The state of Connecticut is advancing a bill that would force rideshare companies like Uber and Lyft to pay drivers the bulk of what riders pay for the ride. The drivers would get 75 percent of what the rider is paying and the rideshare company would get 25 percent.
The law would mean an end to fleecing drivers and instead, paying them more fairly.
From the CT Mirror:
In written testimony submitted to the committee, Uber opposed the bill, arguing that it often pays drivers more per ride than what it receives from customers. An Uber spokesperson also warned that the passage of this bill could result in rideshare drivers, who are not employees but independent contractors with Uber, having to pay thousands of dollars more per year in insurance payments currently covered by Uber.
Uber is opposing the bill? I’m shocked!
Where’s the proof?
That first claim is a joke. I don’t think I’ve ever looked at a breakdown of a ride where I as a driver earned more than what the rider paid. I’d have to see proof of that claim. I don’t believe it.
I think riders believe drivers already earn the lion share of what they’re paying to go from point A to point B. It’s a falsity rideshare companies are not interested in dispelling. Why would they? They don’t want riders to know how much the driver actually makes.
Likewise, Nike has no interest in informing consumers how much they pay workers in Viet Nam to make a pair of Air Jordans. This is the way companies naturally operate.
How much is Uber’s insurance worth?
Uber’s last claim about drivers having to pay thousands of dollars in added insurance is a joke. Uber owns its own auto insurance company, James River Insurance Company. It covers the driver from when they first accept a ride request to when the passenger leaves the vehicle. If Uber is contending their insurance is worth thousands a year to a driver, why doesn’t it show in the fare breakdown? Also, why don’t they allow the driver to opt out of James River Insurance Company coverage so that they can obtain their own insurance?
Most rideshare drivers have rideshare gap insurance anyway.
Keeping more money in the local economy is good
If Connecticut passes this bill into law, I expect the other 49 states to pass a similar law too. Why wouldn’t they? It makes perfect economic sense. More of the money paid by the rider would go to the driver. This means more money would stay in the local economy. For that reason alone I would expect most states to enact this type of bill into law.
It just makes sense.
I drive for Uber and Lyft because it works for me. That doesn’t mean I’m getting paid fairly. Since Lyft always follows what Uber does, it’s not like you can just drive for Lyft when Uber does something negatively affecting a driver’s earnings.