This Week in Rideshare: Hosts, Jobs and Senators.
Hosts dump their homes, drivers could lose their jobs, and senators go after Instacart. LegalRideshare breaks it down.
As the pandemic continues to put pressure on the gig economy, it’s forcing Airbnb hosts to sell their properties. CNN reported:
“Christina Zima, an Airbnb host for nine years, has managed 25 homes full-time primarily in the San Francisco Bay Area, only one of which she owns herself. So far, she has shut down two of those listings during the coronavirus crisis, one of which was pre-planned.”
On Tuesday, Uber’s CEO defended his position of the Uber / Grubhub merger and added a interesting view for the gig economy. As business insider reported:
“The thing is, no one’s really making money in this business,” Khosrowshahi continued. “So the business itself has to be sustainable, and it has to be sustainable in a way that works for restaurants, works for couriers, and works for people who are ordering the food and it works for business, as well.
While Instacart has promised to help keep shoppers safe, nearly two months later some still are without safety kits. Vice reported:
More than a month later, some workers have received two kits, while countless others have received nothing. On April 23, Instacart claimed that it is sending out tens of thousands of shipments a day, but it could be that the shipments are only reaching certain parts of the country.
According to the company, passengers could expect to see prices go up 20% to 120%, and tens of thousands of drivers might be out of work.
Of Uber’s 209,000 drivers in the state, the company said, 76% could lose their jobs on the ride-hailing platform.
“As the senators indicated in the letters, online delivery companies have faced backlash over the years for how they’ve handled compensating workers. Instacart faced criticism for the way it handles tips before the pandemic, as workers said some tips added by customers were being used to subsidize a minimum pay rate instead of being treated as bonuses.”
LegalRideshare is the first law firm in the United States to focus exclusively on Uber®, Lyft®, gig workers, bikeshare and e-scooter accidents and injuries.