View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Uber, Lyft Drivers Struggle With High Gas Prices

When Adam Potash started driving for Lyft six months ago to help make ends meet, he was happy with the pay. The business was far from lucrative, but he was making about $200 a day before paying for costs like gas and car maintenance.

But as gas prices have risen in recent weeks, Mr. Potash has barely been breaking even. To compensate, he has focused on driving during peak customer hours and tried to fill up at cheaper gas stations in the area around San Francisco where he works. He has also reduced his driving time from about 45 hours each week to roughly 20 hours.

“It hurts. I don’t have money coming in,” Mr. Potash, 48, said of his reduced hours. “But I’m not willing to operate at a loss.”

Gig workers who drive for ride-hailing and delivery companies like Uber, Lyft and DoorDash have been hit hard by rising gas prices, because their ability to earn money is tied directly to driving hundreds of miles each week. And because the drivers are contract workers, the companies do not reimburse them for the cost of fueling up.

blog post on Monday.

DoorDash announced a gas rewards program on Tuesday. Those who use a prepaid debit card designed for DoorDash workers will get 10 percent cash back at gas stations, the company said, and DoorDash is adding bonus payments depending on miles driven. Grubhub also said it would boost driver pay.

Both Uber and Lyft say drivers have been making more money since lockdowns lifted than they did earlier in the pandemic or even prepandemic, even when accounting for rising gas prices. And both companies are promoting a partnership with an app called GetUpside that offers some cash back rewards for getting gas.

Gridwise, an app that helps drivers track their earnings and tallies data, found that drivers’ earnings had risen nationally in recent months, from an average of $308 per week in early January to $426 in early March. But gas costs for ride-hailing drivers have also gone up, from $31 per transaction to nearly $39 in the same period.

Uber and Lyft say the entirety of their new gas fees — 35 to 55 cents per trip for Uber and 55 cents for Lyft — will go to the drivers. But some drivers say the action is inadequate. Gas prices, on average, have increased 49 percent in the past year, according to AAA.

“That literally insulted every driver, and that was their first communication since gas prices were going up,” said Philippe Jean, an Uber and Lyft driver in Coopersburg, Pa.

Jennifer Montgomery, an UberEats driver in Las Vegas, where gas costs $5 per gallon, agreed that the gas fee “doesn’t even put a dent” in the cost of fuel, which for her has been at least $30 more each day since prices began to increase.

Ms. Montgomery, 40, said she was becoming disillusioned with the job, and had begun looking for other work that didn’t require her to drive. She has cut her six-hour, daily shifts in half, because “it’s really not a profit anymore.”

“I don’t want to deliver anymore,” she said. “Especially when you have bills to pay and rising cost of rent and mortgage, groceries — it affects everything.”

Mr. Jean mostly drives for Uber and Lyft during the winter and spring, when his work as a handyman tends to slow down. He said he enjoyed interacting with passengers and usually made $300 to $400 per week, with about $60 of that going to filling his tank.

Lately, though, Mr. Jean has been paying twice that amount for gas, and has had to cut back elsewhere to compensate — including by reducing his car insurance coverage.

“I’m driving Uber now hoping not to get in an accident, because if I do, I’m going to lose my car completely,” he said.

The gas price woes have actually caused Mr. Jean to drive more in the short term, because people with cars that get poor gas mileage have told him they have stopped driving. With his hybrid Toyota Prius, he figured he would be able to snap up some of their business and still be able to make some money. But Mr. Jean said he would most likely give up Uber altogether later in the spring when his handyman work picks up again, because of the high gas prices.

He questioned whether he or other drivers were even profiting from the ride-hailing business at all, after all of the costs involved.

“I think personally if I sat down and did the numbers, it would be break-even,” Mr. Jean said. “I don’t think we’re making money on it anymore. I think I’m afraid to admit it to myself, because then I would definitely stop doing it.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

EXCLUSIVE Uber revamps driver pay algorithm in large U.S. pilot to attract drivers, article with image

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

The Uber Hub is seen in Redondo Beach, California, U.S., March 25, 2019. REUTERS/Lucy Nicholson/File Photo

Register now for FREE unlimited access to Reuters.com

Feb 25 (Reuters) – Uber Technologies Inc (UBER.N) is testing a new driver earnings algorithm in 24 U.S. cities that allows drivers to see pay and destinations before accepting a trip and raises the incentives for drivers to take short rides in an effort to attract more drivers.

The changes, which are currently in pilot programs, mark the most wide-ranging updates to Uber’s driver pay algorithm in years and come at a time when the company is still trying to win back drivers who left at the start of the pandemic. Fares paid by consumers are not affected.

Drivers have long demanded the ability to see the fare and destination before accepting a trip, but Uber has resisted, saying it could open the door to drivers cherry-picking trips or discriminating against riders in disadvantaged neighborhoods.

Register now for FREE unlimited access to Reuters.com

Uber already has a similar program in California, launched in the wake of a 2020 state battle over gig worker rights to prove its drivers are independent contractors.

But the company said its latest fare pilot in the United States was not related to gig worker regulation. The test has been rolled out in cities across Texas, Florida and the Midwest where gig worker reforms are not on the agenda.

“Gig work is very competitive, not just with Lyft (LYFT.O) but other platforms, and we think this feature really enhances our platform’s competitiveness versus others,” said Dennis Cinelli, Uber’s head of mobility in the United States and Canada.

Cinelli said the pay changes at this point would not impact consumer prices, adding the changes “aren’t financial features.”

Uber declined to comment on the financial impact of the changes for the company, which could mean it has to incur higher costs for short trips.

Cinelli said the company had not seen any discrimination by drivers in California since the policy launched there in 2020.

“Otherwise, we wouldn’t have rolled it out at this time,” he said, adding that Uber had the ability to deactivate drivers who repeatedly declined trips based on race or low-income areas.

Providing drivers with upfront pay details meant the company also had to reduce earnings for longer trips to prevent drivers from avoiding short rides, Cinelli said.

Uber said data from some cities with upfront pay have shown a 22% average increase in driver earnings for trips in which the distance to the pickup location is longer than the trip itself.

Driver responses were mixed on some online groups. Some complained the new algorithm seemed arbitrary and no longer allowed them to calculate pay based on a per-mile (per-km) basis.

“My earnings are already destroyed by the high prices for gas and now Uber is taking even more money away from me on long trips,” said Kevin Hernandez, a Houston driver.

Other drivers in online groups said the upfront fare information allowed them to select only higher-paying rides, with several drivers sharing screenshots of increased earnings since the altered algorithm was launched.

Expansion will depend on drivers. “If we’re not seeing it attract and retain drivers we wouldn’t roll it out further,” Cinelli said.

Register now for FREE unlimited access to Reuters.com

Reporting by Tina Bellon; Editing by Peter Henderson and Sandra Maler

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Wall Street Warms Up, Grudgingly, to Remote Work, Unthinkable Before Covid

In private, many senior bank executives tasked with raising attendance among their direct reports expressed irritation. They said it was unfair for highly paid employees to keep working from home while others — like bank tellers or building workers — dutifully come in every day. Salaries at investment banks in the New York area averaged $438,450 in 2020, up 7.8 percent from the previous year, according to data from the office of the state comptroller, Thomas P. DiNapoli.

Two senior executives, who declined to be identified discussing personnel matters, said they might push out subordinates who are not willing to come back to the office regularly. Another manager expressed frustration about a worker who refused to show up at the office, citing concern about the virus — even though the person had recently traveled on vacation.

Executives “have not felt that they could put on pressure to get people back in the office — and those who have put on pressure have gotten real pushback,” said Ms. Wylde, of the Partnership for New York City. “Financial services is one of those industries that are hugely competitive for talent, so nobody wants to be the bad guy.” She expects that big financial firms will eventually drive workers back into the office by dangling pay and promotions.

For now, banks are resorting to coaxing and coddling.

Food trucks, free meals and snacks are occasionally on offer, as are complimentary Uber and Lyft rides. Dress codes have been relaxed. Major firms have adopted safety protocols such as on-site testing and mask mandates in common areas. Goldman, Morgan Stanley and Citigroup are requiring vaccinations for workers entering their offices, while Bank of America asked only inoculated staff to return after Labor Day. JPMorgan has not mandated vaccines for workers to return to the office.

At Citi, which asked employees to come back for at least two days a week starting in September, offices are about 70 percent full on the days with the highest traffic. Citi, whose chief executive, Jane Fraser, started her job in the middle of the pandemic, has hired shuttle buses so that employees coming into Midtown Manhattan from suburban homes can avoid taking the subway to the bank’s downtown offices. To allay concerns about rising crime in New York, at least one other firm has hired shuttle buses to ferry people a few blocks from Pennsylvania Station to offices in Midtown, Ms. Wylde said.

Remote working arrangements are also emerging as a key consideration for workers interviewing for new jobs, according to Alan Johnson, the managing director of Johnson Associates, a Wall Street compensation consultancy.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

California’s Gig Worker Law Is Unconstitutional, Judge Rules

A California law that ensures many gig workers are considered independent contractors, while affording them some limited benefits, is unconstitutional and unenforceable, a California Superior Court judge ruled Friday evening.

The decision is not likely to immediately affect the new law and is certain to face appeals from Uber and other so-called gig economy companies. It reopened the debate about whether drivers for ride-hailing services and delivery couriers are employees who deserve full benefits, or independent contractors who are responsible for their own businesses and benefits.

Last year’s Proposition 22, a ballot initiative backed by Uber, Lyft, DoorDash and other gig economy platforms, carved out a third classification for workers, granting gig workers limited benefits while preventing them from being considered employees of the tech giants. The initiative was approved in November with more than 58 percent of the vote.

But drivers and the Service Employees International Union filed a lawsuit challenging the constitutionality of the law. The group argued that Prop. 22 was unconstitutional because it limited the State Legislature’s ability to allow workers to organize and have access to workers’ compensation.

his ruling that Prop. 22 violated California’s Constitution because it restricted the Legislature from making gig workers eligible for workers’ compensation.

“The entirety of Proposition 22 is unenforceable,” he wrote, creating fresh legal upheaval in the long battle over the employment rights of gig workers.

“I think the judge made a very sound decision in finding that Prop. 22 is unconstitutional because it had some unusual provisions in it,” said Veena Dubal, a professor at the University of California’s Hastings College of Law who studies the gig economy and filed a brief in the case supporting the drivers’ position. “It was written in such a comprehensive way to prevent the workers from having access to any rights that the Legislature decided.”

Scott Kronland, a lawyer for the drivers, praised Judge Roesch’s decision. “Our position is that he’s exactly right and that his ruling is going to be upheld on appeal,” Mr. Kronland said.

ballot proposal that could allow voters in the state to decide next year whether gig workers should be considered independent contractors.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Companies Begin to Mandate Covid Vaccines for Employees

Some of the nation’s largest employers, for months reluctant to wade into the fraught issue of whether Covid-19 vaccinations should be mandatory for workers, have in recent days been compelled to act as infections have surged again.

On Tuesday, Tyson Foods told its 120,000 workers in offices, slaughterhouses and poultry plants across the country that they would need to be vaccinated by Nov. 1 as a “condition of employment.” And Microsoft, which employs roughly 100,000 people in the United States, said it would require proof of vaccination for all employees, vendors and guests to gain access to its offices.

Last week, Google said it would require employees who returned to the company’s offices to be vaccinated, while Disney announced a mandate for all salaried and nonunion hourly workers who work on site.

Other companies, including Walmart, the largest private employer in the United States, and Lyft and Uber, have taken a less forceful approach, mandating vaccines for white-collar workers but not for millions of frontline workers. Those moves essentially set up a divide between the employees who work in offices and employees who deal directly with the public and, collectively, have been more reluctant to get the shots.

different set of reasons that are not primarily political. They say many of their members are worried about potential health side effects or bristle at the idea of an employer’s interfering in what they regard as a personal health decision.

Marc Perrone, the president of the United Food and Commercial Workers union, representing 1.3 million employees in grocery chains such as Kroger and at large meatpacking plants, said he would not support employer mandates until the Food and Drug Administration gave full approval to the vaccine, which is being administered on an emergency basis.

“You can’t just say, ‘Accept the mandate or hit the door,’” Mr. Perrone said in an interview on Monday.

After Tyson announced its vaccine mandate on Tuesday, Mr. Perrone issued a statement that the union “will be meeting with Tyson in the coming weeks to discuss this vaccine mandate and to ensure that the rights of these workers are protected and this policy is fairly implemented.”

several meat plants became virus hot spots. Now, it is requiring its leadership team to be vaccinated by Sept. 24 and the rest of its office workers by Oct. 1. Frontline employees have until Nov. 1 to be fully inoculated, extra time the company is providing because there are “significantly more frontline team members than office workers who still need to be vaccinated,” a Tyson spokesman said.

Throughout the pandemic, companies have treaded carefully in carrying out public health measures while trying to avoid harm to their businesses.

Last year, when major retailers began requiring customers to wear masks, they quietly told their employees not to enforce the rule if a customer was adamant about not wearing one.

Companies like Walmart have tried a similarly tentative approach with vaccine requirements.

Walmart announced last week that it was requiring the roughly 17,000 workers in its Arkansas headquarters to be vaccinated but not those in stores and distribution centers, who make up the bulk of its 1.6 million U.S. employees.

In a statement, the retailer said the limited mandate would send a message to all workers that they should get vaccinated.

“We’re asking our leaders, which already have a higher vaccination rate, to make their example clear,” the company said. “We’re hoping that will influence even more of our frontline associates to become vaccinated.”

Lyft told their corporate employees last week that they would need to show proof they had been inoculated before returning to company offices.

Requiring vaccinations “is the most effective way to create a safe environment and give our team members peace of mind as we return to the office,” said Ashley Adams, a spokeswoman for Lyft.

But those mandates did not extend to the workers the companies contract with to drive millions of customers to and from their destinations. The drivers are being encouraged to be vaccinated, but neither Lyft or Uber has plans to require them.

Public health experts warn that limited mandates may reinforce the gaping divide between the nation’s high- and low-wage workers without furthering the public health goal of substantially increasing vaccination rates.

They also say it’s naïve to think that workers who resisted vaccines for ideological reasons would suddenly change their mind after seeing a company’s higher-paid executives receive the shots.

“Ultimately we want to ensure that they really have the broadest reach,” Dr. Kirsten Bibbins-Domingo, the vice dean for population health and health equity at the University of California, San Francisco, said of company directives. “Failing to do that, I think, will only cause others to be more suspicious of these types of mandates.”

Legally, companies are likely to be on solid ground if they mandate vaccines. Last year, the Equal Employment Opportunity Commission said employers could require immunization, though companies that do could still face lawsuits.

George W. Ingham, a partner at the law firm Hogan Lovells, said companies with mandates would potentially have to make difficult decisions.

“They are going to have to fire high performers and low performers who refuse vaccines,” he said. “They have to be consistent.” Reasons an employee could be exempted include religious beliefs or a disability, though the process of sorting those out on an individual basis promises to be an arduous one.

Companies may also have to contend with pushback from state governments. Ten states have passed legislation limiting the ability to require vaccines for students, employees or the public, according to the National Conference of State Legislatures.

Disney is among the few big companies pursuing a broad vaccine mandate for their work forces, even in the face of pushback from some employees.

In addition to mandating vaccines for nonunion workers who are on-site, Disney said all new hires — union and nonunion — would be required to be fully vaccinated before starting their jobs. Nonunion hourly workers include theme park guest-relations staff, in-park photographers, executive assistants and some seasonal theme park employees.

It was the furthest that Disney could go without a sign-off from the dozen unions that represent the bulk of its employees. Walt Disney World in Florida, for instance, has more than 65,000 workers; roughly 38,000 are union members.

Disney is now seeking union approval for the mandate both in Florida and in California, where tens of thousands of workers at the Disneyland Resort in Anaheim are unionized. Most of the leaders of Disney’s unions appear to be in favor of a mandate — as long as accommodations can be worked out for those refusing the vaccine for medical, religious or other acceptable reasons.

“Vaccinations are safe and effective and the best line of defense to protect workers, frontline or otherwise,” Eric Clinton, the president of UNITE HERE Local 362, which represents roughly 8,000 attraction workers and custodians at Disney World, said in a phone interview.

Mr. Clinton declined to comment on any pushback from his membership, but another union leader at Disney World, speaking on the condition of anonymity so he could speak candidly, said “a fair number” of his members were up in arms over Disney-mandated vaccinations, citing personal choice and fear of the vaccine.

“The company has probably done a calculation and decided that some people will unfortunately quit rather than protect themselves, and so be it,” the person said.

Lananh Nguyen contributed reporting.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Farewell, Millennial Lifestyle Subsidy

A few years ago, while on a work trip in Los Angeles, I hailed an Uber for a crosstown ride during rush hour. I knew it would be a long trip, and I steeled myself to fork over $60 or $70.

Instead, the app spit out a price that made my jaw drop: $16.

Experiences like these were common during the golden era of the Millennial Lifestyle Subsidy, which is what I like to call the period from roughly 2012 through early 2020, when many of the daily activities of big-city 20- and 30-somethings were being quietly underwritten by Silicon Valley venture capitalists.

For years, these subsidies allowed us to live Balenciaga lifestyles on Banana Republic budgets. Collectively, we took millions of cheap Uber and Lyft rides, shuttling ourselves around like bourgeois royalty while splitting the bill with those companies’ investors. We plunged MoviePass into bankruptcy by taking advantage of its $9.95-a-month, all-you-can-watch movie ticket deal, and took so many subsidized spin classes that ClassPass was forced to cancel its $99-a-month unlimited plan. We filled graveyards with the carcasses of food delivery start-ups — Maple, Sprig, SpoonRocket, Munchery — just by accepting their offers of underpriced gourmet meals.

tweeted, along with a screenshot of a receipt that showed he had spent nearly $250 on a ride to the airport.

“Airbnb got too much dip on they chip,” another Twitter user complained. “No one is gonna continue to pay $500 to stay in an apartment for two days when they can pay $300 for a hotel stay that has a pool, room service, free breakfast & cleaning everyday. Like get real lol.”

Some of these companies have been tightening their belts for years. But the pandemic seems to have emptied what was left of the bargain bin. The average Uber and Lyft ride costs 40 percent more than it did a year ago, according to Rakuten Intelligence, and food delivery apps like DoorDash and Grubhub have been steadily increasing their fees over the past year. The average daily rate of an Airbnb rental increased 35 percent in the first quarter of 2021, compared with the same quarter the year before, according to the company’s financial filings.

set up a $250 million “driver stimulus” fund — or doing away with them altogether.

I’ll confess that I gleefully took part in this subsidized economy for years. (My colleague Kara Swisher memorably called it “assisted living for millennials.”) I got my laundry delivered by Washio, my house cleaned by Homejoy and my car valet-parked by Luxe — all start-ups that promised cheap, revolutionary on-demand services but shut down after failing to turn a profit. I even bought a used car through a venture-backed start-up called Beepi, which offered white-glove service and mysteriously low prices, and which delivered the car to me wrapped in a giant bow, like you see in TV commercials. (Unsurprisingly, Beepi shut down in 2017, after burning through $150 million in venture capital.)

These subsidies don’t always end badly for investors. Some venture-backed companies, like Uber and DoorDash, have been able to grit it out until their I.P.O.s, making good on their promise that investors would eventually see a return on their money. Other companies have been acquired or been able to successfully raise their prices without scaring customers away.

Uber, which raised nearly $20 billion in venture capital before going public, may be the best-known example of an investor-subsidized service. During a stretch of 2015, the company was burning $1 million a week in driver and rider incentives in San Francisco alone, according to reporting by BuzzFeed News.

But the clearest example of a jarring pivot to profitability might be the electric scooter business.

Remember scooters? Before the pandemic, you couldn’t walk down the sidewalk of a major American city without seeing one. Part of the reason they took off so quickly is that they were ludicrously cheap. Bird, the largest scooter start-up, charged $1 to start a ride, and then 15 cents a minute. For short trips, renting a scooter was often cheaper than taking the bus.

But those fees didn’t represent anything close to the true cost of a Bird ride. The scooters broke frequently and needed constant replacing, and the company was shoveling money out the door just to keep its service going. As of 2019, Bird was losing $9.66 for every $10 it made on rides, according to a recent investor presentation. That is a shocking number, and the kind of sustained losses that are possible only for a Silicon Valley start-up with extremely patient investors. (Imagine a deli that charged $10 for a sandwich whose ingredients cost $19.66, and then imagine how long that deli would stay in business.)

Pandemic-related losses, coupled with the pressure to turn a profit, forced Bird to trim its sails. It raised its prices — a Bird now costs as much as $1 plus 42 cents a minute in some cities — built more durable scooters and revamped its fleet management system. During the second half of 2020, the company made $1.43 in profit for every $10 ride.

“DoorDash and Pizza Arbitrage,” about the time he realized that DoorDash was selling pizzas from his friend’s restaurant for $16 while paying the restaurant $24 per pizza, and proceeded to order dozens of pizzas from the restaurant while pocketing the $8 difference, stands as a classic of the genre.)

But it’s hard to fault these investors for wanting their companies to turn a profit. And, at a broader level, it’s probably good to find more efficient uses for capital than giving discounts to affluent urbanites.

Back in 2018, I wrote that the entire economy was starting to resemble MoviePass, the subscription service whose irresistible, deeply unprofitable offer of daily movie tickets for a flat $9.95 subscription fee paved the way for its decline. Companies like MoviePass, I thought, were trying to defy the laws of gravity with business models that assumed that if they achieved enormous scale, they’d be able to flip a switch and start making money at some point down the line. (This philosophy, which was more or less invented by Amazon, is now known in tech circles as “blitzscaling.”)

There is still plenty of irrationality in the market, and some start-ups still burn huge piles of money in search of growth. But as these companies mature, they seem to be discovering the benefits of financial discipline. Uber lost only $108 million in the first quarter of 2021 — a change partly attributable to the sale of its autonomous driving unit, and a vast improvement, believe it or not, over the same quarter last year, when it lost $3 billion. Both Uber and Lyft have pledged to become profitable on an adjusted basis this year. Lime, Bird’s main electric scooter competitor, turned its first quarterly profit last year, and Bird — which recently filed to go public through a SPAC at a $2.3 billion valuation — has projected better economics in the years ahead.

Profits are good for investors, of course. And while it’s painful to pay subsidy-free prices for our extravagances, there’s also a certain justice to it. Hiring a private driver to shuttle you across Los Angeles during rush hour should cost more than $16, if everyone in that transaction is being fairly compensated. Getting someone to clean your house, do your laundry or deliver your dinner should be a luxury, if there’s no exploitation involved. The fact that some high-end services are no longer easily affordable by the merely semi-affluent may seem like a worrying development, but maybe it’s a sign of progress.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<