Thousands of Ride-Share and Food Delivery Drivers to Strike on Valentine’s Day
Ride-sharing giants Uber and Lyft, along with food delivery app DoorDash, are facing a major strike on Valentine’s Day as thousands of drivers across the United States demand fair pay. This strike call marks the first in 2019 since Uber and Lyft went public. Drivers from these platforms will stage pickets outside airports and Uber offices, according to two driver groups.
The decision to strike comes just a week after Lyft announced that it would compensate drivers if they made less than 70% of what riders paid after external fees each week. Lyft, which is set to release its quarterly results, stated that it is constantly striving to enhance the driver experience. However, the drivers, who are classified as independent contractors, accuse these platforms of taking excessively high commissions.
The Justice For App Workers coalition, which represents approximately 130,000 drivers and delivery workers, has stated that their drivers will decline providing airport rides between 11 am and 1 pm in ten major U.S. cities. “By not paying drivers a livable wage, drivers are barely able to afford the bare necessities,” said Shantwan Humphrey, a driver from Dallas, Texas.
While some drivers sign up with these platforms to supplement their income from other jobs, others rely on them as their primary source of income. “A year into algorithmic pricing, drivers have seen an incredible decrease in our pay… whatever calculations and algorithms they’re using, it’s absolutely useless,” expressed Nicole Moore, president of the California-based Rideshare Drivers United union.
According to Gridwise, a gig mobility data analysis company, Uber drivers’ monthly average gross earnings saw a significant decline of 17.1% in 2023, while those of Lyft drivers increased by 2.5%. “Driver earnings remain strong, and as of Q4 2023, drivers in the U.S. were making about $33 per utilized hour,” stated Uber. The company claimed that the majority of its drivers were satisfied with their earnings. DoorDash has yet to respond to requests for comment.
Analyst comment
Neutral news.
As an analyst, the market may experience some short-term disruption due to the strike, leading to potential delays and increased wait times for ride-sharing and food delivery services. However, the long-term impact on the market is uncertain, as it depends on whether the demands for fair pay are met and how the companies respond to the strike.
