Thousands of drivers affiliated with ride-sharing giants Uber Technologies Inc UBER, Lyft Inc LYFT, and food delivery app DoorDash DASH are reportedly set to go on strike on Valentine’s Day for fair pay.
What Happened: The drivers, classified as independent contractors, have accused the platforms of taking an unfair share of their earnings. The strike is expected to be the largest of its kind and will span across the United States, Reuters reported.
“Uber, Lyft, and delivery drivers are TIRED of being mistreated by the app companies. We're sick of working 80 hours/week just to make ends meet, being constantly scared for our safety, and worrying about being deactivated with the click of a button,” Justice For App Workers coalition which represents over 130,000 rideshare drivers and delivery workers said on its website.
The coalition said that drivers will not be offering rides to and from airports across Austin, Chicago, Hartford, Miami, Newark, Orlando, Philadelphia, Pittsburgh, Rhode Island, and Tampa on Feb. 14.
Ride-Sharing Giants React: Uber, in a statement to Reuters, downplayed the potential impact of the strike, stating that only a minority of its drivers participate in such actions. During the company’s fourth-quarter earnings call, Uber CEO Dara Khosrowshahi said that U.S. drivers earned an average of $33 per utilized hour in the fourth quarter.
Many drivers, including those who work full-time, have seen a significant decrease in their earnings due to algorithmic pricing, the report said, citing California-based Rideshare Drivers United union president Nicole Moore.
In 2023, Uber drivers’ monthly average gross earnings dropped by 17.1%, while those of Lyft drivers increased by 2.5%, according to Gridwise, a gig mobility data analytics firm. Last week, Lyft also told Reuters that it would guarantee weekly earnings for its drivers, a first in the U.S. ride-hailing industry.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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