Here’s what Uber, Lyft, and DoorDash’s wins over gig-worker status look like so far -Dlight News

Here's what Uber, Lyft, and DoorDash's wins over gig-worker status look like so far

After an appeals-court decision this week, California ride-hailing drivers and other gig workers will remain independent contractors rather than employees for the foreseeable future — a win for gig companies that they will surely try to replicate across the country and beyond. Gig companies like Uber Technologies Inc. UBER, -2.90%, DoorDash Inc. DASH, -1.79% , Lyft Inc. LYFT, +4.79% and Instacart have spent more than $200 million to put Proposition 22 on the state ballot in 2020, saying in several television, radio and other ads that app-based drivers and couriers will get new benefits, and yet they have their own Can set a schedule. More than half of the state’s voters, or 58%, voted for the measure. A judge ruled it unconstitutional in 2021, though there was no emergency stay and it remained in effect. This week, an appeals court in San Francisco reversed that decision, mostly in favor of Prop. 22 affirmed — although the issue is likely to be appealed to the California Supreme Court. Prop. 22 promised to give gig workers some benefits they didn’t have before, including the ability to qualify for health care stipends and disability insurance. It also promised a guaranteed wage of 120% of the minimum wage for the time a gig worker actually delivers or completes a ride. Prop. 22 In the more than two years since it went into effect, companies and some workers’ groups have released conflicting studies about its effects. Recently, companies — without disclosing many details — say the law has helped gig workers, while workers themselves have given it mixed reviews. See: Uber, Lyft drivers say new California law isn’t addressing their healthcare needs Eduardo Romero drives for Uber and Lyft in the Los Angeles area and is a board member of Rideshare Drivers United. He has been a ride-hailing driver since 2017, and driving for apps has been his only source of income for the past three years, he told MarketWatch on Thursday. Although he says that prop. After 22 “things changed for the worse”, he admitted that he now receives a healthcare stipend, which amounts to $1,274 every three months. “It helps,” Romero said. “But now the cost of living is much higher, and companies are charging passengers more but we are getting less drivers.” Uber and Lyft, under pressure from shareholders to turn a profit, have raised the price of their rides over the past two years. The companies’ “take rate,” or the amount they charge per ride, also increased, according to their earnings reports. Romero said he used to drive 40 hours a week to earn about $1,200. Now he has to drive 48 to 52 hours to bring that much, he said — and that’s before expenses like fuel, car insurance and depreciation on his car. This is why he also said that drivers “are not really contractors. We cannot negotiate our rates and payments. “I am very disappointed that the Court of Appeal decided to help the corporations,” he added. See: Uber shows drivers lower fares than passengers, blames California law Also: Uber and Lyft drivers net less than $7 an hour after a California law passed, a driver-led study found. Works and thinks. “Base. 22 is correct.” Ron, who asked that only his first name be used for this story for fear of retaliation, said he doesn’t need the healthcare stipend because he gets healthcare through his wife’s job. But he also said, “To be honest, I don’t know How can anyone earn a poverty-level income doing this work in California.” Meanwhile, some California voters who voted for Prop. 22 because they felt it would help mislead gig workers, according to several reports and polls, are clear. that they are now paying more for rides because Uber and Lyft have passed on at least some of the cost of providing driver benefits to their customers. The companies are working on a per-ride fee called the “California Driver Benefit Fee.” For Uber, It’s 30 cents in San Francisco and varies in other parts of the state. For Lyft, it’s 75 cents a ride in Los Angeles, but it’s unclear if the price varies by city. Uber said it plans to launch the ride in Calif. in the third quarter of 2022. Nia provided $95 million in healthcare stipends to drivers, but a spokeswoman declined to say what portion of that was paid for by the company and what portion came from rider fees. According to a company spokesperson, DoorDash offers its couriers a prop. 22 Costs of providing benefits not passed on to consumers. But the company has a “small regulatory fee” for merchants in the state, the spokeswoman said, adding that some customers may see regulatory fees because some municipalities have implemented price caps. Lifte prop. 22 declined to answer any questions from MarketWatch about benefits and costs. Instacart did not return a request for answers to questions from MarketWatch. The war is not over. Prop. The plaintiffs in the lawsuit against 22 — four drivers and the Service Employees International Union — will likely appeal the court’s decision this week. And some workers and union officials alike see a glimmer of hope that the appeals court also struck down a provision of the law, which would require a seven-eighths vote in the state legislature to amend. They say that paves the way for lawmakers to introduce a bill to allow gig workers to bargain collectively. “This can give us a voice,” said Romero, an Uber and Lyft driver. But in the next breath, he also said he doubted “that much will change.” See: Uber and Lyft drivers in Massachusetts are fighting for the right to unionize

Source link