Fed-Up Gig Workers Fight Back
Gig workers are fed up. Several hundred Uber and Lyft drivers are exploring a nonprofit, cooperative model that would entail the following:
- Creating a new ride-hailing app to drive for
- Electing leaders to manage the nonprofit, including the technology, driver supply, etc.
- Enacting transparent policies and community guidelines
The reason is quite apparent: declining driver pay. Gig workers for Uber and Lyft earned less on average in 2024—despite working more hours.
In 2024, Uber drivers saw a 4% drop in hourly pay, earning an average of $23.33, while Lyft drivers experienced a 6% decline, earning an average of $23.23 per hour.
Uber and Lyft drivers weren’t the only gig workers facing lower pay—food and grocery delivery drivers also saw declining earnings. In 2024, Uber Eats drivers' hourly wages dropped by 5% to $14.96, while DoorDash drivers saw a 3% decrease, bringing their average hourly pay to $12.23.
Despite these efforts, gig economy companies have largely sustained their business models. Uber posted an adjusted EBITDA of $1.8 billion in 2024, highlighting its financial resilience.
