Seattle passes minimum wage rate for Uber and Lyft drivers

Lissetti

Rebel Honey Badger
Article Manager
Moderator
Seattle adopts minimum wage for Uber and Lyft drivers

bigstock-Chicago-Circa-June-Ube-308733928.jpg



Seattle became the second big city in the nation to establish a minimum wage standard for Uber and Lyft drivers on Tuesday.

The Seattle City Council unanimously voted to adopt new regulations designed to ensure Uber and Lyft drivers earn the city’s $16.39 per hour minimum wage.

The new law requires transportation network companies to pay drivers at least $0.56 per minute when there is a passenger in the vehicle as well as a per-mile rate to cover expenses. The city says that standard will ensure drivers earn at least Seattle’s minimum wage, assuming they spend about 50% of their time waiting for rides or driving to pick up passengers. The minimum compensation standard takes effect on Jan. 1.

The legislation is modeled after a minimum wage standard New York City passed in 2018, though Council Chair Teresa Mosqueda dismissed the connection during the hearing. Seattle hired two researchers who advised New York City officials on their legislation to recommend a minimum wage standard when crafting the ordinance approved Tuesday. Uber and Lyft backed a separate study by Cornell researchers that produced significantly different findings. The competing studies highlight the complexities of establishing a minimum wage for gig workers.

Uber and Lyft have long said New York should serve as a cautionary tale for Seattle. Increased prices and reduced ride activity in New York followed the passage of the legislation. The apps now restrict the number of New York drivers who can work at a time, leading some drivers to sleep in their cars so that they don’t miss a chance to log-on, Vice reports.

“We would ask the city not to pass this legislation and go back to the drawing board and not copycat failed systems from other cities,” said Michael Wolfe, director of the Uber-backed group Drive Forward, during public comment ahead of Tuesday’s hearing.

But advocates for the minimum wage, like the Teamsters 117 and affiliated Drivers Union, say it is a necessary protection for drivers. “We are putting our values of wanting to lift up every worker and particularly every worker in this city into action,” Mosqueda said during the hearing.

The minimum wage is part of Seattle Mayor Jenny Durkan’s “Fare Share” program introduced in September, which increased a tax on each Uber and Lyft ride this past November. It is the latest in a series of city ordinances targeting the gig economy.

“Seattle is once again leading the nation by passing fair pay for Uber and Lyft drivers,” Peter Kuel, a Uber and Lyft driver since 2013 and president of the Teamsters-associated Drivers Union. “Historic victories like this should serve as an inspiration for all gig workers around the country of what is possible through organizing together as a Union to demand fair treatment.”

In June, the Seattle City Council unanimously approved legislation that requires food delivery companies to pay drivers $2.50 per delivery on top of their regular rates to offset costs and risks that drivers are dealing with during the pandemic. A few months earlier, the U.S. Chamber of Commerce, Uber, and the City of Seattle agreed to walk away from a lengthy and complex legal battle over a law that would allow drivers to unionize.

Council member Lisa Herbold suggested the minimum wage could be extended to other types of gig workers during Tuesday’s hearing. “We are not going to allow contract workers in our city to be treated this way,” she said. “I hope in the future we can work on similar legislation for other drivers … such as delivery drivers of packages as well as delivery drivers of meals and food.”

Herbold said the legislation corrects for artificially low prices at which Uber and Lyft offer their services. “Flooding the market with drivers pushes down the cost to the customer but it does so at the expense of workers,” she said. “This is much like other gig businesses, as well, where the costs of providing the service are passed off to the workers in the form of reduced earnings and benefits.”

In a statement issued ahead of the vote, Lyft warned the minimum wage will cost jobs in Seattle. “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,” the company said.

Asked about the vote, Uber referred back to a letter the company sent to the City Council earlier this month. “Uber may have to make changes in Seattle because of this new law, but the real harm here will not be to Uber … it is the drivers who cannot work and community members unable to complete essential travel that stand to lose because of the ordinance in front of you.”


 

Lissetti

Rebel Honey Badger
Article Manager
Moderator
I would say it only benefits the casual uber driver and not the skilled ones. I drove 3 years in the Seattle area. $20 plus an hour is ok, but anything less than that is not a livable wage, once you deduct expenses.

Most drivers I know in Seattle stopped driving since the pandemic but I know a few who still do.

Any thoughts @K-pax?
Post automatically merged:

I thought I read somewhere that the Mile rate would be $1.17, with a minute rate of .57 That would be a fair raise over $1.11 a mile and .18 a minute.
Not sure. Maybe that was something to do with the Pay per mile proposal they are trying to pass for all Washington state drivers.
 
Last edited:

Amos69

Well-Known Member
I would say it only benefits the casual uber driver and not the skilled ones. I drove 3 years in the Seattle area. $20 plus an hour is ok, but anything less than that is not a livable wage, once you deduct expenses.

Most drivers I know in Seattle stopped driving since the pandemic but I know a few who still do.

Any thoughts @K-pax?
I averaged $38.73 gross in 19 but margin of 53% puts me around $20 net. I drive XL / Comfort / X but live in the far north, creating lots of dead miles most days.
 

Lissetti

Rebel Honey Badger
Article Manager
Moderator
I averaged $38.73 gross in 19 but margin of 53% puts me around $20 net. I drive XL / Comfort / X but live in the far north, creating lots of dead miles most days.
My gross was less but my net was around $20. as well. I had a Prius C2 so empty miles wasn't a major issue, but I usually was constantly busy the areas I worked. Once I got the Corolla the ratio between my net and gross got a little larger. I wasn't willing to hunt as much in that car and chose to stay put more. Still the MPG was half compared to the Prius.
 

Nats121

Well-Known Member
Seattle adopts minimum wage for Uber and Lyft drivers

View attachment 511414


Seattle became the second big city in the nation to establish a minimum wage standard for Uber and Lyft drivers on Tuesday.

The Seattle City Council unanimously voted to adopt new regulations designed to ensure Uber and Lyft drivers earn the city’s $16.39 per hour minimum wage.

The new law requires transportation network companies to pay drivers at least $0.56 per minute when there is a passenger in the vehicle as well as a per-mile rate to cover expenses. The city says that standard will ensure drivers earn at least Seattle’s minimum wage, assuming they spend about 50% of their time waiting for rides or driving to pick up passengers. The minimum compensation standard takes effect on Jan. 1.

The legislation is modeled after a minimum wage standard New York City passed in 2018, though Council Chair Teresa Mosqueda dismissed the connection during the hearing. Seattle hired two researchers who advised New York City officials on their legislation to recommend a minimum wage standard when crafting the ordinance approved Tuesday. Uber and Lyft backed a separate study by Cornell researchers that produced significantly different findings. The competing studies highlight the complexities of establishing a minimum wage for gig workers.

Uber and Lyft have long said New York should serve as a cautionary tale for Seattle. Increased prices and reduced ride activity in New York followed the passage of the legislation. The apps now restrict the number of New York drivers who can work at a time, leading some drivers to sleep in their cars so that they don’t miss a chance to log-on, Vice reports.

“We would ask the city not to pass this legislation and go back to the drawing board and not copycat failed systems from other cities,” said Michael Wolfe, director of the Uber-backed group Drive Forward, during public comment ahead of Tuesday’s hearing.

But advocates for the minimum wage, like the Teamsters 117 and affiliated Drivers Union, say it is a necessary protection for drivers. “We are putting our values of wanting to lift up every worker and particularly every worker in this city into action,” Mosqueda said during the hearing.

The minimum wage is part of Seattle Mayor Jenny Durkan’s “Fare Share” program introduced in September, which increased a tax on each Uber and Lyft ride this past November. It is the latest in a series of city ordinances targeting the gig economy.

“Seattle is once again leading the nation by passing fair pay for Uber and Lyft drivers,” Peter Kuel, a Uber and Lyft driver since 2013 and president of the Teamsters-associated Drivers Union. “Historic victories like this should serve as an inspiration for all gig workers around the country of what is possible through organizing together as a Union to demand fair treatment.”

In June, the Seattle City Council unanimously approved legislation that requires food delivery companies to pay drivers $2.50 per delivery on top of their regular rates to offset costs and risks that drivers are dealing with during the pandemic. A few months earlier, the U.S. Chamber of Commerce, Uber, and the City of Seattle agreed to walk away from a lengthy and complex legal battle over a law that would allow drivers to unionize.

Council member Lisa Herbold suggested the minimum wage could be extended to other types of gig workers during Tuesday’s hearing. “We are not going to allow contract workers in our city to be treated this way,” she said. “I hope in the future we can work on similar legislation for other drivers … such as delivery drivers of packages as well as delivery drivers of meals and food.”

Herbold said the legislation corrects for artificially low prices at which Uber and Lyft offer their services. “Flooding the market with drivers pushes down the cost to the customer but it does so at the expense of workers,” she said. “This is much like other gig businesses, as well, where the costs of providing the service are passed off to the workers in the form of reduced earnings and benefits.”

In a statement issued ahead of the vote, Lyft warned the minimum wage will cost jobs in Seattle. “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,” the company said.

Asked about the vote, Uber referred back to a letter the company sent to the City Council earlier this month. “Uber may have to make changes in Seattle because of this new law, but the real harm here will not be to Uber … it is the drivers who cannot work and community members unable to complete essential travel that stand to lose because of the ordinance in front of you.”


For 56 cents per minute I'd tell the pax to take their sweet time shopping at Walmart. :smiles:
Post automatically merged:

I averaged $38.73 gross in 19 but margin of 53% puts me around $20 net. I drive XL / Comfort / X but live in the far north, creating lots of dead miles most days.
Congrats dude, you're getting a big raise.
 

ColdRider

Well-Known Member
In the long run, overall, government interference in free markets ALWAYS messes things up- for everyone.
Nothing will get fixed, no one will be satisfied; there will be unintended consequences; the politicians
cannot outsmart basic economics;
but the consultants/ politicians will be richly paid.:smiles:

Unintended consequences for sure. It creates new problems for elected officials to solve. Then those solutions create more problems and they must get re-elected to solve the new problems they helped create. Cycle continues.

Loudmouths keep a job forever.

19044713-D2BC-4949-9A62-A3ED4B53357F.jpeg

D6456547-F267-4481-AFE0-A60E20940F71.jpeg

C4D19674-DC37-4AD5-9FF7-88CE0F879EB9.jpeg

F1D9BDE0-AB23-4087-833D-908EDD139488.jpeg


“We need rent control so I can keep buying my $5 coffees and $1200 smartphones DERP”
 

Kurt Halfyard

Well-Known Member
Author
Moderator
A CAD$0.75/minute 'wait-time/drive-time' rate (This is USD$0.56 converted to Canadian Currency) would solve many of the passenger issues in Toronto. Drive-Thru stops, pax failing to be toes on curb, et cetera.

This approach may create a whole new set of issues in my market, but I'd love for U/L to charge their customers accordingly, and see what happens.
 

Amos69

Well-Known Member
Yes, I do love it, but I read that often such minimum wage level stuff are not what they intended. Let's hope this goes well.
This is less a minimum wage effect and more of a rate increase. This is what we in Seattle have been pushing for. A more New York approach.

No not the stupid people in Seattle.
Post automatically merged:

Unintended consequences for sure. It creates new problems for elected officials to solve. Then those solutions create more problems and they must get re-elected to solve the new problems they helped create. Cycle continues.

Loudmouths keep a job forever.

View attachment 511459
View attachment 511460
View attachment 511461
View attachment 511462

“We need rent control so I can keep buying my $5 coffees and $1200 smartphones DERP”
I feel Kswama's time is coming to an end. This Chop shit has people in her district up in arms and WOKE as F. They will not be walking by the next chance to vote her hate and anger out. She only won the last election by 15 votes or something ridiculous like that.

First she must survive the recall currently being sued against her.
 

IR12

Well-Known Member
Seattle adopts minimum wage for Uber and Lyft drivers

View attachment 511414


Seattle became the second big city in the nation to establish a minimum wage standard for Uber and Lyft drivers on Tuesday.

The Seattle City Council unanimously voted to adopt new regulations designed to ensure Uber and Lyft drivers earn the city’s $16.39 per hour minimum wage.

The new law requires transportation network companies to pay drivers at least $0.56 per minute when there is a passenger in the vehicle as well as a per-mile rate to cover expenses. The city says that standard will ensure drivers earn at least Seattle’s minimum wage, assuming they spend about 50% of their time waiting for rides or driving to pick up passengers. The minimum compensation standard takes effect on Jan. 1.

The legislation is modeled after a minimum wage standard New York City passed in 2018, though Council Chair Teresa Mosqueda dismissed the connection during the hearing. Seattle hired two researchers who advised New York City officials on their legislation to recommend a minimum wage standard when crafting the ordinance approved Tuesday. Uber and Lyft backed a separate study by Cornell researchers that produced significantly different findings. The competing studies highlight the complexities of establishing a minimum wage for gig workers.

Uber and Lyft have long said New York should serve as a cautionary tale for Seattle. Increased prices and reduced ride activity in New York followed the passage of the legislation. The apps now restrict the number of New York drivers who can work at a time, leading some drivers to sleep in their cars so that they don’t miss a chance to log-on, Vice reports.

“We would ask the city not to pass this legislation and go back to the drawing board and not copycat failed systems from other cities,” said Michael Wolfe, director of the Uber-backed group Drive Forward, during public comment ahead of Tuesday’s hearing.

But advocates for the minimum wage, like the Teamsters 117 and affiliated Drivers Union, say it is a necessary protection for drivers. “We are putting our values of wanting to lift up every worker and particularly every worker in this city into action,” Mosqueda said during the hearing.

The minimum wage is part of Seattle Mayor Jenny Durkan’s “Fare Share” program introduced in September, which increased a tax on each Uber and Lyft ride this past November. It is the latest in a series of city ordinances targeting the gig economy.

“Seattle is once again leading the nation by passing fair pay for Uber and Lyft drivers,” Peter Kuel, a Uber and Lyft driver since 2013 and president of the Teamsters-associated Drivers Union. “Historic victories like this should serve as an inspiration for all gig workers around the country of what is possible through organizing together as a Union to demand fair treatment.”

In June, the Seattle City Council unanimously approved legislation that requires food delivery companies to pay drivers $2.50 per delivery on top of their regular rates to offset costs and risks that drivers are dealing with during the pandemic. A few months earlier, the U.S. Chamber of Commerce, Uber, and the City of Seattle agreed to walk away from a lengthy and complex legal battle over a law that would allow drivers to unionize.

Council member Lisa Herbold suggested the minimum wage could be extended to other types of gig workers during Tuesday’s hearing. “We are not going to allow contract workers in our city to be treated this way,” she said. “I hope in the future we can work on similar legislation for other drivers … such as delivery drivers of packages as well as delivery drivers of meals and food.”

Herbold said the legislation corrects for artificially low prices at which Uber and Lyft offer their services. “Flooding the market with drivers pushes down the cost to the customer but it does so at the expense of workers,” she said. “This is much like other gig businesses, as well, where the costs of providing the service are passed off to the workers in the form of reduced earnings and benefits.”

In a statement issued ahead of the vote, Lyft warned the minimum wage will cost jobs in Seattle. “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,” the company said.

Asked about the vote, Uber referred back to a letter the company sent to the City Council earlier this month. “Uber may have to make changes in Seattle because of this new law, but the real harm here will not be to Uber … it is the drivers who cannot work and community members unable to complete essential travel that stand to lose because of the ordinance in front of you.”


BRAVO! Hoping for the best knowing ridesharing companies would rather pay attorneys to fight against what is right because they know as long as they're litigating they most likely dont have to comply.
 

Stevie The magic Unicorn

Well-Known Member
A CAD$0.75/minute 'wait-time/drive-time' rate (This is USD$0.56 converted to Canadian Currency) would solve many of the passenger issues in Toronto. Drive-Thru stops, pax failing to be toes on curb, et cetera.

This approach may create a whole new set of issues in my market, but I'd love for U/L to charge their customers accordingly, and see what happens.

Yeah I get 60c per 80 seconds(can't really explain it either lol) of wait time and because of that i don't care about making drive thru trips, multi stops ect ect in the taxi.
 

SHalester

Well-Known Member
So, what will be the unintended consequences of this action? What could U/L do? Pretty sure they aren't going to 'turn the other cheek'.
 

tohunt4me

Well-Known Member
Seattle adopts minimum wage for Uber and Lyft drivers

View attachment 511414


Seattle became the second big city in the nation to establish a minimum wage standard for Uber and Lyft drivers on Tuesday.

The Seattle City Council unanimously voted to adopt new regulations designed to ensure Uber and Lyft drivers earn the city’s $16.39 per hour minimum wage.

The new law requires transportation network companies to pay drivers at least $0.56 per minute when there is a passenger in the vehicle as well as a per-mile rate to cover expenses. The city says that standard will ensure drivers earn at least Seattle’s minimum wage, assuming they spend about 50% of their time waiting for rides or driving to pick up passengers. The minimum compensation standard takes effect on Jan. 1.

The legislation is modeled after a minimum wage standard New York City passed in 2018, though Council Chair Teresa Mosqueda dismissed the connection during the hearing. Seattle hired two researchers who advised New York City officials on their legislation to recommend a minimum wage standard when crafting the ordinance approved Tuesday. Uber and Lyft backed a separate study by Cornell researchers that produced significantly different findings. The competing studies highlight the complexities of establishing a minimum wage for gig workers.

Uber and Lyft have long said New York should serve as a cautionary tale for Seattle. Increased prices and reduced ride activity in New York followed the passage of the legislation. The apps now restrict the number of New York drivers who can work at a time, leading some drivers to sleep in their cars so that they don’t miss a chance to log-on, Vice reports.

“We would ask the city not to pass this legislation and go back to the drawing board and not copycat failed systems from other cities,” said Michael Wolfe, director of the Uber-backed group Drive Forward, during public comment ahead of Tuesday’s hearing.

But advocates for the minimum wage, like the Teamsters 117 and affiliated Drivers Union, say it is a necessary protection for drivers. “We are putting our values of wanting to lift up every worker and particularly every worker in this city into action,” Mosqueda said during the hearing.

The minimum wage is part of Seattle Mayor Jenny Durkan’s “Fare Share” program introduced in September, which increased a tax on each Uber and Lyft ride this past November. It is the latest in a series of city ordinances targeting the gig economy.

“Seattle is once again leading the nation by passing fair pay for Uber and Lyft drivers,” Peter Kuel, a Uber and Lyft driver since 2013 and president of the Teamsters-associated Drivers Union. “Historic victories like this should serve as an inspiration for all gig workers around the country of what is possible through organizing together as a Union to demand fair treatment.”

In June, the Seattle City Council unanimously approved legislation that requires food delivery companies to pay drivers $2.50 per delivery on top of their regular rates to offset costs and risks that drivers are dealing with during the pandemic. A few months earlier, the U.S. Chamber of Commerce, Uber, and the City of Seattle agreed to walk away from a lengthy and complex legal battle over a law that would allow drivers to unionize.

Council member Lisa Herbold suggested the minimum wage could be extended to other types of gig workers during Tuesday’s hearing. “We are not going to allow contract workers in our city to be treated this way,” she said. “I hope in the future we can work on similar legislation for other drivers … such as delivery drivers of packages as well as delivery drivers of meals and food.”

Herbold said the legislation corrects for artificially low prices at which Uber and Lyft offer their services. “Flooding the market with drivers pushes down the cost to the customer but it does so at the expense of workers,” she said. “This is much like other gig businesses, as well, where the costs of providing the service are passed off to the workers in the form of reduced earnings and benefits.”

In a statement issued ahead of the vote, Lyft warned the minimum wage will cost jobs in Seattle. “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,” the company said.

Asked about the vote, Uber referred back to a letter the company sent to the City Council earlier this month. “Uber may have to make changes in Seattle because of this new law, but the real harm here will not be to Uber … it is the drivers who cannot work and community members unable to complete essential travel that stand to lose because of the ordinance in front of you.”


Screenshot_2020-09-30-14-04-18.png

Post automatically merged:

So, what will be the unintended consequences of this action? What could U/L do? Pretty sure they aren't going to 'turn the other cheek'.
Post automatically merged:

So, what will be the unintended consequences of this action? What could U/L do? Pretty sure they aren't going to 'turn the other cheek'.

Unintended consequences for sure. It creates new problems for elected officials to solve. Then those solutions create more problems and they must get re-elected to solve the new problems they helped create. Cycle continues.

Loudmouths keep a job forever.

View attachment 511459
View attachment 511460
View attachment 511461
View attachment 511462

“We need rent control so I can keep buying my $5 coffees and $1200 smartphones DERP”
Screenshot_2020-09-30-14-06-48.png
 
Top