[California] Uber and Lyft drivers criticise ‘slap in the face’ pay cuts

[California] Uber and Lyft drivers criticise ‘slap in the face’ pay cuts
20 May 2021

California’s Uber and Lyft drivers have been angered by and frustrated about the effects of Proposition 22 since the controversial state law went into effect in January, following an aggressive and pricey lobbying campaign to push the ballot amendment through, The Guardian reports.

One of the most recent changes to negatively impact drivers is a reduction in mileage rates from Los Angeles international airport, a key source of income and rides for many drivers.

Alvaro Bolainez - a driver for Uber and Lyft in the Los Angeles area - told Business Insider that the airport mileage rate for Uber was reduced from 65 cents to 32 cents a mile and that Uber had removed the multiplier option which had allowed drivers to set their own prices for rides.

“No driver in their right mind will go to LAX for 32 cents per mile,” Mr Bolainez said. “They took everything away, the ability to see what passenger we’re getting and the ability to set our own prices, the multiplier.”

Prop 22 was written by Uber, Lyft, DoorDash and Instacart and carved out an exception from assembly bill 5 (AB 5), a landmark labour law in California that would have forced ride-share and delivery companies to treat drivers as employees. Under prop 22, workers at gig companies continue to be classified as contractors, without access to employee rights such as minimum wage, unemployment benefits, health insurance and collective bargaining.

An Uber spokesperson said the airport changes and rebalancing rates formed part of a pilot program to improve airport pickups for riders and drivers.

The multiplier option was provided to drivers by Uber in January last year in an attempt to prove drivers are independent contractors by granting them more flexibility as Uber and other gig companies were fighting to exempt their workers from AB 5. According to reporting in the San Francisco Chronicle, Uber argued the reversal was due to drivers turning down too many rides.

Though the multiplier option and features for drivers to turn down unwanted rides have largely been revoked, Mr Bolainez contends that passenger fees were increased by Uber and Lyft - despite claims from app companies before Prop 22 that such fees would not go up - and that drivers are not being fairly paid proportions of fee increases. He claimed Lyft has implemented similar fee structures, charging customers prime-time surge fees while paying drivers small proportions of those additional fees.

“It’s not fair that they get 60-70 per cent of the fare when we do everything. We risk our life, we pay for insurance, we pay for the car and maintenance, we pay for everything,” Mr Bolainez added.

The Guardian has further details of drivers’ concerns.

(Links and via original reporting)

California’s Uber and Lyft drivers have been angered by and frustrated about the effects of Proposition 22 since the controversial state law went into effect in January, following an aggressive and pricey lobbying campaign to push the ballot amendment through, The Guardian reports.

One of the most recent changes to negatively impact drivers is a reduction in mileage rates from Los Angeles international airport, a key source of income and rides for many drivers.

Alvaro Bolainez - a driver for Uber and Lyft in the Los Angeles area - told Business Insider that the airport mileage rate for Uber was reduced from 65 cents to 32 cents a mile and that Uber had removed the multiplier option which had allowed drivers to set their own prices for rides.

“No driver in their right mind will go to LAX for 32 cents per mile,” Mr Bolainez said. “They took everything away, the ability to see what passenger we’re getting and the ability to set our own prices, the multiplier.”

Prop 22 was written by Uber, Lyft, DoorDash and Instacart and carved out an exception from assembly bill 5 (AB 5), a landmark labour law in California that would have forced ride-share and delivery companies to treat drivers as employees. Under prop 22, workers at gig companies continue to be classified as contractors, without access to employee rights such as minimum wage, unemployment benefits, health insurance and collective bargaining.

An Uber spokesperson said the airport changes and rebalancing rates formed part of a pilot program to improve airport pickups for riders and drivers.

The multiplier option was provided to drivers by Uber in January last year in an attempt to prove drivers are independent contractors by granting them more flexibility as Uber and other gig companies were fighting to exempt their workers from AB 5. According to reporting in the San Francisco Chronicle, Uber argued the reversal was due to drivers turning down too many rides.

Though the multiplier option and features for drivers to turn down unwanted rides have largely been revoked, Mr Bolainez contends that passenger fees were increased by Uber and Lyft - despite claims from app companies before Prop 22 that such fees would not go up - and that drivers are not being fairly paid proportions of fee increases. He claimed Lyft has implemented similar fee structures, charging customers prime-time surge fees while paying drivers small proportions of those additional fees.

“It’s not fair that they get 60-70 per cent of the fare when we do everything. We risk our life, we pay for insurance, we pay for the car and maintenance, we pay for everything,” Mr Bolainez added.

The Guardian has further details of drivers’ concerns.

(Links and via original reporting)