Uber CEO Dara Khosrowshahi, whose annual salary is more than $12 million, accidentally revealed on Twitter that Uber Eats drivers can hardly make more than the minimum wage in San Francisco. After tweeting about his experience and profits working on the app for a day.
“It took a few hours for @UberEats to deliver,” he wrote Saturday. “SF is an extremely beautiful city. The restaurant staff are lovely every time, busy!!”
A Twitter user asked him to share his travel details on the food delivery app. And the shipping record he posted shows he earned $106.71 in five and a half hours, or just $19 an hour. The San Francisco minimum wage is $16.07.
An Uber spokesperson said the delivery took place in three and a half hours. This means his hourly wages are nearly $30 an hour. That̵7;s higher than the local, state and federal minimum wage. They did not answer questions about the median income of drivers in San Francisco and nationally compared to the minimum wage. According to the company, as of April 2021, Uber drivers in San Francisco on the app 20 hours a week will be paid a median wage of $25.28 an hour before tips or expenses.
Uber Eats drivers, part-time contractors providing transportation, food, healthcare, etc., tend to go home less than that number. sometimes less than the minimum wage
“If you’re trying to earn just the shipping fees alone. It comes out about $5 an hour,” said Peter Young, a ride-sharing driver who works for Uber Eats and other companies. in Los Angeles told The Guardian earlier this year. “A good day for me might be to earn $100 before gas and eight hours of work expenses,” adding, “I’m looking for another job. I can’t keep doing this.”
Last fall, major gig economy companies like Uber, Instacart and Lyft approved Proposition 22, a California voting initiative that exempts employees for these companies from state laws that require companies to vote on their behalf. Classify gig workers as employees and provide benefits. Companies are spending their opponents 10 to 1, spending more than $200 million on the Prop 22 campaign, making it the most expensive state ballot measure in history. of the state of California
As a concession for labor groups, companies have made provisions that they will offer compensation to subsidize employees’ personal medical care. But survey results show that most drivers are ineligible for coverage.
“They know a lot of drivers are already using Medicare and Medi-Cal,” said Jerome Gage, a Southern California driver for Uber and Lyft and an organizer of the event. MarketWatchRefers to state and federal health programs for low-income earners. “If you have a medical plan according to your employer. That will disqualify you as well. They put all these obstacles in place.”
The ballot measure was in response to AB 5, a law in California. This is a huge market with many gig economy companies headquartered. It forced companies, Uber and others to refuse to comply with the law and threatened to shut down their California operations.
Mr Khosrowshahi’s post also highlighted the peculiar economy of a company like Uber, despite his great payoff. With a market capitalization of nearly $100 billion, Uber has never been profitable. Instead of keeping Uber’s influence and prevalence through venture capital funding,