Could Pa. legislate ride-share drivers’ rights? Politicians are hosting a hearing
There's a growing momentum for worker-oriented ride-share legislation across the country, with New York City and California leading the way.
One month after Uber and Lyft drivers took to the streets in a global day of protest about wages and working conditions, a group of Democratic state senators are hosting a hearing Thursday morning focused on those workers.
Pa. Sen. Anthony Hardy Williams, fresh off his second failed bid for mayor, called for a Senate Democratic Policy Committee hearing after reading an Inquirer story about ride-share drivers’ steady pay cuts over the years, as Uber and Lyft tweak their business model in pursuit of profitability.
The Philadelphia Parking Authority and the Pennsylvania Public Utilities Commission regulate ride-sharing but not working conditions and wages.
There is a growing movement for those worker-oriented regulations, though: New York was the first city to pass a minimum wage for drivers, after drivers organized and pressured politicians. California is getting closer to passing a bill that would make it harder for companies such as Uber and Lyft to classify workers as independent contractors and deny them benefits. Philadelphia’s Office of Labor, too, says it’s developing a plan for bills that would protect gig workers.
Williams said he’s not yet sure what his plans are.
“Does it require more regulation?" he said. “Does it require spotlighting certain companies in terms of how they treat their employees? ... I haven’t reached a conclusion as of yet.”
Uber has spent nearly $325,000 lobbying in Harrisburg in 2018, down slightly from $338,000 in 2017, according to state records. In New York, while the city was considering a minimum wage for rideshare drivers and a temporary cap on rideshare vehicles, Uber spent $876,000 lobbying in the city from Jan. 2018 to June 2018.
On the federal level, Uber spent $2.3 million on lobbying in 2018, the most it’s spent lobbying in D.C. since 2013, the first year it did so.
Lyft spent just over $6,000 lobbying in Harrisburg in 2018.
Uber and Lyft went public this past spring. Both companies have reported losses: Uber said it lost $1.8 billion in 2018 on revenue of $11.3 billion. Lyft, which went public in March, said it lost $1.14 billion in the first quarter of 2019. Meanwhile, Uber’s top five executives made a total of $143 million in 2018.
Venture capital firm First Round Capital, headquartered in Philadelphia and one of the earliest investors in Uber, made a massive return on its investment when Uber went public. The Wall Street Journal called Uber one of the “greatest startup investments of all time.”
Uber and Lyft’s stock prices have been bouncing back after a tough start. Uber’s stock price closed yesterday at $45 — the IPO price — after dropping as low as $36.08 on May 13. Lyft, on the other hand, has seen its stock price grow to $63.01, though it’s still below its offering price of $72.
The public hearing is at 11 a.m. at McNeil Science and Technology Center’s Room 145 in University City.
Philadelphia Media Network is one of 21 news organizations producing Broke in Philly, a collaborative reporting project on solutions to poverty and the city’s push toward economic justice. See all of our reporting at brokeinphilly.org.