According to drivers' organizations, thousands of drivers for ride-sharing platforms Uber, Lyft, and food delivery app DoorDash plan to strike nationwide on Valentine's Day, seeking fair pay.
Uber and Lyft's First Strike Since IPO in 2019
This strike call marks the first since Uber and Lyft went public in 2019. According to the two groups, drivers plan to picket outside airports and Uber offices.
The strikes come about a week after Lyft announced it would cover the gap if drivers earned less than 70% of what riders paid after external fees each week, a first in the U.S. ride-hailing industry, aiming to attract more drivers to its platform.
Lyft, which will announce quarterly results on Tuesday, told Reuters on Monday that they are continually striving to enhance the driver experience.
Platform's Accusations of Taking High Commissions
The drivers, classified as independent contractors, allege that the platforms take disproportionately high commissions.
The Justice For App Workers coalition, with around 130,000 drivers and delivery workers, announced that its members would refrain from offering rides to and from airports between 11:00 a.m. and 1:00 p.m. in 10 U.S. cities.
Largest Strike Pushing for Equality
Jonathan Cruz, a Miami driver and member of the Justice For App Workers coalition, described it as the largest strike he's ever seen, involving thousands of drivers nationwide.
The coalition is demanding living wages, a safe workplace, fair treatment regarding deactivation, quality healthcare benefits, accessible restroom facilities, and the right to form a union. Uber stated that only a few of its drivers join such strikes, which seldom affect business significantly.
Drivers' Wages in the Fourth Quarter
Last week, Uber CEO Dara Khosrowshahi mentioned in a call with analysts that drivers in the U.S. made around $33 per hour worked during the fourth quarter.
Many drivers join these companies to earn extra money alongside their primary jobs, but some work full-time for the platforms.
Nicole Moore, president of the California-based Rideshare Drivers United union, stated in an interview with Reuters on Sunday that since algorithmic pricing began a year ago, drivers have experienced a notable decrease in their pay. She added that whatever calculations and algorithms the companies use seem entirely ineffective.
Challenges Drivers Face with Decreasing Wages
Gridwise, an analyst of gig mobility data reported that in 2023, Uber drivers' average monthly gross earnings dropped by 17.1%, whereas those of Lyft drivers increased by 2.5%.
Shantwan Humphrey, a driver in Dallas, Texas, stated that drivers struggle to afford basic necessities without a livable wage. DoorDash has not yet responded to a request for comment.
Uber stated that driver earnings remain strong, noting that as of Q4 2023, drivers in the U.S. were earning approximately $33 per hour when their services were utilized, which the majority of its drivers were satisfied with.
