Lyft Inc's quarterly revenue rose 95% and topped market expectations on Tuesday as the ride-sharing company reported its first results after going public, days before rival Uber plans its own IPO. There's just one problem: Uber says that when it comes to its drivers, operating in 90 European Union cities, the new rules do not apply.
An Uber spokeswoman declined to speculate on the possible effects of a strike, and Lyft did not respond to a request for comment Monday.
Rideshare drivers are planning to strike and rally again - this time, ahead of Uber's impending IPO. Take, for instance, the 13,600 drivers in MA and California who went to court in a class-action push to be considered employees.
The New York City Taxi Workers Alliance said its members voted not to drive for Uber or Lyft between 7am and 9am on Wednesday. Activists have suggested Uber may remove surge pricing for riders to make it look like the strike is not effective, or raise surge pricing on the drivers' apps to incentivize them to break the strike. "Our picket and rally will show that ride-share drivers will not be invisible- we demand justice".
"In the beginning, it was 25 percent and now it's nearly 49 percent", he said.
Statement From Uber Spokesperson " Drivers are at the heart of our service─we can't succeed without them─and thousands of people come into work at Uber every day focused on how to make their experience better, on and off the road.
A Lyft representative told CNet that drivers' hourly earnings have increased in the last two years.
Demonstrations took place in 10 USA cities, including Chicago, Los Angeles, New York, San Francisco and Washington, as well as some European locations like London.
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Uber and Lyft drivers in multiple cities nationwide launched strikes and demonstrations Wednesday to lobby for better pay and transparency.
But for almost as long as Uber has argued its drivers are independent contractors, drivers and critics have offered a counter argument: that drivers are employees deserving of minimum wage, paid leave, and unemployment benefits.
Mishel also pilloried the notion that gig economy workers - independent contract or freelance workers - were becoming a significant economic force.
Other cities are expected to join the protests in the coming hours. Uber's very existence depends on retaining drivers, because without them, it doesn't have customers.
To be sure, many drivers from Uber are still earning more than they could get in other blue-collar jobs in India.
Both Uber and Lyft have built their businesses on the backs of drivers. Uber settled the six-year-old case in March for $20 million but will continue to classify the drivers as independent contractors.
"We need as many people on board with this as possible", said Laurel Hirschmann, a driver based in the Miracle Mile area. As the ride-hailing services have expanded, they also have become critical for public transit agencies in filling service gaps or providing paratransit services. The Uber app indicated fares were higher in London during a rainy morning rush hour due to increased demand. In comparison, Uber - which could be valued at about $90 billion - had 75 million riders and 3.9 million drivers in 65 countries. Despite the massive valuations, neither company has a clear path to profitability.