A Level Playing Field for Gig Workers:
Road to Better Collective Action
During the webinar ‘A Level Playing Field for Gig Workers,’ on October 27, 2023, we want to explore how gig workers can regain their negotiation power and build a collective voice.
We will address the issue from different angles: research and regulation, worker-owned cooperatives, and other solutions to help gig workers set up collective action and protect their labor rights.
Curious? You can already secure your spot by visiting the event’s webpage:
NEW PODCAST EPISODE
Grab and Gojek, apps that serve many purposes, are centralizing and formalizing Indonesia's informal labor market. What problems are associated with this? And what does this teach us about the gig economy worldwide?
Martijn Arets explores this situation in the latest episode of The Gig Work Podcast:
Dear reader,
What events made deadlines in the past two weeks?
The launch of the first Fairwork US Ratings Report is definitely at the top of the list. It was highly anticipated, considering that, due to their geographical position, the United States is home to more gig platforms than any other country and the birthplace of some platform economy giants like Uber.
Fairwork researched three ride-hailing platforms (Alto, Uber, and Lyft), five delivery platforms (EatStreet, DoorDash, GrubHub, Instacart, and Shipt), two domestic work platforms (Handy and Task Rabbit), two warehousing/temp staffing platforms (Wonolo and Bluecrew), and one elderly care platform (Papa).
Unfortunately, according to the researchers, only some digital labor platforms analyzed are taking adequate measures to guarantee minimum thresholds of decent work for their workers. Two of them, Alto and Bluecrew, could ensure their workers earn the minimum wage after costs, and besides Papa, they took adequate steps to mitigate workers' risks at work, offering some forms of insurance. Papa also committed to translating contracts to give some help to Spanish workers.
Besides that, Fairwork researchers couldn’t find evidence that any of the 13 platforms provide fair contracts, transparent systems to manage deactivations or terminations, anti-discrimination policies, or freedom of association. Still today, independent contractors working through digital platforms are liable for being sued for engaging in collective action.
This scenario results in Alto, Bluecrew, and Papa scoring two points and all the remaining companies scoring zero.
“Platform work is not inherently good or bad,” researchers underlined. “Alternative models exist, but they must be supported by policymakers, consumers, and investors.”
This report comes in an eventful year for the US platform economy: over the past few months, workers across all platforms and states have raised their voices and protested different issues: minimum pay, lack of safety, alleging wage theft, taxes, high costs, harassment, air pollution, poor benefits, and unfair deactivation.
However, many unresolved situations remain: take the dispute between New York City, taxi drivers, and ride-hailing companies.
In July, Doordash, GrubHub, Uber, and Relay filed lawsuits alleging that a recently greenlit 17.96 dollar hourly minimum wage for app delivery workers would blow their business. DoorDash accused the city’s Department of Consumer and Worker Protection of relying on flawed data to devise the new rate. According to DoorDash, the increased wage “will inevitably mean less revenue for local businesses and fewer earning opportunities for workers.”
It’s easy to understand how such a debate could influence the gig workers’ fate in other sectors too.
Speaking of open debates, one must mention the recent California Supreme Court decision to review the constitutionality of Proposition 22.
This 2020 voter-approved ballot measure defines app-based transportation and delivery drivers for companies like Uber and Lyft as independent contractors rather than employees. 59% of voters approved it after a $200 million campaign financed by the companies, and now California’s top court is reviewing the case.
On August 17, Minneapolis Council members voted to send an ordinance to Mayor Jacob Frey that would increase wages and add other protections for ride-hailing drivers.
The proposal immediately met with resistance: Uber and Lyft said this new law could drive up prices or even drive them out of the city.
Unfortunately, Mayor Frey vetoed it a week later, announcing an agreement with Uber over pay minimums.
However, as of August 24, there was no agreement for any guarantees for Lyft workers, and the fight is far from being over for the drivers.
To give an overview of the legislative scenario in the United States, we must say that some laws have succeeded in being passed: the Seattle City Council passed an ordinance in August that may protect app-based workers from being unjustly “deactivated.” Now apps are required to provide workers with notice and a human review process.
In Washington state, ride-hailing drivers will be entitled to unemployment insurance and paid family and medical leave, thanks to the HB1570 bill. Governor Jay Inslee needs to sign it into law.
In conclusion, the open debates demonstrate that the goal is not to drive the platforms out of the United States but to guarantee better labor rights to people increasingly relying on app-based work to make a living.
Both workers' strikes and legislative proposals are good ways to push for a solution.
We hope that the workers’ requests will find answers soon.
Have a nice day,
The WageIndicator Gig Team
Argentina - The Municipality of Río Grande reported that they would raise the amount of fines against those drivers who provide passenger transport services without being part of the public or the private authorized service.
Australia - A Sidney food delivery driver has died colliding with a ute. He was the 13th worker known to have died in Australia in the transport gig worker industry since 2017. Reforms have been called to make the deliveries safer.
Philippines - There are low scores for rated platforms from the second Fairwork Philippines Report. GrabCar leads the 2023 table with three points out of ten. GrabExpress and Grab Food scored two out of ten. The motorcycle taxi and delivery service Angkas and the delivery and courier service Lalamove got one point. All other platforms (Borzo, FoodPanda, Joyride, Joyride Car, Maxim, and TokTok) scored no points.
United Kingdom - London riders recently came to the streets to contest Uber Eats low fares. They “completely blocked all Uber Eats deliveries” in protest after accusing the company of lowering the trip base rate.
Quote: “Most workers doing platform work as independent contractors are immigrants and people of color. The work is not only racialized but racializing.” (Prof. Veena Duval, Principal Investigator for Fairwork US)
Argentina - Uber has started offering new transportation motorcycle services in Córdoba.
Azerbaijan - Wolt has denied the veracity of rumors about the suspension of its activities. Media reported the Food Security Agency ordered the platform suspended for food safety violations.
Australia - The Australian Communications and Media Authority fined the food delivery company DoorDash for sending spam emails and texts.
Canada - Teens can order food on the Uber Eats app without their parents doing it in their place. Uber Rides also launched teen accounts earlier this year.
Did you know? E-hailing company Bolt has introduced a feature enabling customers to book rides 72 hours before. Uber started doing the same in 2020.
Germany
- Delivery Hero, the multinational online food ordering and delivery company that has owned Glovo since 2021, has raised its revenue prospects for the rest of 2023, contemplating growth investments and focusing on Asia.
- Several fresh product brands seem no longer to supply the online supermarket Gorillas. The delivery service, increasingly lacking capital, has already withdrawn from Spain, Portugal, and France.
Did you know? Turkish grocery delivery firm Getir announced a global restructuring, resulting in 2,500 layoffs across five countries.
Greece - Uber has launched a new sea service, allowing customers to rent a luxury boat to travel between the different beaches of Mykonos.
India - To accelerate the electric transformation of Indian hyperlocal fleets, Gogoro, a leader in battery-swapping ecosystems, announced a vehicle partnership with Swiggy, India’s on-demand convenience delivery platform.
Japan - Convenience store chain Lawson has become the first retailer in Japan to offer home deliveries using Uber Eats in every region of the country.
Kenya - Domino’s Pizza’s agreement with Glovo aims to hasten deliveries in Nairobi.
Poland
- Wolt Drive couriers will deliver drugstore products within an hour.
- Kontigo drugstore has established cooperation with Glovo, enabling care and make-up products to be available for delivery in 14 cities.
Did you know? Food delivery platform PedidosYa operates in 15 countries in Latin America and plans to expand to include more services.
South Africa - In the year of its seventh birthday in South Africa, Bolt can count on 40,000 drivers across 23 cities, as per company reports.
Spain - Uber launched its group trip service in Tenerife. Uber Van vehicles can transport up to 6 and 'Van XL' up to 9 passengers.
Sweden - In a press release, Foodora stated it had achieved a turnover of 4,946 million Swedish krona, 25 percent up on the previous year.
The Netherlands - Uber disembarked in the cities of Venlo and Venray.
UK
- Deliveroo lifted its earnings guidance sharply after it improved its algorithm to deliver meals and groceries more efficiently, sending its shares up 4%.
- Majestic, the UK's largest specialist wine retailer, has partnered with Uber Eats to offer its expansive range of wines, beers, and spirits through the speedy delivery app.
Did you know? Brazilian microworkers’ platform remuneration has progressively fallen in recent years, especially after the pandemic. Microwork consists of simple tasks that can be completed online in a short time.
Germany - Riders protested at Lieferando headquarters in Berlin against the company’s refusal to negotiate a collective agreement. The core demands include an hourly wage of 15 euros, a 13th-month salary payment, and reasonable bonuses for evening, Sunday, and public holiday shifts.
Nigeria - To overcome Uber and Bolt’s objections, the Amalgamated Union of App-Based Transport Workers Of Nigeria (AUATWON) changed its name to the Amalgamated Union of App-based Transporters of Nigeria (AUATON), dropping the contentious “workers” tag. Platforms argued that drivers cannot form trade unions because they are independent contractors, not employees.
Spain
- Tenerife taxi drivers denounced "coexistence problems" with Uber.
- In Madrid, Glovo, Uber Eats riders, Amazon delivery people, and VTC drivers have been suffering the effects of the heat reaching 40 degrees.
- Taxi drivers in Zaragoza are not using the transport application launched by the Aragonese capital as expected. MoZa (Zaragoza Mobility) could be a valid alternative to well-known ride-hailing platforms like Uber and Cabify, but it is still in the initial phase.
Ley Rider: Many food delivery riders working through Glovo, Uber Eats, or JustEat keep criticizing that two years after the Ley Rider was approved, there are still precarious working conditions and even reprisals for protesting workers.
Turkey - A new association has been formed to support delivery workers: based in Bağcılar, it’s called Motorlu Kurye İşçileri Derneği and claims to represent the motocouriers’ voice.
United Kingdom - Sixty-six delivery riders have been arrested in London this year amid a Home Office crackdown on illegal workers.
United States - Reports filed to the Department of Labor show that Amazon spent more than $14.2 million on consulting in 2022 to prevent its drivers from joining the International Brotherhood of Teamsters labor union.
Argentina - In the midst of the controversy over Uber and Cabify's unfair competition, the Municipal Council of Rosario approved the mandatory use of electronic platforms for the public taxi service, facilitating users already accustomed to using applications.
India - Delhi-based gig workers are discussing the Rajasthan Platform-Based Gig Workers Act. According to some, the national capital should introduce similar legislation. In contrast, others said the Rajasthan Act left them disappointed.United States - The New York Taxi & Limousine Commission proposed the ‘Green Rides Initiative.’ All of the city’s Uber and Lyft vehicles must produce zero carbon emissions or be accessible to those with disabilities by 2030.
United States - The New York Taxi & Limousine Commission proposed the ‘Green Rides Initiative.’ All of the city’s Uber and Lyft vehicles must produce zero carbon emissions or be accessible to those with disabilities by 2030.