California's 'Uber law' could affect millions of workers


Assembly bill five baby five is the shorthand isn't even the law out here yet. It's the bill. The legislature passed earlier this week that would oblige rideshare companies like lift an uber declassified drivers employees. He's not independent contractors. We told you about a couple of days ago anyway. It's not even the law yet but lawsuits have already been filed in the meantime though drivers are still trying to make a living in the GIG economy lift changed. Its rules not too long ago to get more money to drivers in congested areas but not everybody loves that from K. Q. E. D. Sonia Hudson has more for around four years ago. Lifts started paying drivers a bonus to go to areas where there was a lot of demand for rides but not enough cars like North Oakland during rush shower and under that system drivers would get a fair multiplier say one point four times what they would normally earn on that ride you would for those hours. Ours is difficult as they were that you would make a decent hourly rate for those. That's Lawrence wigger. She's been driving part time for left for the past five years. We're sitting in her car. In Oakland where she lives in likes to drive swagger says under the old system she could make around two hundred dollars a week driving two hours during rush shower every day or about twenty dollars an hour then lift came up with a new payment system for areas where there's high demand for drivers and called it personal power power zones now. I think I would be lucky to make one hundred dollars swagger as part of a group called GIG workers rising which says it works with more than nine hundred drivers in California -fornia in as opposed to the switch. We actually jokingly call them. Personal poverties zones the new system uses flat rate bonuses say a four dollar are bonus regardless of the length of the ride under the old system swagger could sometimes make twelve dollars bonus on a thirty dollar ride and now sometimes it. Max Out out at four dollars so four dollars instead of twelve dollars is obviously ridiculous. Incentive Uber uses a combination of flat. Ah Bonuses like personal power zones and percentages like the old lift system lift wouldn't make anybody available for an on the record interview but the company maintains while bonuses are smaller more drivers are getting them lift says that personal power zones were designed to be more predictable stable equitable and stable for writers to when when it comes to pricing lift points out the change hasn't driven up fares and that's true for writer jared. Lee do a music composer who uses both lifting Uber and Oakland during rush hour. I haven't noticed a big difference in fact La- do only learned about the change in lifts driver bonuses when I mentioned it to him. He says he's concerned about drivers is but that the new information is probably not going to deter him from using uber or left. I would use it more to get from back to my house so I probably would still use one of them because I don't want to do. The work. Lift says on average driver earnings across the country have increased over the last two years but it doesn't release rot brought earnings data. Tom White is an analyst who follows lift for the Financial Services Company. Da Davidson. He says that the change generally resulted in drivers seeing their payouts reduced. How does he figure that. Lift takes a percentage of all fares and white says that the company's been taking about eight percent more or from those fares over the last two years you know the main contributor to that increase is that drivers are earning less than than they used to lift argues the addition of bike computer services accounts for the increase it takes one hundred percent of the fees on those since there's no driver to pay but white says bikes and scooters are only a small share of of lifts overall business not enough to account for that eight percent increase white says the reality is lifted trying to make a profit lift loss more than nine hundred million dollars last year. You know investors won't be patient forever. The company went public. This year and white says lift is keen to demonstrate to shareholders. It does have a plan to become profitable double eventually. The question for drivers is whether working for lift is still profitable enough for

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