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This City Just Voted to Give Minimum Wage of $30 to Uber and Lyft drivers
Fast Company; KFI Radio 640 LA ^ | 8-8-2019 | Adele Peters

Posted on 08/08/2019 3:11:00 PM PDT by morphing libertarian

BY ADELE PETERS

Los Angeles county, where the minimum wage is currently $14.25 an hour, studies suggest that Uber and Lyft drivers often make far less. In El Monte, an industrial city east of Los Angeles, the city council just unanimously voted to change that, telling city officials to begin drafting a law that would guarantee drivers a minimum of $30 an hour.

While other cities have set minimum wages for ride-hail drivers, this would be the highest in the country, and it comes after pressure from the Mobile Workers Alliance, a project from the Service Employees International Union, Local 721. “Currently, workers who are working for companies like Uber and Lyft are working lots of hours and still making less than minimum wage,” says Coral Itzcalli, an organizer for the union.

“On average, we hear from workers that they’re working daily 12 to 16 hours a day. That translates to tired people behind the wheel on already congested public roads. And no one should put their life or the life of someone else at risk by being so tired behind the wheel just because they’re trying to earn the pennies on the dollar that Uber and Lyft is paying them.”

The pay might sound generous, but it’s intended to provide drivers with $15 an hour to cover the costs of operating their cars and another $15 in take-home pay. Itzcalli says that drivers have to cover the cost of gas, frequent oil changes and other maintenance because they’re driving so many miles, and extra insurance because standard car insurance doesn’t cover ride-hail drivers. Many drivers have to work a week and a half just to cover the basic operating expenses of driving. A recent study from the Economic Policy Institute found that the average hourly wage for Uber drivers was just $11.77. The union’s own surveys suggest it’s actually closer to $8-9 an hour in the area.

“California is one of the most expensive states to live in,” says Itzcalli. “Housing is very, very expensive. Many of these folks are just one paycheck away from being homeless. We already have a homeless crisis. It is something that we all feel is urgent, because we cannot continue to allow these companies to drive our communities to the ground.”

City officials will have 120 days to develop the new ordinance, which will likely require another vote. Lyft, in response, offered a boilerplate statement about working to increase drivers wages. Uber did not respond by press time. In the meantime, a separate state bill is making its way to the governor that would force companies like Uber and Lyft to classify drivers as employees, not independent contractors.

ABOUT THE AUTHOR

Adele Peters is a staff writer at Fast Company who focuses on solutions to some of the world's largest problems, from climate change to homelessness. Previously, she worked with GOOD, BioLite, and the Sustainable Products and Solutions program at UC Berkeley, and contributed to the second edition of the bestselling book "Worldchanging: A User's Guide for the 21st Century." More


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: lyft; minimumwage; uber
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To: morphing libertarian

Instrumental in starting Uber was the brother of Rahm Emanuel, the scumbag ex-mayor of Chicago.

One of the first achievements was to basically screw the licensed cab drivers out of their investment in their medallions. In pre-Uber New York they were sold for hundreds of thousands of dollars and post-uber saw their value plummet.


41 posted on 08/08/2019 3:57:29 PM PDT by arrogantsob (See "Chaos and Mayhem" at Amazon.com)
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To: morphing libertarian

$3.89 a Gallon? How many Teslas on the road? Lots of stop and go in CA. Oh, it also means the fares will go up too. Ahhhhhh, the days of 5 cent candy bars, 15 cent hamburgers, and a great salary of 5K a year that now needs 50K to buy what 5K did. LOL, better invest in wheel barrels.


42 posted on 08/08/2019 4:02:19 PM PDT by Bringbackthedraft
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To: PGR88

“I would make it $40/hour, and then everyone could be above average.”
*

I’m guessing that the big cab companies are behind this. Until Uber and Lyft came on the scene the majors such as yellow and checker had a lock on the taxi business especially at airports and downtown areas.


43 posted on 08/08/2019 4:02:50 PM PDT by snoringbear (,W,E.oGovernment is the Pimp,)
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To: morphing libertarian

“This City Just Voted to Give”

Yeah, “give”.


44 posted on 08/08/2019 4:03:59 PM PDT by VanDeKoik
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To: morphing libertarian
"my first full time job and wore a tie, 3.10 at General Dynamics circa 1967. I think the min wage was 1.25"

My first job was part-time, after school when I turned 16 in 1963. I worked in a department store in downtown Rochester, NY. Can't remember what the minimum wage was back then. When I graduated high school in 1965, I went to work for the county. I brought home $50 after taxes. I felt rich, even though I had to pay $100 a month room and board back then.

45 posted on 08/08/2019 4:04:54 PM PDT by mass55th ("Courage is being scared to death, but saddling up anyway." ~~ John Wayne)
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To: morphing libertarian

Don’t go south of the tracks either under any circumstances, South El Monte is much worse, if you can believe that


46 posted on 08/08/2019 4:06:02 PM PDT by eyeamok
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To: morphing libertarian

ps,

in the Early 70’s there was a Motocross Track on Garvey, right next to the wash at Rosemead on the south side of the street, directly across from La Victoria, I used to Race there, there was also one in Alhambra on Mission near Fremont!!


47 posted on 08/08/2019 4:08:15 PM PDT by eyeamok
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To: morphing libertarian

I was always under the impression that Uber and Lyft drivers are private contractors. Am I wrong?


48 posted on 08/08/2019 4:10:19 PM PDT by 2111USMC (Aim Small Miss Small)
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To: morphing libertarian
ABOUT THE AUTHOR

Adele Peters is a staff writer at Fast Company who focuses on solutions to some of the world's largest problems, from climate change to homelessness. Previously, she worked with GOOD, BioLite, and the Sustainable Products and Solutions program at UC Berkeley, and contributed to the second edition of the bestselling book “Worldchanging: A User's Guide for the 21st Century.”

This chick checks off all the feel good boxes on any SJW resume.

She contributed to a book!

UC Bezerkeley and their Sustainable Products and Solutions program!

Writes for Fast Company!! And can interview a union official!

And this alone is enough for me to know that any screed she writes will be ultra-leftist and pushing an agenda, this time from a union that wants more forced memberships.

That Uber (with their leftist leadership) needs a better way to pay their drivers is not much of a headline, especially now that the founders all cashed out.

If the fix includes union membership as an answer, let's look elsewhere.

49 posted on 08/08/2019 4:11:18 PM PDT by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
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To: morphing libertarian

Clearly the city fathers wish to destroy Uber and Lyft, as the tremendous increase in fare cost would eliminate the viability of both businesses. They don’t care about these drivers, they only care about their authoritarian power, as they consistently destroy jobs and economic opportunities. Why anyone thinks otherwise is the only question left.


50 posted on 08/08/2019 4:13:14 PM PDT by Richard Axtell
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To: webheart

They are attempting (unsuccessfully) to repeal the law of supply and demand.
Creating lots of new hamburger flippers in the process.

On the plus side, they all feel much better about themselves.


51 posted on 08/08/2019 4:15:57 PM PDT by ChildOfThe60s (If you can remember the 60s........you weren't really there)
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To: morphing libertarian

When I was a delivery man for Domino’s in the early ‘90s my base pay was under $4/hour. Tips were sometimes ok, often not. (Hint: rich people do NOT tip very well, even if pizza man drove up hill in a blizzard) My beloved 1966 Dodge Dart was damaged in the lot because another driver who was in worse financial shape backed into my parked car. I let it slide. Domino’s paid only a few dimes for a mileage. Gas was cheaper, but still, I really just about broke even despite driving an inexpensive car.

Still, at least I got all the bad pizza I wanted and then some. That made it worth it, for a while.

It is hard for me to cry for the Uber and Lyft people.


52 posted on 08/08/2019 4:17:00 PM PDT by Dr. Sivana ("...a choice between Woke-fevered Democrats and Koch-funded Republicans is insufficient."-Mark Steyn)
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To: 2111USMC
I was always under the impression that Uber and Lyft drivers are private contractors. Am I wrong?

You're correct. The drivers are ICs, at least nominally. Apparently the goal of this proposal is to provide gross earnings that will cover $15/hr. in costs, and leave $15/hr. as a net profit for the driver. Problem is that such a rate will be incompatible with Uber/Lyft's existing price structure, so they will just delete the El Monte zip code(s) from the app. El Monte just won't have Uber or Lyft as transportation options if this passes, I would guess.
53 posted on 08/08/2019 4:24:39 PM PDT by Milton Miteybad (I am Jim Thompson. {Really.})
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To: webheart
Uber drivers would go back to whatever they were or were not doing before.

Pilots for small commuter airlines.

54 posted on 08/08/2019 4:32:44 PM PDT by Don Corleone (Nothing makes the delusional more furious than truth.)
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To: morphing libertarian

Way to kill those businesses.


55 posted on 08/08/2019 4:35:26 PM PDT by Kozak (DIVERSITY+PROXIMITY=CONFLICT)
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To: kaboom

Yup. Nice geofence around the town.
Gonna be a long wait for an Uber....


56 posted on 08/08/2019 4:37:54 PM PDT by Kozak (DIVERSITY+PROXIMITY=CONFLICT)
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To: texas booster

“Adele Peters is a staff writer at Fast Company who focuses on solutions to some of the world’s largest problems, from climate change to homelessness”

I bet this chick couldn’t change a lightbulb if she had too, but can solve Climate Change.


57 posted on 08/08/2019 4:40:15 PM PDT by Kozak (DIVERSITY+PROXIMITY=CONFLICT)
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To: 2111USMC

I thunk there was court case about the, but can’t remember for sure. maybe someone else.


58 posted on 08/08/2019 4:40:20 PM PDT by morphing libertarian ( Use Comey's Report, Indict Hillary now; build Kate's wall. --- Proud Smelly Walmart Deplorable)
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To: texas booster

I never see a minimum wage article that opposes the government setting pay for private businesses.


59 posted on 08/08/2019 4:41:06 PM PDT by morphing libertarian ( Use Comey's Report, Indict Hillary now; build Kate's wall. --- Proud Smelly Walmart Deplorable)
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To: morphing libertarian
"City to give....."

The "City" doesn't have ANYTHING to "give"!!!!!

If they mean "Force Employers to Pay", it means the City Mob Bosses are getting their cut from the Cab Union Mob Bosses.

60 posted on 08/08/2019 4:43:09 PM PDT by G Larry (There is no great virtue in bargaining with the Devil)
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