JesseEwiak
Member
A fantastic deep dive from Stephen Greenhouse with his exposé of Uber and the argument that their drivers are not employees. He discusses several key points that observers of the Uber economy have notedthat there is nothing new about this employment relationship, that despite their claims, Uber and other companies control almost everything about this employment relationship, that if Uber drivers were classified as employees instead of independent contractors there is no reason why Uber would have to follow through on its claims of placing people on set schedules, and that the lack of any benefits is a major problem throughout this economy.
Before anybody jumps in, yes, taxis in a lot of places are terrible and probably don't treat their employees great. That doesn't absolve Uber of being a horrible corporation simply because you want cheap rides when you're drunk.
In any case, there is no reason why Uber, Lyft, and all these other services shouldnt be held under traditional employment law. The more we know, the more exploitative these companies seem. Lets hope politicians and the courts see this too.
http://prospect.org/article/road-nowhere-3
Before anybody jumps in, yes, taxis in a lot of places are terrible and probably don't treat their employees great. That doesn't absolve Uber of being a horrible corporation simply because you want cheap rides when you're drunk.
In any case, there is no reason why Uber, Lyft, and all these other services shouldnt be held under traditional employment law. The more we know, the more exploitative these companies seem. Lets hope politicians and the courts see this too.
http://prospect.org/article/road-nowhere-3
Parmar, 53, who immigrated to the U.S. from India at age 16, receives no benefits through Uber, but he says he is fortunate because his family gets health insurance thanks to his wifes job at a bank.
He, too, did well in his first year with Uber, but then the company dropped its New York prices by 30 percent. His pay receipts show that he used to average around $2,000 a week, driving 2 p.m. to 2 a.m. six days a weekbut by last summer, his weekly gross fell to about $1,500 a week. From that he had to subtract around $100 a week for gas, around $100 a week for tolls, and $400 a week to rent a Toyota Camry with insurance.
For Parmar, grossing $1,500 a week for 70 hours of driving comes to around $21.50 an hour, before factoring in his many expenses. That was substantially less than the $28 an hour that two researchersAlan Krueger, a Princeton economist, and Jonathan Hall, Ubers director of policy researchfound to be the median gross pay for Uber drivers in New York in an analysis of October 2014 data. (The $28 an hour they found comes to $58,000 a year for a 40-hour-a-week driver, and is far below the $90,000 a year that Uber was boasting its drivers in New York averaged in 2014.) According to Krueger and Halls Uber-backed study, the median gross pay for Uber drivers in 20 cities was around $17.50 an hourincluding $16 in Chicago, just under $17 in Los Angelesand that was before subtracting the drivers costs and before Uber further reduced fares in 48 cities in January 2015.
I went personally to Ubers office in Queens and I said, How do you justify this 30 percent cut in fares? says Parmar, who recently cut back his Uber hours to part-time so he could also drive for a friends black-car service. They said, Since weve dropped the price, were going to have more customers.
I told them, Im not selling apples, Im not selling donuts. Im driving a car. I can do 15 or 16 rides a night. If the price is 30 percent less, I get paid 30 percent less.
They said the cheaper the price, the more customers youll have. I cant drive 100 customers a night. Im not a machine. I cannot work 18 hours a day.