Lyft, Uber drivers rally in LA in conjunction with nationwide strikes

A group of Lyft and Uber drivers staged a rally in Los Angeles Wednesday in conjunction with strikes being held across the country accusing the ride-hailing services of changing the way drivers are paid, leading to a sharp drop in wages.

In Los Angeles, drivers gathered at an Uber hub near the Westlake district, while drivers in some other cities conducted pickets at airports.

Organizers with Rideshare Drivers United claimed in a statement that the companies moved away from “per mile and per minute minimums” in calculating driver pay, and switched to an algorithm that resulted in the companies “often taking up to 70% to 80% of the customer fare, leaving drivers the remaining 20% to 30% to pay gas, maintenance, leaving them almost nothing to support themselves and their families.”

“I can’t remember having a harder time making money on the apps,” driver Eduardo Romero said in a statement released by the group. “I am having to work ten hour days to make the same amount I was able to do in six, and even then I’m still not making enough.”

Uber issued a statement accusing strike organizers of spreading “misinformation” about pay rates, insisting the company’s “take rate … is well below 20%,” while an increasing portion of the fares goes toward taxes and fees, along with commercial auto insurance costs.

In response to the strike, an Uber representative said, “These types of events have rarely had any impact on trips, prices or driver availability, and we expect the same today. That’s because the vast majority of drivers are satisfied — earnings remain strong, and as of last quarter, drivers in the U.S. were making about $33 per utilized hour. We also continue to act on driver feedback, adding new safety features to the app and improving our account deactivation processes.”

A representative for Lyft also said Wednesday’s job action had not had any impact on customer wait times or service levels.

“We are constantly working to improve the driver experience, which is why just this month we released a series of new offers and commitments aimed at increasing driver pay and transparency,” according to Lyft. “This includes a new earnings commitment and an improved deactivation appeals process. Now, drivers will always make at least 70% of the weekly rider fares after external fees. It’s all part of our new customer-obsessed focus on drivers.”

Lyft released a study last week concluding that the U.S. drivers using their personal vehicles earned a gross median of $30.68 — including tips and bonuses — per hour of engaged time. After expenses the median driver earned $23.46 per engaged hour, according to the report.

Eduardo Romero, vice president of Rideshare Drivers United, said the job actions are intended to send a message to legislators that more regulation is needed on ride-hailing companies. He said in California, Proposition 22, which was passed by voters in 2020 and allowed the companies to classify drivers as independent contractors, “was never about helping drivers.”

“Uber is reporting record profits, and drivers are not making any money,” he said in a statement. “Our lawmakers in the state need to know that drivers are having to make the difficult decision on whether to pay their rent or pay their car note. They cannot do both on these low fares.”

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