gig economy
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Uber warns of temporary California shut down if it has to reclassify drivers
Uber CEO says the company may suspend service in California if the court doesn't rule in its favor.
Uber wants the government's help to establish a gig workers 'benefits' fund
Uber has been under fire for the last few years about how it classifies its drivers. At least a few states believe those drivers should be treated as full employees, with the benefits that come along with it. Uber, on the other hand, continues to argue that treating those employees as contractors gives them much-needed “freedom” to work whenever they want, while also essentially admitting that it can’t afford to pay those contractors as full employees.
Massachusetts sues Uber and Lyft for identifying drivers as contractors
It follows a similar lawsuit in California.
Uber, Lyft drivers sue NY state to speed up unemployment benefits
Uber and Lyft drivers are suing the state of New York for not providing timely unemployment and pandemic benefits.
California sues Uber and Lyft for allegedly misclassifying drivers
California is putting AB5 to work as it sues Uber and Lyft for classifying drivers as contractors rather than employees.
UK watchdog 'provisionally' clears Amazon investment in Deliveroo
After months of deliberation, the UK's Competition and Markets Authority (CMA) has "provisionally" cleared Amazon's involvement in a funding round worth $575 million.
Uber built a tool to help its drivers find work at other companies
Drivers can access Work Hub through the Uber Driver app. While Work Hub is only available in the US, Uber says it is partnering with the online retailer Ocado to help UK drivers find work too. Work Hub should help some Uber drivers, but there’s a good chance that for most, it won’t be enough.
Instacart workers go on strike after rejecting mild concessions
Instacart hasn't had success trying to avert a strike over a lack of COVID-19 protections. The Gig Workers Collective has declared that a shopper strike is "still on" after asserting that Instacart's concessions were inadequate. A change that sets the tip default to a customer's previous amount will likely offer "no meaningful benefit," the shoppers said, as that previous amount will frequently come from the pre-outbreak era. There's still no sick pay for workers who have to stay home due to health conditions that put them at high risk. The company also left hazard pay "completely unaddressed," according to the objectors -- an average pay per order of less than $10 still leaves shoppers "risking their lives for pocket change."
NY court rules Postmates couriers are entitled to unemployment benefits
Gig economy workers in New York won a significant battle this week after the state's Court of Appeals ruled in their favor against Postmates. Supporting a previous state decision, the court said Postmates couriers should be considered employees for the purposes of unemployment insurance. Moving forward, the company must support its contractors by paying into New York's Unemployment Insurance Fund on their behalf.
Instacart workers will strike over lack of COVID-19 protections
Fed up with the company's response to the coronavirus, Instacart workers announced today that they'll go on strike beginning Monday. They will not return to work until their demands are met, Instacart Shoppers and the Gig Workers Collective wrote in a blog post. Their dissent is not uncommon. It's reflective of growing dissatisfaction among employees, especially gig workers, who must continue working in public settings while corporate employees work from the safety of their homes.
Uber Eats waives delivery fees for over 100,000 independent restaurants
In response to the coronavirus pandemic and its impact on the restaurant industry, Uber Eats is waiving delivery fees for over 100,000 independent restaurants across the US and Canada. It's the latest move by gig-economy businesses like Uber, Lyft and Grubhub to help alleviate some of the financial challenges that the coronavirus outbreak presents.
Uber, Lyft will compensate drivers affected by coronavirus outbreak
The coronavirus outbreak is affecting many workers, but it could hit those in the gig economy particularly hard when many of them don't get sick leave or other benefits. Those companies may help soften the blow for some of their workers, though. To start, Uber said in a statement to Engadget that it would compensate drivers worldwide for both Uber and Uber Eats if they're either infected by the coronavirus or quarantined by a public health agency for "a period of up to 14 days." Drivers have already received compensation in "some markets," Uber said, alluding to a Bloomberg report that it had compensated quarantined drivers in Mexico and the UK.
Judge says Instacart likely misclassified California workers
California's recently enacted AB5 was aimed at improving working conditions at gig economy companies like Instacart, and it appears to be one of the first firms in the crosshairs. A San Diego county judge has granted a preliminary injunction barring Instacart from misclassifying its grocery shoppers as contractors instead of employees, finding that the state had a "probability of success" in its case against the company's parent Maplebear. The "handwriting is on the wall," the judge said. Whether or not AB5 was the right policy, it was based on a state Supreme Court decision from two years ago and became law -- Instacart couldn't pretend that it was unaware of (or couldn't adjust to) the new rules.
Activists form nonprofit to fight gig worker exploitation
Gig workers are often at odds with the companies through which they find work, whether it's over how well they're paid or how they're treated. A gig worker and activist duo are attempting to help improve working conditions for contractors across the board. Vanessa Bain and Sarah Clarke created the Gig Workers Collective, which has a pending application to become a 501(c)(3) tax-exempt nonprofit organization.
Instacart employees in Chicago are the first to unionize in the US
Gig economy workers may have won an important, if conditional, battle in their push for better conditions. Instacart employees in the Chicago suburb of Skokie have voted to unionize through their local branch of United Food and Commercial Workers, giving them more collective bargaining power than they had before. The move only covers 15 staffers who operate at the Mariano's grocery store, but it's the first time Instacart employees have unionized in the US and could affect issues like turnover rates, work pacing and mysterious employee rating algorithms.
Uber and Postmates sue California over gig worker law
It didn't take long for tech companies to take legal action in hopes of thwarting California's gig economy labor law. Uber and Postmates have filed a lawsuit in an attempt to block AB5, which makes it harder for companies to define workers as contractors, just as it takes effect. They (along with two workers, Lydia Olson and Miguel Perez) claim the law violates both US and state Constitutions by denying the guarantees of equal protection. The companies alleged that the bill, and its sponsor Lorena Gonzalez, unfairly singled out the gig economy while letting other industries off the hook.
Uber passengers in California can 'favorite' drivers
Uber is getting some new features in California. While the favorite driver option has been live in the UK for some time, passengers in CA will, from early 2020, have the option to bookmark drivers they'd like to ride with again. Drivers will also now be given more trip information upfront -- such as a passenger's ultimate destination -- allowing them to make more informed decisions about the rides they accept. Finally, drivers will be able to accept only the trips they want to take without it affecting their Uber Pro status.
Washington, DC sues DoorDash for allegedly misleading users about tips
DoorDash's change in tipping policy has come too late to avoid legal repercussions. The District of Columbia Attorney General has sued DoorDash over claims it not only stiffed couriers (aka Dashers) through its tipping practices, but misled customers about where tips go. As DoorDash used tip money to replace a courier's base pay rather than add to it, that worker's pay wouldn't change for any tip under $10 -- but customers didn't know that, according to the District. The messaging in DoorDash's app and FAQ was reportedly "ambiguous, confusing and misleading," leading customers to believe that delivery people were being paid extra like "any reasonable consumer" would expect.
Tipping point: The gig economy hits delivery drivers in their wallets
Tipping is ubiquitous to the American service industry with consumers encouraged to give "a little something extra" to their waiters, bartenders, and baristas, dry cleaners, dog-walkers and delivery drivers. But it wasn't always like this. The practice of tipping started in England and made its way to our shores at the turn of the 18th century where it met strident social opposition. Deemed the "vilest of imported vices" by an 1899 NYT op-ed, anti-tipping sentiment reached its peak in 1915 when six states outlawed the practice outright. Since then, tipping has grown into the status quo, so much so that restaurants are allowed to pay their tipped staff less than the federal minimum wage and nobody even bats an eye, though the practice is once again falling out of favor -- this time at the hands of the gig economy.
California governor signs labor law meant to fix the gig economy
It was really just a matter of time, but it's now official: California Governor Gavin Newsom has signed the state's Assembly Bill 5 into law. The measure is intended to reclassify many gig economy workers as employees by applying a test that determines whether or not they qualify as contractors. If they do, they have to be free from the control of a company, handle work beyond the typical scope of that company's business and routinely engage in an independently-formed business similar to the work they perform. In theory, this will force many ridesharing and courier companies to offer rudimentary labor rights like minimum wage, overtime and paid leave.
