#lyft drivers

Detroit Lyft Drivers Demand Solidarity From Lyft

In consideration of the COVID-19 global pandemic and Michigan's effort to reduce the virus's spread through a state lockdown, we, the Lyft drivers of Detroit, are demanding that Lyft do the ethical thing and prioritize people over profit!

We are at a high risk of contracting the virus, dying, falling ill, and/or falling into poverty. Despite this harsh reality, Lyft continues "business as usual" to maintain huge profits at the expense of our lives and livelihood. Although we understand Lyft Drivers are 1099 contractors, it is still unacceptable that Lyft hasn't stepped up to protect its primary source of revenue, US.

While the Michigan State Government has listened to community members and halted evictions, water shutoffs, and utility bill payments, Lyft has not listened to the many requests of the Detroit Lyft Drivers. Lyft continues to expect us to make utility bill payments. As a result, many workers who are immunocompromised, who have children, who have pregnant partners, who live with their elderly family, and who are incredibly anxious or depressed by this pandemic, are forced to work or pay costly car rental rates, car notes or car insurance fees.

Lyft touts the earning capacity and annual income for Drivers as a selling point to recruit new drivers. However, those figures include fees and deductions that increase on a regular bases, making it hard for drivers to anticipate their earning capacity week-to-week.  Once we reach a specific plateau, e.g., challenges, bonuses, etc. they are changed, not increased to congratulate or boost our desire to drive more. The incentives are changed downward with driving expectation/quota increased. On the surface, it seems that Lyft Drivers make a nice living, however, at the end of the year, of an average wage of $31,000 only $11,000 is seen by the driver because of incredible high driver fees (express drive rental, maintenance, fuel, etc.). This problem of low pay has been exacerbated by the Covid-19 Crisis.  As of this month, many drivers who have driven for long hours have seen their revenue decrease by over 50%.

Examples of Current Issues:

Cause and Effect of Low Demand:  A few days ago, a Detroit Lyft driver complained that they were only able to take three rides in 3 hours. Another Detroit driver had to return her car because she could no longer afford the rental fees. She reached out to Lyft multiple times to ask for a reduction of the rental price, and was told she had no choice but to return the car. Not only did Lyft not return her security deposit, but they also charged her extra to clean an already clean car! With the current Stay at Home decree by the Governor most car washes are closed.  Lyft has always asked that upon returning a car the gas tank be full and the car freshly cleaned inside and out. It is difficult to have a car professionally cleaned during this crisis. There are many horrifying stories like the ones mentioned above. It seems that Lyft, a billion-dollar corporation, is taking advantage of its contractors who are in need of its support.

Earning Capacity: Another driver recently gave a ride and received only $13 while the passengers were charged $30. Lyft is still keeping a higher percentage of the fee from rides during this pandemic. We drivers are putting our lives on the line to put food on our tables, yet Lyft doesn’t reward us for continuing to provide this service despite the danger, instead all incentives have been cancelled with no support from corporate.

Corporate Integrity:  We, the Lyft Drivers of Detroit, are FURIOUS by the disgusting display of corporate greed, lack of communication, and no reasonable efforts to protect us from this deadly virus, e.g., wipes, mask, gloves, communication, discounts and raise in earnings.  Some drivers received an email saying the hubs would have bottles of disinfectant spray, but by the time the word got around, the hub had closed. Yes, we understand we are 1099 contractors, but without drivers, Lyft doesn't exist. Yes, you have a reservoir of people who want to drive, but what does it say for a company with high turnover? How do you think your original drivers feel to watch their earning decrease?

Instead of creating incentives, incentives were removed, no discounts have been given for Flex Lyft rentals; even though there is a decrease in demand, instead drivers are returning their cars.

Unprecedented fees are being placed on returned vehicles with the $250 deposits forfeited and an increase in the deposit to $500 moving forward.

No communication and even worse, no response to questions asked by Lyft drivers in desperate need of answers.

Compensation:  This virus has opened long festering wounds. Drivers who work full or part-time are feeling corporate's move from the 80/20-70/30 model to a base rate of time and miles that has diminished earning capacity and propelled Lyft into a publicly-traded company.  Drivers who take all the risk, should make more than Lyft, even those who rent from Lyft at over $1,000 a month.

Yesterday, a resolution was made by San Francisco lawmakers asking that Lyft Drivers be classified as employees, noting that we are suffering during this time (Eidelson, 2020). An Aid of a San Francisco Supervisor stated, rideshare and similar companies, "continue to flout our state and city laws, leaving their misclassified employees without access to unemployment insurance, paid sick leave, medical benefits, workers' compensation" and other benefits that are urgent during the coronavirus epidemic (2020).  While this will be a hardship for corporate and is not the business model Lyft developed at its inception, the company has turned from being a partner to 1099 contractors, 80/20-70/30 business model, to being an employer with standard rates and incentives that go down, changes and/or are removed at a whim, affecting the earning capacity for the Drivers.

We are DEMANDING Lyft act transparently and ethically NOW!

We demand (during the Covid 19 pandemic) that Lyft:

Add a button asking riders if they have specific symptoms and have them check a box, if the answer is yes the ride should not be in the queue.

Give 2-4 weeks paid time off to immunocompromised drivers and drivers living with pregnant partners, children, elders, or immunocompromised housemates. This way, drivers can pay their car notes, car insurance, and any other outstanding bills.

Give active drivers masks, gloves, hand sanitizers, and anti-viral/anti-bacterial sprays.

Waive or reduce (by ½) the rental rate for Express/Flex Drivers.

Waive or increase the personal miles for Express/Flex Drivers.

Return the full rental deposits (with severance pay) to every driver who has returned their rental car during the pandemic.

Increase the personal miles for Express/Flex Drivers.

Allow drivers who returned their rentals due to the virus, whether for health reasons or the slow down, receive priority to rent a new car at the $250 rate.

If safety is Lyft's highest priority, it should act ethically to prioritize driver safety during this crisis.  Drivers still on the road should be compensated at a higher rate for doing so.

Ongoing Demands for Compensation and Communication:

Give active drivers a more significant percentage of the earnings from rides (at least 80%), return to the original minimum of $5.00 per ride, or a minimum wage of $15-$20/hr. Especially if they are giving rides to and from hospitals and airports. And especially if they are part of the LyftUp Driver Task Force. Also, factor pickup distance and amount of passengers that will be on the ride when calculating driver payments.

Create payment bonuses for wear and tear on driver owned cars based on easily trackable mileage and time.

Increase the personal miles for Express/Flex Drivers.

Grandfather current Express/Flex Drivers into the current $250 deposit.

Grandfather Drivers that came in at the 80/20-70/30 rate as originally promised.

Create a schedule for bonuses/challenges that are consistent and do not change downward once Drivers meet set goals.

If we don’t hear from anyone in seven days of the receipt of this document and no progress has been made towards the resolution of our issues within two weeks of receipt we will:

Refuse to participate in the LyftUp Driver Task Force.

Pick a day (or more) of action, where no drivers will give rides.

When we do resume riding, we will inform our passengers about what's going on, so they too can take actions against Lyft in many forms, e.g., making arrangements with Lyft drivers to coordinate rides without the Lyft app).

Speak to the media about Lyft policies to help raise public awareness.

Take other measures to protect ourselves.

In February 2020, Lyft made $1 billion in revenue (Owens, 2020) and as of 2019 "Logan Green and John Zimmer, Lyft's co-founders, [held] some $700 million and $510 million in Lyft stock, respectively." (Swiger, 2019). They have more than enough money to act ethically!

The current status of Lyft's response to Drivers during the virus, its pre and, most likely, post-relationship with us, is one of great concern.  At best, we can give Lyft the benefit of doubt that their partners and top tier executives aren't aware of the severe neglect, lack of communication, and transparency that has been building over the years.  At worst, we feel Lyft has intentionally neglected our well-being to increase returns for its investors. Many social investors that invest with companies like Lyft that have a social impact on society, may not think highly of a company that takes advantage of its contractors, especially during this time of crisis.

We hope to come to an amicable resolution to the issues mentioned above and move forward in the best interest of Lyft drivers and the general public.

References:

Eidelson, Josh. (2020, March 24). Uber, Lyft Called Out in Hometown for Flouting Workplace Law. Retrieved from https://www.bloomberg.com/news/articles/2020-03-25/uber-lyft-called-out-in-hometown-for-flouting-workplace-law.

Owens, Jeremy C. (2020, February 12). Lyft Tops $1 Billion in Quarterly Revenue for First Time. MarketWatch, Retrieved from www.marketwatch.com/story/lyft-tops-1-billion-in-quarterly-revenue-for-first-time-but-stock-dips-in-late-trading-2020-02-11.

Swiger, Lauren. (2019, June 19). This Ride-Share Driver Demands a Voice-And a Living Wage.” SFChronicle.com. Retrieved from www.sfchronicle.com/opinion/openforum/article/This-ride-share-driver-demands-a-voice-and-a-14016255.php."

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