Uproar over Uber and Love for Lyft?
After President Donald Trump’s executive order banning refugees from seven predominantly Muslim countries, a furor #deleteuber furor developed on social media networks over Uber and their opportunistic stance on picking up passengers at New York’s JFK Airport. This was while NYC taxis, acting in solidarity with refugees, were boycotting and halting pickups. In addition, Uber’s CEOs purported support of the Trump administration added more fuel to the fire. However, despite all of this, a question which should be asked and further examined is, why is everyone just now deleting Uber? I’d like to ask why you, the Liberal Left, had all not done it sooner, and why you are you not deleting Lyft at the subsequent stroke of your finger obliterating Uber from your phone. The reason the question is being posed is that, there are problems with both ride sharing apps, in how they treat their workers, and how they have decimated the Taxi industry and its workers, both groups are largely made up of immigrants and refugees.
The problems with Uber and Lyft are not new within the progressive left, many of whom have been arguing about their detriment for some time. Even as late as May of 2016, the Lady of the left, Elizabeth Warren, was speaking out against both Uber and Lyft, noting that the “gig economy is simply the next step in a losing effort to build some economic security in a world where all the benefits are floating to the top 10 percent.” Uber, since its inception in 2009 has been involved in multiple class action lawsuits, ranging from assaults against passengers, lack of background checks for drivers, price fixing, and most importantly-its exploitation of workers. These are important points, specifically in this time of economic inequality, when you consider that Uber’s CEO, Travis Kalanick, has a net worth of $6 billion USD, and the company itself is valued at roughly $68 billion USD.
An astute observer of the left, or the new #resistance left, should have seen long before the Trump regime ever came into power that Uber had otherwise decimated the Taxi industry and has been taking advantage of workers, immigrants, refugees, and citizens alike. They have done this by playing outside the rules of the game, by flouting and working to go outside the regulations which cab drivers, again, many of whom are refugees themselves, must operate under. This has allowed Uber to flood transportation market with drivers who are not required to complete background checks, complete a hiring test, and work under the guidelines that cab drivers work within. Therefore, the additional labor within the transportation economy is creating a proverbial race to the bottom, where the wages of both the cab drivers and Uber drivers are being driven down. For the cab drivers, this has become an issue of survival, for Uber and Lyft drivers it is perceived as an easy way to add a few extra dollars to supplement their income, but for the CEOs and investors of Uber, it is a gold mine.
This is where the Lady of the Left’s remarks are of great importance, in that the so-called gig economy is a losing effort to build economic security, and the benefits are floating to the top 10 percent, or to take from the Occupy Movement, going to the top 1%. An example of how this plays out is seen in the work of an Ethiopian Uber driver, who noted that in 2014 after taking out Uber’s commission, gas, car maintenance, and insurance, he was only earning $2.67 an hour. While Uber’s CEO earns $3 million an hour for a 40 hr. work week. Why has the delete Uber campaign not protested to this gross level of inequality? Uber saying they will pick up passengers at JFK Airport for one day while NYC cab drivers are protesting the refugee ban seems to pale in comparison to the daily abuses they are engaging in by flouting regulations that others play by and by taking the surplus value of their drivers’ labor.
The same can be said for Lyft, whose CEO Logan Green is worth roughly $300 million USD and Lyft itself is worth roughly $5 billion USD. Despite the competition and angst between the two ride sharing companies, they do share roughly the same business model. And, one should not be fooled by Lyft’s $1 million donation to the ACLU to support their work in fighting the refugee ban in light of the JFK taxi issue. While it is a nice gesture, it was an opportunistic move and is just a pittance in comparison to what they could be doing in supporting their workers, many of whom are immigrants or refugees. In fact, as recently as June of 2016, Lyft was settling a $27 million class action lawsuit in California for their “shortchanging” of drivers’ wages. If they have the capital to donate $ 1 million to the ACLU and to settle a $27 million lawsuit, then surely there is enough to give back a little more to their workers.
Of course, there is the argument that both companies are doing some good, they are providing jobs, often this is a 2nd job for many drivers, they are taking more cars off the road thus lessening the environmental burden. They were also just innovating whereas the cab companies were remaining stagnant. By offering a mobile phone app to hail a ride, they were simple making it easier for the consumer. And, one could say that these are all true and deserve a level of merit.
However, the larger issue remains in the way the rules of the game are being structured and to who’s benefit. In the case of Uber and Lyft, they are taking advantage of an area with little regulation, and decimating an industry while exploiting their own workers and adding to increasing levels of inequality. So, simply having a hashtag #deletuber day, while nice and a popular trending item on social media, will be a fleeting attempt in changing the rules of the game and providing a level of fairness for the benefit of all. The #resistance movement and liberal left need to wake up to the issues they were ignoring prior to Trump, because despite how awful his oratory has been, most of these were in play prior to him assuming office, but were ignored with a Democrat in office.
