This Week In Rideshare: Co-ops, Commission and Earnings.
Drivers create an own app, Uber drops commission and earnings are down. LegalRideshare breaks it down.
DRIVERS CREATE THEIR OWN APP
Drivers are fighting Uber by launching their own apps. Business Insider reported:
Sperry and several hundred fellow drivers in San Diego are exploring forming a cooperative. Instead of driving for the established apps, Sperry said, they would set up their own app, elect leaders to manage it, and create transparent policies around issues such as deactivating drivers.
In some cities, driver co-ops already exist.
In New York City, The Drivers Cooperative has been offering rides since 2021.
Another, Drivers Co-op Colorado, launched last September. The co-op has about 16,000 drivers, and it guarantees them 80% of each fare that riders pay. Many ride-hailing drivers say they get paid less than half of the fare on other apps. The co-op’s promise also represents a greater share than Lyft, which says it pays drivers 70% of the weekly rider payments they earn after fees.
ZERO COMISSION FOR UBER IN INDIA
Uber has adopted a new model for drivers in India. Yahoo! Finance reported:
Ride-hailing platform Uber has moved to a zero-commission model for its autorickshaw drivers in India and will instead charge them a subscription fee, mirroring a strategy followed by local rivals as competition intensifies.
Uber said it will now only connect users with nearby drivers and will suggest a fare but the final amount would be decided by the driver and the rider, the company said in a blog post.
A company spokesperson said the company made the shift as it did not want “to be at a competitive disadvantage”.
GIG WORKERS WORKED MORE / EARNED LESS IN 2024
Gig workers worked more but earned less in 2024. Business Insider reported:
Uber hide-hailing drivers saw their earnings for 2024 fall 3.4% on average to $513 a week, according to a study released Tuesday by data analytics company Gridwise. At the same time, Uber drivers worked 0.8% more hours in 2024.
Lyft drivers, meanwhile, worked 5.4% fewer hours in 2024, but saw their pay decline at a faster clip of 13.9% to $318 a week.
Meantime at DoorDash, gross weekly earnings rose 4.8% to $240 in 2024. Hourly earnings for those on the app fell, though, as the number of hours that gig workers spent on the app rose 5.2%.
Tips were much less significant for ride-hailing drivers, Gridwise found. Gratuities made up just 10.4% of earnings, per the report.
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