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Transportation Businesses The Almighty Buck

Seattle Approves Minimum Wage For Uber and Lyft Drivers (cnet.com) 122

An anonymous reader quotes a report from CNET: The Seattle City Council unanimously approved a minimum pay standard for Uber and Lyft drivers on Tuesday, the second city in the US to do so. Under the new regulation going in to effect in January, the ride-hailing services will be required to pay their drivers at least $16.39 an hour. The law, passed in a 9-to-0 vote, is modeled after one passed by New York in August 2018 that caps how many ride-hailing cars from services like Uber and Lyft can be on the street. Seattle's law will require drivers be paid at least 56 cents per minute and $1.33 per mile driven while transporting passengers. Lyft criticized the move, saying it would eliminate thousands of jobs. "The City's plan is deeply flawed and will actually destroy jobs for thousands of people -- as many as 4,000 drivers on Lyft alone -- and drive ride-share companies out of Seattle," Lyft said in a statement. "Uber may have to make changes in Seattle because of this new law, but the real harm here will not be to Uber," Uber said. "It is the drivers who cannot work and the community members unable to complete essential travel that stand to lose because of the ordinance."
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Seattle Approves Minimum Wage For Uber and Lyft Drivers

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  • At least according to Uber and Lyft.

    • unfortunately Lyft and Uber are vultures, they pick the carcasses of drivers (many of whom don't even realize they are being taken for a ride). If thousands lose their jobs it means thousands are being massively underpaid.
      • by Your Father ( 6755166 ) on Wednesday September 30, 2020 @06:10PM (#60558680)
        Well, taking their jobs away is certainly one method for ensuring they are no longer underpaid.
        • Re: (Score:2, Insightful)

          by sdinfoserv ( 1793266 )
          sort of in the same sense that abolitionists eliminated slavery "jobs"... tool.
          • Thats a dishonest comparison and you know it.
          • by Jarwulf ( 530523 ) on Wednesday September 30, 2020 @09:17PM (#60559132)
            most people use Uber and Lyft as a flexible supplement. Thats what its designed for. It was never intended as a replacement for a 9/5 with platinum healthcare and a 4 bedroom in the suburbs. Now most of them are deprived of this so a few 'lucky' people can work for yet another taxi company. At least until it shrinks or goes bankrupt because you took away what makes it distinctive and massively shrank the available driver pool ruining the service for both customers and drivers.
            • by FictionPimp ( 712802 ) on Thursday October 01, 2020 @08:50AM (#60560274) Homepage

              This has been true of generations of jobs though. When I was a teenager jobs like fast food were mostly filled by teens who used these jobs to make spending cash and learn how to enter the job market. Now we are told they are full time jobs for adults that deserve a living wage to feed their families. Those who brought up that these were not jobs for adults and not built for living wages were called monsters.

              The problem is not the jobs, it's the health of a unsustainable system that races to the bottom. A system that encourages, promotes, and supports this behavior. I've got no answers here, but this is a sign of a falling country and not a problem with Seattle or Uber.

          • I don't know how this got rated insightful. It is literally a lie. The independent contractors who driver for Uber and Lyft aren't slaves. They don't have to work for either company. They can go out and get a real job and get paid whatever they can get doing that. If Uber and Lyft are smart, they will kick all Seattle drivers and users off their platform and go on with their business elsewhere.
          • no, no one forces Uber drivers to download an app or drive for Uber. The people who are paying the drivers are the riders, and Uber is a broker (not an employer). Or that is the way it is supposed to be. The real criticism is that they don't let the drivers set their own price and then let the riders pick based on price , thus providing a more fair situation for all involved.

            • no, no one forces Uber drivers to download an app or drive for Uber. The people who are paying the drivers are the riders, and Uber is a broker (not an employer). Or that is the way it is supposed to be. The real criticism is that they don't let the drivers set their own price and then let the riders pick based on price , thus providing a more fair situation for all involved.

              If Uber was truly a broker, they wouldn't set the prices, they'd charge a fee. This follows the same fashion as a stock broker, a loan broker, an insurance broker, a real estate broker - they're hooking buyers up to sellers, but the sellers set the prices.

          • sort of in the same sense that abolitionists eliminated slavery "jobs"... tool.

            Well that's a massive trivialization of slavery. Did it seem like a convenient reach at the time?

        • by sjames ( 1099 ) on Thursday October 01, 2020 @01:27AM (#60559572) Homepage Journal

          Every time a minimum wage law is enacted, employers flood the press with horror stories of the coming jobpocalypse, and it keeps not happening because at the end of the day they need employees to make money and they want to make money.

          No employer currently is keeping people on the payroll just because. They are there because their labor is needed.

          • by Zak3056 ( 69287 ) on Thursday October 01, 2020 @12:38PM (#60561122) Journal

            I think it's a true statement that if you raise minimum wages, businesses will adjust, the sky won't fall, etc. However, it's also a true statement that the net result of a minimum wage increase may not be what you think will happen, or want to happen.

            Example: Target cuts hours after minimum wage increase [cnn.com].

            TL;DR: Total number of jobs not reduced (in some creases increased), workers paid more per hour BUT are given fewer hours, fewer qualify for benefits, and actual payroll difference is close to net 0.

            • by sjames ( 1099 )

              It is notable though that Target raised the wage voluntarily nationwide rather than being in response to a new minimum wage law. They clearly did that in a move to make a planned cut in hours more palatable and to grab some good press. The cuts were going to happen anyway and fall under my statement that no employer is keeping people on the payroll just because.

              • by Zak3056 ( 69287 )

                We agree that no business keeps overhead around just because. That said, take the Target scenario above, and make it involuntary rather than voluntary. How do you think it changes? Do you think it's more favorable to the worker? (that seems unlikely).

                • by sjames ( 1099 )

                  I suspect it would be. In what actually happened, Target identified a situation where they had excess hours they could cut, so they cut them. They also identified a PR problem that could cause, so they softened it by re-arranging the deck chairs and throwing a higher (but not too much higher) hourly rate in. Had it not been for the PR concerns, they'd have just cut hours.

                  OTOH, had the hike to minimum been mandated while they did not have an identified surplus of hours, they'd have just had to up the pay and

                  • Re: (Score:2, Troll)

                    by Zak3056 ( 69287 )

                    If you want to look at Target as a special case, fair enough--I certainly cannot disprove what you're saying, and it's not an outlandish claim. On the other hand, here's a more general case [cnn.com] that ties directly to our friends in Seattle. The story bills this as "controversial" so I'm willing to take it with a grain of salt, but most of the criticism in the story are anecdotal or assertions that simply are not backed up. It does also suggest that additional regulations went into effect around the same time w

                    • by sjames ( 1099 )

                      Even in the referenced CNN article, there were significant criticisms of that study. In in, they quote a minimum wage employee that definitely benefited ("I can pay my bills now without working 55 hours"), an employer that reports no reduction of hours, and an employer that cites other new regulations causing him headaches, but shows no sign of complaining about the minimum wage itself.

                      The linked criticism of the study points out some significant flaws in methodology and analysis. Either the study is fatall

                    • by Zak3056 ( 69287 )

                      I saw the criticisms in the linked story (and mentioned them) but as I noted, they appear anecdotal or bald statements not backed by any actual data. What I found most interesting about that study is who commissioned it. The city of Seattle likely did not set out to prove their actions were counter productive.

                      Lies, damned lies, and statistics. We know people will often lie with data to prove their points. That’s why I tend to weight heavily those studies that undermine the positions of those that comm

                    • by sjames ( 1099 )

                      It is good to have actual civil discourse. It seems that a defining characteristic of this era is forgetting how to respectfully disagree.

                      As to the study, Shame on CNN for not even referencing the paper by title! I found the link to the study in the rebuttal page linked from CNN. I can't say I thoroughly studied each line (more like I skimmed it), but there are significant confounding factors that should be studied in more depth. For example, if your hourly is increased but your hours are reduced, you may t

      • I really STILL don't get this. Are Uber and Lyft lying to people about what they are? I thought the WHOLE point of the service was something you could do in your 'spare' time to supplement your income from your real job. ( That is supposed to be the definition of a GIG). Maybe they should simply limit all drivers to under 4 hours a week to ensure no one is attempting to use this as a primary source of income. The whole idea that 'I work for someone' because I downloaded an app and have no formal agree

        • by spitzak ( 4019 )

          Are you kidding? Virtually 100% of the drivers you will meet during the day are working on this full time. In the evenings the percentage goes down some, since that is when people who actually have another job can drive.

    • Most drivers aren't sophisticated enough to calculate vehicle depreciation based on the extra wear a tear. So a lot of their "contactors" were losing money driving and not realizing it. It's governments job to regulate employers not paying a working wage... If it reduces the race to the bottom, I'm ok with that.
      • *You're* OK with it. What arrogance. How about you let the gig workers decide what's best for them, self-appointed philosopher king?
        • by Jarwulf ( 530523 )
          As a Slashdot Poster/Seattle Councilperson they know they're smarter than those dumb filthy unwashed peasants.
  • So when drivers are waiting around for work, they are paid per hour? Expect Uber cost to sky rocket. Only the upper middle class will be able to afford it.
    • These are dangerous streets for us upper-lower-middle-class types.

      Seriously though I could afford cabs before this and I'll be able to afford them after. This just restores balance to the employee/employer relationship.
    • Re:Waiting around (Score:5, Insightful)

      by quonset ( 4839537 ) on Wednesday September 30, 2020 @07:44PM (#60558918)

      So when drivers are waiting around for work, they are paid per hour?

      What do you mean, waiting around for work? These are part time jobs to be done at one's leisure. If you just happen to be going to your local Walmart you let other people know you can take them for a small fee. If you just happen to be going to the airport, even though you're not going on a flight, you can take someone there for a small fee. You work when you want to.

      The way you're presenting it makes it sound like these people are cab drivers on the clock, driving around looking for people or waiting for a call to pick someone up at a specific location and take them someplace you weren't going to. You know, employees.

      • Re:Waiting around (Score:5, Insightful)

        by Kernel Kurtz ( 182424 ) on Wednesday September 30, 2020 @08:43PM (#60559046)

        What do you mean, waiting around for work? These are part time jobs to be done at one's leisure. If you just happen to be going to your local Walmart you let other people know you can take them for a small fee. If you just happen to be going to the airport, even though you're not going on a flight, you can take someone there for a small fee. You work when you want to.

        The way you're presenting it makes it sound like these people are cab drivers on the clock, driving around looking for people or waiting for a call to pick someone up at a specific location and take them someplace you weren't going to. You know, employees.

        An excellent illustration of the difference between theory and practice.

      • Yea it will be question of how they figure who it on the clock or not. As app stands you sign in when you want and accept which fares to take. If being "signed in" means you are on clock and getting paid well that means Uber will now have to tell drivers who to pick up if they aren't proactively selecting themselves.
    • No expect Uber to stop serving Seattle.
  • by sarren1901 ( 5415506 ) on Wednesday September 30, 2020 @06:21PM (#60558722)

    But if they restrict how many drivers can be on the road at once, this will definitely cause a loss of "gigs". As far as fixing the price of labor goes, I doubt this will change much. Uber just burns venture capital money. I don't think they have actually made a profit and the pandemic has made things worse since travel across the board as dropped. This will cause them to lose even more money.

    I suppose if all these "gig jobs" go away, then people may have to settle for actual jobs and not "gigs".

    It may help someone drivers that are trying to do this full time but will likely push out the people just doing it casually.

  • by magarity ( 164372 ) on Wednesday September 30, 2020 @06:23PM (#60558724)

    Is that in effect when the ride originates from Seattle or ends in Seattle? Or one that cuts through Seattle? Or drivers whose residence is in Seattle?

    I suspect that the Seattle city council can only specify how drivers are paid only when driving in Seattle city limits. Sounds like a nightmare to apportion and audit. And how is some schmoe who drives for them supposed to verify the resulting paycheck?

    • Re: (Score:2, Insightful)

      by arbiter1 ( 1204146 )
      Welcome to Liberal run cities. You get Policies that are insane and a nightmare to implement.
      • by WillyWanker ( 1502057 ) on Wednesday September 30, 2020 @11:06PM (#60559320)

        How dare they require businesses to properly compensate their workers. How DARE they!

        • Exactly, except no one who drives for Uber or Lyft is a WORKER or an employee who is being compensated. They are individuals who are using an app on THIER phone that helps them find clients who are interested in paying them to for ride sharing, IF they were employees they would be taxi drivers and would need special license, proper meters and certified cars.

          • Except...that's bullshit. Of course they're workers. Don't be dense.

      • Yes, paying a living wage is insane. Up with slavery!

        If you can't pay a living wage, your business plan is unsustainable, and you can keester it.

    • Uber is big enough , it should IMMEDIATE ternate all services that have a geography within settle so as not to have the problem, because the city has basically outlawed their entire business model. Then all the people who would like to use those services can talk to their representatives about it. That is the way things like this get fixed.

  • by SuperKendall ( 25149 ) on Wednesday September 30, 2020 @06:29PM (#60558740)

    I guess the minimum wage, is just for the time drivers sit around waiting for a ride...

    So then on top of that, with the per minute and per mile fees, you get a payment to a driver for a 20 minute 10 mile ride of:

    (.56 * 20) + (10 * 1.33) = 24.50.

    I guess that is also on top of the hourly fee?

    No turn around, and realize that is now the minimum possible amount that someone can be charged for a ride. How does it help the poor people in the area that a ride to work, at minimum, would have to cost them 24.50 + the minimum wage for that hour?

    That totally stinks for everyone. Lyft and Uber if they continue, will be charging a minimum of $50/ride just to make money, turning Uber and Lyft into another thing only the elite get to benefit from, taking it away from the many people that used and relied on it to get around.

    Charging that much also means they cannot support nearly so many drivers, so as Lyft said, many thousands of people who used Lyft to earn extra money will be out of work or at least left with reduced incomes.

    Not sure exactly what the future holds there beyond it making Seattle a much less desirable city to live in or visit. Even with a nice market and good food.

    • The rates are NOT cumulative, they are minimums.
    • That totally stinks for everyone. Lyft and Uber if they continue, will be charging a minimum of $50/ride just to make money, turning Uber and Lyft into another thing only the elite get to benefit from

      So you want the people in the middle to also be able to prey on the people at the bottom, it should not be a thing just for the people at the top?

  • Am I the only one that is tired the endless supply of Uber and Lyft stories? Are any of these stories ever about the tech anymore, versus legality or profitability?
    • /. is far more interested in the clicks, because clicks = profit! We need a better tech news community.
      • http://notslashdot.org/ [notslashdot.org] seems to be available.

      • by zenlessyank ( 748553 ) on Wednesday September 30, 2020 @06:42PM (#60558790)

        You are free to submit stories that are better.

        See that big GREEN button at top of page that says 'SUBMIT"?

        That isn't there to impose Slashdot's will over you ya know.

        It is actually there for us registered folks to submit tech stories. So how about you stop posting about the problem and start submitting some worthy news for nerds as a solution.

        Cheers.

        • Assuming the operators actually look at the tallies, don't forget to upvote interesting stuff on the firehose.
        • by nazrhyn ( 906126 )
          Whew, thank you. The whole, "This isn't news for nerds!" shtick is so damn old at this point. Don't forget "stuff that matters", too. I like how everyone seems to know exactly what is "for" nerds and exactly what stuff matters.
      • SoylentNews spun off after the slashdot acquisition-and-redesign-one-two-punch. It is better, but more quiet.

    • Are any of these stories ever about the tech anymore, versus legality or profitability?

      If I'm starting a tech company, I might find it somewhat interesting to know if that company will be legal or profitable.

  • by stikves ( 127823 ) on Wednesday September 30, 2020 @06:58PM (#60558834) Homepage

    Like everything else in life User drivers have ones that make good money, and they have ones that struggle. Uber actually helped many of my friends who were in-between jobs, and gave them a steady enough income to pay for rent and necessities (the alternatives were much worse).

    However if you want to do Uber as your primary full-time job, you need to go big. You need to have a fleet, get a commercial license, get airport permits, and move on to the larger cars. You need to put in the effort yourself. Then, you start talking six digits.

    You cannot expect to continue driving your beat up Honda and still earn a lot.

    But like every other "job", the city want to make those who should have Uber as a temporary side job into a "good paying one". Cannot imagine in how many ways this will backfire.

    • ... beat up Honda and still earn a lot.

      Wasn't the point of Lyft/Uber as a second or part-time job? Meaning there was no pressure to pay health insurance or rent. Then it became 'lease a car and work full-time'. That big-investment model doesn't work so well for sole traders.

      ... have Uber as a temporary side job ...

      No, the city wants to prevent a corporation demanding 10 people turn-up for work when there are 4 customers. Which Uber has done because 'contractor' means they don't have to pay the 6 people missing-out.

      • the city wants to prevent a corporation demanding 10 people turn-up for work

        "Demanding"? What coercive action is Uber taking here?

      • Wasn't the point of Lyft/Uber as a second or part-time job? Meaning there was no pressure to pay health insurance or rent. Then it became 'lease a car and work full-time'.

        In our system, you have to work to have the basics. Businesses which pay less than a living wage can outcompete those which do pay a living wage. This results in a race to the bottom that only the already-wealthy can "win", and that only temporarily as what lies at the bottom of that bucket is torches and pitchforks. This is why the federal minimum wage was explicitly intended to be and was initially implemented as a living wage. Unfortunately, it was not tied to inflation, and politicians are frequently co

  • or partnership which uses a software service similar to Uber/Lyft to co-ordinate rides and manage payments. The co-op would still have to handle driver reputation, vehicle standards checking etc, but the drivers would co-own the co-op and would not be employees. Thus no-one has to pay them any particular wage, because there's no-one to pay it.
  • Than instead of kicking Uber when they are down, instead Uber could say to the govt give us bllions so we can pay 400K a year/30 K a month to someone to sit at home or we will fire thousands of workers. The Uber drivers union seems to be militant enough to give the Air hostesses union a run for their money.
  • will they pay time to the pickup? return time?

  • This is simply a thinly-disguised attempt to save the traditional taxis — and the governmental "commissions" regulating them.

    Decades ago, before the Internet, the justification for these bureaucracies was that, most riders hailing the first cab available — often far from home — the usual market forces do not work: however poor was the service, you will not be able to punish the driver by not using him again. It works with retailers and many other businesses, but not with cabs. So someone

  • by cas2000 ( 148703 ) on Thursday October 01, 2020 @02:23AM (#60559632)

    we can not free the slaves because then they would starve to death! who would feed them if they are free? nobody. That's why they should remain slaves, for their own good.

  • So this is "essential" travel, but we can't figure out a sustainable business model to provide it? This must the the same as the "essential workers" who can be ordered back to work at the risk of losing their insurance and their unemployment eligibility, but we can't actually pay them a living wage.
  • Taxi drivers are already highly exploited even without being gig workers. At the same time, taxis are too expensive for most people.

    All these laws can be expected to do is make gig transport as expensive as taxis, and consequently essentially a luxury item.

    Those who lose their livelihood will do just fine under the new UBI laws that are coming in Seattle.

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