Posts tagged app drivers
Seattle’s new minimum wage rule undermining delivery drivers
April 25, 2024 // It’s not just restaurant owners who are being squeezed. So are drivers. Drive Forward Seattle, an app-based driver advocacy group, recently surveyed its members on the impact of the rule. A DoorDash driver identified as Marvin said, “I went from making $300 a day during the weekends to making $80 a day and that’s on a good day. It takes over 2hr to even get one order.” A driver named Sally told the advocacy group, “90 percent of the customers don’t tip since the app changed. So, they have to go back onto the app after the delivery, if they even remember to do so, in order to tip. That’s a big thumbs down.” The pushback has been so strong that the Seattle City Council has mulled repealing the rule altogether. Unions, who have struggled to organize the delivery drivers, have pushed back against the potential repeal, arguing that the wage system is working as intended.
Minneapolis Is About To Kill Ride-Sharing
April 18, 2024 // Just last month, Seattle's disastrous attempt to enact a minimum wage for app-based food delivery drivers was in the news. The result was $26 coffees, city residents deleting their delivery apps, and drivers themselves seeing their earnings drop by half. Now, the Minneapolis City Council has decided to join the fray in the multifront progressive war against the gig economy—and this time, the outcome could be even worse.
RESEARCH: Minimum Wage Laws and App-Based Workers
March 30, 2024 // Rideshare apps are not too different. They generate revenue by taking a share of the total cost paid by riders to drivers. What is less clear is how large that fee is and how that fee has changed over time and across platforms. Rather than seeking out a rigid wage floor, a fee floor could stand in for the sense of fairness across platforms of different types. If workers on platforms are truly entrepreneurs, picking and choosing when, where, and how to allocate their labor across multiple platforms, doing more to ensure that markets offer a fair share of revenue can get the job done far more efficiently than attempting to mandate any particular amount.
A Win For California’s App-Based Drivers
March 17, 2023 // In an ironic twist, California Attorney General Rob Bonta argued in favor of Prop. 22 to the Court of Appeals even though he voted for AB5 when he was an assemblyman in the California state legislature and was personally opposed to Prop. 22. The state correctly asserted that the will of the voters should prevail, and the Court of Appeals agreed. Former assemblywoman and author of AB5 cried foul about Monday’s ruling, claiming the “system is broken” and that the appeals court “chose to stand with powerful corporations over working people, allowing companies to buy their way out of our state’s labor laws.” Gonzalez, who now heads the California Labor Federation representing 1,200 unions in the state, has no such concerns about the millions of independent contractors and small businesses adversely affected by her disastrous law. From transcribers and translators to sign-language interpreters, videographers, wedding planners, regional theaters, pharmacists, the independent film industry, and more, AB5 has wielded a wrecking ball to the independent workforce in California, particularly impacting female entrepreneurs who have been disproportionately harmed by the law.