Uber, Lyft drivers on global strike just before Uber's IPO

[beastie boy]

Source: Good Morning America

Uber and Lyft drivers around the world are striking on Wednesday to improve wages and working conditions just two days ahead of Uber's monster IPO that could generate $80 million to $90 million.

The hours drivers plan to strike vary by location but will span from New York to Atlanta to Tokyo.

Read more: https://www.yahoo.com/gma/uber-lyft-drivers-global-strike-just-ubers-ipo-090150970--abc-news-topstories.html

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This is a much bigger news story than it may appear at first.

This is the future of the labor movement. It must become global in order to be effective against multinational corporatism.

Glad it's finally happening.

[Dream Girl]

1. That's gonnna ruin a lot of people's day here in SF. But more power to the them!

[brooklynite]

2. Not sure this is any more substantial than people here calling for a "general strike"

I'm seeing plenty of car availability in NYC.

[cannabis_flower]

3. Well...

I'm not driving today, but I hardly ever drive Uber/Lyft on Wednesday. Only if there's no school.

[PoliticAverse]

4. Uber lost $ 1 billion in the first quarter of this year.

See: https://www.businessinsider.com/uber-earnings-q1-2019-losses-at-least-1-billion-2019-4

$ 1.8 billion in 2018
https://www.cnn.com/2019/02/15/tech/uber-2018-financial-report/index.html

Without significant rate increases how is this a viable business?

Uber's monster IPO that could generate $80 million to $90 million.

Yahoo erred, that should be "billion" not "million".

[pat_k]

5. After looking at what drivers actually make, I will never use Uber or Lyft again

It seems to me Uber drivers are getting massively ripped off -- and many don't seem to realize it.

From what I can find, it looks like gross earnings are about 84 cents a mile.

So, to gross $300, I need rides that add up to 357 miles.

If I get decent mileage, I've used about 15 gallons of gas @ $3.30 = $50.

I have to pay sales tax, which in Seattle is 6.5% = $20 bucks.

I also have to pay self-employment tax @ 15% = $45 bucks.

So now I'm at $185 = $300 - ($50 + $20 + $45)

Then of course there is wear and tear on the car. The rule of thumb is that for every mile you drive, you need to set aside 10 cents for repairs/replacement (This is based on conservative assumptions -- i.e., after 200,000 miles you need a new car at $18,000 and have spent about $2000 in repairs/maintenance)

So, that's another $35 out of what I earn, which brings me down to $150

Now, how long did I have to work to rack up 357 miles? Let's say I somehow average 30 mph of passenger time for the entire shift, it would take me about 12 hours to rack up 357 miles. So, I make a whooping $12.5 per hour. About minimum wage here in Seattle.

Unfortunately, after poking around, it looks like it takes more like 15 hours to rack up 300 miles, so it would take about 18 hours to rack up 357 miles.

$150 in 18 hours = $8.33 per hour

The cost of car insurance will reduce that too (and buying high mileage insurance isn't cheap).

Stories claiming drivers can make over $50,000 as an uber driver are a complete crock. You'd have to work 18 hours a day, 365 days a year to earn that (and of course, if you somehow managed to do that, you'd pay $8,000 of it in federal taxes after standard deduction)

I wonder how many Uber drivers realize they are actually making $8 per hour?

[JonLP24]

6. Sounds worse than when I drove a cab

It was either $100 lease for 12 hours or $150 lease for 24 hours plus flag drop fees. That doesn't count gas, car wash, etc.

[TexasBushwhacker]

9. Not may people tip either n/t

[Blue_Tires]

7. From what I can tell, it's a completely unsustainable model...

[beastie boy]

8. Tell me more. Anything that you think might make it sustainable?

I just don't see an alternative to it. My view is that the only way labor can resist the organized multinational corporate onslaught is to meet it with an organized multinational labor movement. We just don't have any other choice, and we will keep losing every regional conflict with big capital unless we go global to oppose it.

[Jose Garcia]

10. Self-driving cars

[beastie boy]

11. So you are actually talking about a business model which involves professional drivers. I was takng

about a multinational labor movement that is independent of any specific business model.