In their campaign for Prop 22, Uber and Lyft promised drivers good pay, benefits, and flexibility. But a report — released today by the National Equity Atlas and Rideshare Drivers United (RDU) — reveals that Prop 22 has stripped rideshare drivers of vital employment rights and caused them to receive subminimum wages.

The report, which is based on an analysis of real driver data, reveals that the average net earnings of rideshare drivers in California are just $6.20 per hour. Given the fact that rideshare drivers are disproportionately people of color and immigrants, the poverty wages drivers earn under Prop 22 are deepening racial inequities. If rideshare companies were forced to respect drivers’ labor rights, they would earn an average of three times more per hour.

   

How We Conducted This Study

This is the first study to use independently collected driver data to assess driver pay under Prop 22 as well as the first pay methodology developed by and for drivers. It features data disaggregated by race and ethnicity, and it builds upon a previous study conducted by the Atlas and RDU that analyzed rideshare drivers’ access to health care. The organizations partnered with 55 drivers working across the state’s major rideshare markets to collect and analyze their earnings and work condition data. Data was collected from November 1, 2021 to December 12, 2021, using the Driver’s Seat Cooperative mobile app.

   

Policy Implications

Working conditions and compensation in the rideshare industry have significant consequences for millions of California’s workers and their families. Prop 22 gives Uber and Lyft a free pass to pay their drivers poverty wages  and deny them critical rights and protections. 

Now, these companies are working to pass similar laws across the US, which threatens to undermine job quality for all app-based workers as well as workers in other sectors. To protect full labor rights for all workers, the study’s authors lift up several actionable priorities for policymakers, including ending the widespread abuse of independent contractor status and requiring that app-based companies make their algorithms transparent.