potential drivers on paper. But because of the changing algorithms regarding locations, cities, and times, the drivers are actually making far less than they should.
What About Good Tips?
You may think that drivers working for these companies make great tips, so they should be doing well between the ever-increasing trip rates and high-end tips.
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But you’d be semi-wrong because that’s changing too. Justice For App Workers recently announced that several apps are changing the tip prompt, which will allegedly reduce the ease with which customers can add a tip to their ride. Furthermore, news sources like the New York Post report that people are tipping less than ever before.
How Much Drivers Make Per Hour
Due to the algorithm’s ever-changing changes, it is virtually impossible to know precisely how much a delivery or rideshare driver makes per hour.
Salary.com claims they typically make around $19 per hour, but according to Business Insider, they apparently make around $33 an hour. Unfortunately, since these drivers have to pay for their own gas and tolls, the more they drive, the more they spend.
Rideshare and Delivery Drivers Don’t Enjoy Additional Benefits
While earning $19 per hour may seem like a lot, it becomes significantly less after paying for gas, tolls, and car payments.
Unfortunately, many drivers do not receive residual benefits such as health care, bonuses, or sick days like other employees.
Meanwhile, These Companies Are Making Billions
Many believe the driver’s dissatisfaction with their wages has everything to do with the fact that the companies they work for rake in billions of dollars annually.
Uber is currently worth $162.87 billion, while Lyft is valued at $6.25 billion and Doordash at $47.79 billion. So, to many, this business model is simply another way for the rich to get richer.
This Isn’t the First Drivers Strike
This recent strike was the first in several years, but not the first ever. In 2019, drivers from various rideshare companies protested for better wages.
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While the strike certainly had an effect, the drivers’ demands were not met by any of the companies they worked for.
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