Uber and Lyft drivers attending a Driver Summit event today sponsored by the App-Based Drivers Association got a first look at a Rideshare Wage Calculator developed in partnership with Teamsters 117. The new tool, which can be accessed at www.drivercalculator.org, deducts common expenses such as gas, vehicle maintenance, and insurance from a driver’s weekly gross earnings to calculate estimated hourly pay. Drivers can compare their pay to the Seattle minimum wage and other types of jobs.
"The Rideshare Wage Calculator gives you a realistic calculation of your pay."
“The Rideshare Wage Calculator gives you a realistic calculation of your pay,” said Hari Lama, who has driven for Uber and Lyft for two years. “It reflects my experience that our pay has been decreasing over time and that the commission rates these companies are taking are too high. We need to be compensated fairly so we can earn a living wage.”
The methodology used to develop the Calculator is based on the work of Larry Mishel, a distinguished fellow at the Economic Policy Institute, who analyzed driver pay in his report Uber and the Labor Market published earlier this year. "It is important that every 'rideshare driver' accurately assess their earnings and be able to compare them to other workers on an apples-to-apples basis. This wage calculator provides just that tool," Mishel said.
Drivers at the meeting brought their concerns over high commission rates, decreasing pay, deactivation, and a lack of protection for workers to Seattle City Councilmember Teresa Mosqueda, who committed to work with others on the Council to develop new policies to raise standards in the industry.
“We need to establish policies to ensure that drivers in the for-hire transportation industry enjoy the same rights and protections as other workers in our City – the right to free association, the right to stand together in a union, and protections by Seattle’s sick and safe leave and minimum wage laws,” Councilmember Mosqueda said.
In April, the City Council passed a resolution to study data in the for-hire industry and explore equitable compensation for drivers, improve customer service, and ensure equal market access to all stakeholders. “Uber income is going down and our expenses are going up,” said Abebe Ephrem, who has been driving for Uber and Lyft since they entered the Seattle market in 2012. “The drivers have lives, they have apartments, they have families. The City needs policies so that we can be treated with respect, like human beings.”
Uber is near the top of companies in Washington State whose workers rely on food stamps to feed their families. According to a recent study by JP Morgan/Chase, average monthly earnings among active for-hire drivers in the first quarter of 2018 were 53 percent lower than their peak in the first quarter of 2014.
“The public should not be subsidizing billion dollar companies in a race to the bottom in driver pay,” said John Scearcy, Secretary-Treasurer of Teamsters 117. “Seattle needs to follow New York's lead and pass legislation to guarantee that drivers can earn a living wage.”