Cheaper Uber Rides Negatively Affect Rideshare Drivers; New California Law to Blame?

Cheaper Uber rides are negatively affecting rideshare riders, as claimed by a progressive advocacy and research group, PolicyLink.

The organization shared this detail after the California voters decided to approve the new law called Proposition 22.

The legislation called "App-Based Drivers as Contractors and Labor Policies" became law back in 2020. It was an initiative led by app-based companies, such as Lyft, Uber, and Doordash.

These application firms claimed that Proposition 22 would ensure that rides and deliveries remain cheap for consumers.

But, it seems like the law is making things worst for rideshare drivers.

Cheaper Uber Rides Negatively Affect Rideshare Drivers

According to The Wired's latest report, drivers working for Uber, Doordash, and Lyft are seeing hourly wage decline compared to their salaries when Proposition 22 was not yet passed.

"Driving has only gotten more difficult since Proposition 22 passed," said Vitali Konstantinov, a rideshare driver working for the mentioned companies way back in 2018.

Konstantinov, also a member of the Rideshare Drivers United group, added that they cannot negotiate their contracts with the app-based ride-hailing and delivery companies.

Since he and other riders are experiencing declines in their salaries, Vitali claimed that labor rights should be extended to app-deployed staff.

Do California Rideshare Drivers Earn $6.20 Per Hour?

The National Equity Atlas, an American detailed report card about economic equity, published the new study conducted by PolicyLink.

The advocacy organization claimed that California rideshare drivers only have net earnings of $6.20 per hour as of press time.

"Drivers' median net take-home earnings are just $6.20 per hour under Prop 22. Drivers who pay for health insurance out of pocket earn nearly half of that," said the agency.

If you want to know further details about the new findings of PolicyLink, you can visit this link.

Recently, the new partnership between Uber and Moove launched thousands of electric cars across London.

Also, in our previous report related to this story, cybersecurity researchers said that user data is safe against the alleged Uber security breach.

For more news updates about Uber and other similar applications, keep your tabs open here at TechTimes.

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Written by: Griffin Davis