Gig workers plan Valentine's Day strike over pay issues

Key Takeaway

• Gig workers from Uber, Lyft, DoorDash, and others plan a Valentine's Day strike in the US, Canada, and UK over pay issues.
• Strikes aim to leverage high demand on Valentine's Day to highlight grievances about decreasing earnings amidst rising living costs.
• Companies respond with commitments to improve working conditions; regulatory environment evolves with new laws and rulings.

Drivers and Riders Strike for Fair Pay Amid Investor Pressure on Gig Economy Companies

In a significant demonstration of discontent, thousands of drivers and riders associated with major ride-hailing and food delivery platforms such as Uber, Lyft, DoorDash, Deliveroo, Just Eat Takeaway, Uber Eats, and Stuart are planning strikes in the US, Canada, and the UK. The coordinated action, set for Valentine's Day, aims to address grievances over pay and working conditions during a period when these companies face heightened expectations from investors to achieve and sustain profitability.

Valentine's Day Strikes: A Strategic Choice

Valentine's Day, known for its high demand for delivery and ride-hailing services, has been chosen strategically by the gig workers to maximize the impact of their protest. In North America, drivers and couriers are preparing to halt services and picket at key locations, including airports in Florida, New Jersey, Texas, and Uber's headquarters in San Francisco. Similarly, in the UK, a significant number of couriers plan to strike, with actions being organized by grassroots groups and spread through social media and word of mouth.

The Core Issues: Pay and Transparency

The primary concern uniting gig workers across these regions is the issue of low pay amidst the rising cost of living, coupled with a call for greater transparency in how fares and deliveries are allocated and compensated. Reports indicate a decrease in average earnings for gig workers, with specific figures highlighting a 17% drop in monthly gross earnings for Uber drivers and a slight decrease for DoorDash riders in the US. In contrast, Lyft drivers saw a 2.5% increase. In the UK, data suggests a decrease in average pay per order for Just Eat and Uber Eats couriers.

Company Responses and Financial Performance

In response to the planned strikes, companies have emphasized their commitment to improving the working experience for drivers and riders. Lyft, for example, announced a guarantee of minimum weekly earnings for drivers. Uber highlighted the flexibility and earning potential on its platform, while DoorDash, Deliveroo, Just Eat, and Stuart reiterated their efforts to offer competitive earnings and flexible work arrangements. Financially, Uber recently reported its first annual operating profit, and both Just Eat and Deliveroo have shown narrowed pre-tax losses, signaling a push towards profitability.

Regulatory and Legal Landscape

The gig economy's regulatory environment is evolving, with recent developments including a new minimum wage law for gig workers in New York and a provisional deal in the European parliament aimed at improving working conditions. However, challenges remain, as evidenced by a UK Supreme Court ruling that denied Deliveroo riders the right to collective bargaining.

Looking Ahead

As gig economy companies navigate investor expectations and regulatory pressures, the strikes on Valentine's Day underscore the ongoing tensions between the pursuit of profitability and the welfare of the gig workers who power these platforms. The outcomes of these strikes, and the responses from the companies involved, may influence the future direction of labor relations and operational strategies within the gig economy.

Management Quotes

• Jonathan Cruz, Uber driver:

  "People are tired of this. It’s getting worse as the years go by. The gap is increasing between what the customer pays and what the driver gets . . . It’s hard to survive right now."