America’s gig workers are striking for higher pay
Image: OPTO
It could be difficult finding a ride to and from the airport, or ordering a quick bite to eat in certain US cities today. Thousands of drivers for Uber, Lyft, and DoorDash are expected to go on strike across the US later this morning in an effort to increase their pay.
What’s going on?... The strike will be led by Justice for App Workers, a national coalition of more than 100,000 drivers who work for DoorDash, Lyft, and Uber. Together, the coalition’s members will walk off the job in ten major US cities – including Austin, Chicago, Miami, and Philadelphia – for two hours starting at 11 am local time.
- Uber and DoorDash have both downplayed the potential impact of the strike, saying a similar driver protest last year had no effect on business.
Driving (heh) the move: The ride-share and delivery drivers, who are considered independent contractors with fewer benefits than employees, are accusing the platforms of taking disproportionately high commissions on orders they receive.
- In 2023, Uber drivers' monthly average gross earnings fell 17.1% compared to the previous year, while those of Lyft and DoorDash drivers increased slightly but failed to outpace inflation, according to gig work analytics firm Gridwise.
Officials for Uber, Lyft, and DoorDash say their drivers are fairly compensated for their work, citing average pay rates north of $30/hour for 2023. The companies also argue in favor of keeping gig workers classified as independent contractors rather than employees, since the vast majority choose to work less than 10 hours/week and prefer the flexibility to make their own schedules.
👀 Looking ahead… Last week, Lyft announced plans to guarantee weekly earnings for drivers in an effort to lure more drivers to its platform moving forward, marking a first in the US ride-hailing industry.
📊 Flash poll: In general, do you support the current state of the gig work economy?
See a 360° view of what media pundits are saying →
Sprinkles from the Left
- Some commentators argue that the recent expansion of the gig economy is detrimental on the whole, since companies are allowed to save a bucket of money on both wages and taxes by avoiding the obligations every other employer must follow: wage-related laws as well as unemployment, Social Security, and Medicare taxes.
- Others contend that the gig economy has been a tremendous benefit for many Americans, but the companies earning billions of dollars on the back of the system should be forced to cut back on excess profits.
- “More People Are Being Classified as Gig Workers. That’s Bad for Everyone.” –Terri Gerstein, NY Times
- “What would happen if government took over the gig economy?” –Soleil Ho, San Francisco Chronicle
- “New York leads the way on gig workers’ fairness” –Hazel Dukes, NY Daily News
Sprinkles from the Right
- Some commentators argue that politicians should leave the gig economy alone, since it does a stellar job of allowing for flexible employment at fair or even above-market wages.
- Others contend that gig work doesn’t need to provide the same security as full-time employment because workers who gravitate towards those jobs do so for the freedom it provides.
- “Massachusetts rideshare drivers fight to remain independent” –Gabriella Hoffman, Washington Examiner
- “GigEconomy.Gov? A lesson in basic economics for the very confused.” –K. Lloyd Billingsley
- “Seattle helps gig workers go broke” –Zachary Faria, Washington Examiner
Share this!
Recent Discussion stories
Discussion
| February 12, 2024America’s national debt continues to climb
🏛️💰 The US is on pace to add ~$19T to its national debt by 2034, with higher interest payments set to account for a historic share of gov’t spending, per a new nonpartisan report.
Discussion
| February 9, 2024SCOTUS considers whether to disqualify Trump from the ballot
⚖️🗳️ SCOTUS heard oral arguments in a case seeking to disqualify former President Trump from the ballot due to the 14th Amendment’s ban on insurrectionists holding public office.
Discussion
| February 7, 2024More consumer debt is going into delinquency
💰 Americans are increasingly finding themselves overextended financially, per a new Fed report that found a sharp increase in the amount of US consumer debt in serious delinquency.
You've made it this far...
Let's make our relationship official, no 💍 or elaborate proposal required. Learn and stay entertained, for free.👇
All of our news is 100% free and you can unsubscribe anytime; the quiz takes ~10 seconds to complete