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  • Geebo 7:23 am on July 23, 2019 Permalink | Reply
    Tags: , DoorDash, food delivery, gig economy, tipping,   

    Your delivery tips may not be going where you think! 

    Your delivery tips may not be going where you think!

    In today’s immediate response needed society, many of us use food delivery services like UberEats or DoorDash to have food delivered to our home. These services became popular once consumers found out that they could have food delivered to them from restaurants that don’t normally deliver. Can’t get out of the home and need to get a decent meal delivered for dinner? Just use the app for one of these services and you can have dinner delivered to your home in no time. Now, while it may be convenient for you this convenience comes at a cost. Is that cost burdened by the restaurant? No. Is it the platform itself? Sort of. However, too much of the cost may be burdened by the delivery drivers themselves.

    A recent report from the New York Times had one of their writers and go out and work as a delivery driver for these gig economy platforms. In order to make any decent amount of money, many of these drivers have to work for several different services while trying to comply with the rules and demands of each. trying to juggle all of those demands increases the likelihood that they could lose out on deliveries. Meanwhile, they’re not really employees of any of these companies and are seen more like independent contractors. This way these companies don’t have to provide many benefits to their drivers.

    To make matters worse, according to the Times report, some of these platforms consider tips as part of the drivers’ base wages. For example, if you tip your delivery driver through the platform’s app, that tip may just be taken off the top of whatever they were going to make for that delivery. In essence, tipping just reduced their pay. Not all delivery platforms are like this, but The Verge has a list of companies that do and don’t count driver tips as base pay. So the next time you order lunch to be delivered, try to keep in mind the person delivering your food and what they’re going through as well.

     
  • Geebo 8:00 am on April 26, 2019 Permalink | Reply
    Tags: gig economy, , , ,   

    Can Uber and Lyft survive strike? 

    Can Uber and Lyft survive strike?

    It appears that the gig economy is about to face a major milestone in its relatively short history. While some cities and taxi unions have opposed the invasion of ridesharing services like Uber and Lyft, now it’s the ridesharing drivers themselves that are fighting back against the companies. On May 8th, Uber is set to issue its IPO. Some estimates put Uber’s valuation at between $80 billion and $90 billion. Meanwhile, many of their drivers earn less than minimum wage and plan to do something about it.

    On the same day that Uber goes public many Lyft and Uber drivers plan to go on strike for 24 hours in eight cities. Those cities are Boston, San Francisco, Chicago, Los Angeles, San Diego, Minneapolis, Philadelphia, and Washington DC. These are all major cities that depend a lot on not only public transportation but also ridesharing services. Even just for one day, the strike has the potential to put a very inconvenient dent in a lot of people’s commute. This could get a lot of support for Uber and Lyft drivers.

    The drivers are demanding

    • higher wages
    • clearer policies on wages, tips, how fares are shared and disciplinary action
    • employee benefits such as health care, disability payments and holiday pay
    • recognition and representation for drivers in Uber’s management structure

    It will be interesting to see how Uber and Lyft react not only to the announcement of the strike but the strike itself. One of the problems with the current economy is that employees in most industries have fewer protections than there have been in the past. This makes the gig economy attractive to many looking to supplement their current income. That means that there are scores of people looking to replace the striking Uber and Lyft drivers if those companies decide to retaliate. While it would be a major PR disaster for those companies, they’ve become such a convenience that it may blow over.

     
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