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Uber and Lyft drivers rallied outside San Francisco City Hall on Wednesday as part of statewide protests demanding fair compensation from the ride-hailing companies as settlement discussions continue over allegations of wage theft.
“We are fighting for our wage losses,” said driver Ibrahim Diello in an interview. “Uber and Lyft have been taking advantage of us.”
On Monday, negotiation talks will resume with Uber as multiple public law offices seek to reach a settlement over thousands of wage theft claims against the companies across California.
In 2020, about 5,000 Uber and Lyft drivers filed claims with the state, alleging that the ride-hailing companies denied drivers certain benefits like work breaks, overtime, and full mileage compensation by misclassifying them as gig workers before Proposition 22 was passed in 2020. The claims totaled about $1.3 billion in stolen wages, damages and expenses.
But Rideshare Drivers United, an advocacy group for ride-hailing service drivers across the state that organized Wednesday’s rallies, said that the settlement should be much higher considering that anyone who drove for Uber or Lyft in California between 2016 and 2020 is eligible to receive compensation. The group estimates that about 250,000 drivers qualify.
“We’re coming to show that we are here and expecting a fair judgement,” Diello said.
The state’s Prop. 22 allows ride-hailing companies to treat their drivers as independent contractors that are not granted full worker protections if they were considered employees. The proposition — which ride-hailing companies spent over $200 million to pass — exempts gig companies from having to comply with Assembly Bill 5, a law that extends employee protections to gig workers.
Clik here to view.
But prior to its passage, thousands of drivers said they were not considered employees as guaranteed by AB 5.
San Francisco City Attorney David Chiu brought the case alleging wage theft in partnership with Attorney General Rob Bonta and the city attorneys of Los Angeles and San Diego.
A bigger piece of the pie
Drivers are also demanding that Uber and Lyft shrink the commission percentage the companies bring in from each ride, which some drivers say averages around 40%.
“So much money comes from the passengers that get into our car and so little of it goes to us,” said Jason Munderloh, who has been driving for Uber and Lyft for 11 years. “That just has to be fixed.”
Twenty percent, Munderloh said, is the highest percentage the companies should walk away with from each ride.
Uber said in a statement that much of the percentage they take away from each ride in California, about 33%, goes toward local government taxes and fees as well as the cost of commercial auto insurance. Thus, the resulting revenue Uber receives is well below 20%, the company said.
“So much money comes from the passengers that get into our car and so little of it goes to us. That just has to be fixed.”
Jason Munderloh, rideshare driver
Some drivers like Devins Baker allege that Uber and Lyft have wrongfully deactivated them over reviews left by riders without thoroughly investigating claims. Rideshare Drivers United is demanding that drivers be extended greater protections from deactivations.
“Uber deactivated me for alleged dangerous driving,” Baker said in an interview. “There was a guy in front of me who decided to cross all three lanes, so I had to hit the brakes hard just to not hit the guy.”
A spokesperson for Uber said that the company does not take deactivations lightly and will only do so without warning if there are reports of unsafe driving or unlawful actions committed by the driver. Drivers who are deactivated can appeal the decision, prompting a human-led case review process that investigates whether the reports were fraudulent, according to Uber.
Lyft did not respond to requests for comment in time for publication.
If a settlement amount with Uber is not reached by Monday, another session will occur May 21, according to a joint case management statement from the attorneys. Lyft is scheduled for its second mediation April 8.
All parties are willing to schedule additional negotiations if needed.
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