Seattle greenlights minimum wage for Uber and Lyft drivers

(Reuters) — The Seattle Town Council handed a minimal pay usual for drivers for corporations like Uber and Lyft on Tuesday.

Below the ordinance, efficient January, the drivers will now earn no less than $16.39 in line with hour – the minimal salary in Seattle for corporations with greater than 500 staff.

Seattle’s legislation, modeled after a equivalent law in New York Town, objectives to cut back the period of time drivers spend “cruising” with out a passenger via paying drivers extra all the way through the ones instances.

Town officers argue this will have to save you Uber and Lyft from oversaturating the marketplace at drivers’ expense, however the firms say it will successfully drive them to dam some drivers get entry to to the app. Each Uber and Lyft have locked out drivers according to the NYC legislation.

“The Town’s plan is deeply mistaken and can if truth be told smash jobs for 1000’s of other people — as many as four,000 drivers on Lyft on my own — and force rideshare firms out of Seattle,” Lyft stated in a commentary.

Uber didn’t straight away reply to request for remark.

Researchers on the College of California, Berkeley, and New York’s New Faculty, who analyzed the Seattle ride-hailing marketplace the usage of town knowledge and a motive force survey, discovered drivers internet best about $nine.70 an hour, with a 3rd of all drivers operating greater than 32 hours a week.

However a learn about of knowledge supplied via Uber and Lyft confirmed maximum ride-hail staff in Seattle are part-time drivers whose income are more or less in step with the town’s median, defying some perceptions of drivers operating full-time for little pay.

(Reporting via Tina Bellon in New York and Rama Venkat in Bengaluru; Modifying via Simon Cameron-Moore)

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