Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Uber, Lyft, DoorDash drivers to strike on Valentine's Day for fair pay

Published 02/12/2024, 12:34 PM
Updated 02/12/2024, 07:16 PM
© Reuters. FILE PHOTO: Uber and Lyft drivers protest during a day-long strike outside Uber’s office in Saugus, Massachusetts, U.S., May 8, 2019.   REUTERS/Brian Snyder

By Akash Sriram

(Reuters) -Thousands of drivers for ride-sharing platforms Uber (NYSE:UBER), Lyft (NASDAQ:LYFT) and food delivery app DoorDash (NASDAQ:DASH) are expected to go on strike across the United States on Valentine's Day for fair pay, drivers' groups said on Monday.

The demonstrations are set to take place about a week after Lyft said it would guarantee weekly earnings for drivers, a first in the U.S. ride-hailing industry as it looks to lure more drivers to its platform.

"We are constantly working to improve the driver experience," Lyft, which is set to report quarterly results on Tuesday, told Reuters on Monday.

The drivers, considered independent contractors, have accused the platforms of taking disproportionately high amounts as commissions.

"This is the biggest strike I've ever seen, thousands and thousands of drivers ... it's going to be nationwide," Jonathan Cruz, a driver in Miami and part of the Justice For App Workers coalition, which represents more than 100,000 drivers.

Uber said only a minority of its drivers participate in such strikes, which rarely have an impact on business.

Uber CEO Dara Khosrowshahi said last week on an earnings call with analysts that drivers in the U.S. earned about $33 per utilized hour in the fourth quarter.

While many drivers sign up with these firms to supplement their income from other jobs, some drive full time for the platforms.

"A year into algorithmic pricing, drivers have seen incredible decrease of our pay... whatever calculations and algorithms they're using, it's absolutely useless," Nicole Moore, president of the California-based Rideshare Drivers United union, told Reuters on Sunday.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

In 2023, Uber drivers' monthly average gross earnings fell 17.1%, while those of Lyft drivers increased 2.5%, according to Gridwise, which analyzes gig mobility data.

"By not paying drivers a livable wage, drivers are barely able to afford the bare necessities," said Shantwan Humphrey, a driver in Dallas, Texas.

DoorDash did not immediately respond to a request for comment.

Latest comments

gonna need more than one strike to ground those mofos
Uber, Lyft, and door dash should be strictly part time only. max 20 hours a week. keep the side hustle a side hustle.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.