Woefully Little “Sharing” in the Neo-Liberal Ride-Hailing Industry

In previous posts, I have dealt with the ride-hailing company, Uber, as part of what is supposed to be a “sharing” economy, but is, in reality, a triumph of the greed and one-sidedness inherent in neo-liberalism. Two 2017 New York Times articles (January 15, 16) underscored the difficulties raised in those earlier posts and pointed to new, even more problematic outcomes. The articles dealt with Uber as well as Lyfft, Via, Juno, and Gett and their disastrous impact on the taxi industry. Declining dramatically are the number of taxicabs, trips by taxi, taxicab drivers (many of whom have switched to working for ride-hailing companies), the amount of money spent on fares, and the cost and value of the medallion needed to operate a taxi in New York. In contrast, the ride-hailing companies are growing rapidly. There are now 60,000 cars in New York City with ride-hailing apps, but only 13,000 yellow cabs.

Uber drivers tend to earn twice as much as taxi drivers. While they enjoy their higher income and being self-employed, they incur additional costs and responsibilities being on their own in a neo-liberal world. Because of the need to get high ratings from customers, there is great pressure on them to keep their newer-model cars well-maintained, clean on the outside and spic-and-span on the inside; to dress respectably; and even in some cases to provide refreshments for their passengers. These expenses, as well as the cost of automobile insurance, can eat up as much as 50% of an Uber driver’s earnings. Then, there is percentage the ride-hailing companies take off the top of a driver’s earnings.

Uber has great power over the drivers and there is little they could do when, for example, Uber raised its percentage from 10% to 25%. Since drivers are not employees, they are not entitled to a minimum wage, or sick and holiday pay. They also have little in the way of defense as Uber and the other ride-hailing companies move in the direction of driverless cars which would completely eliminate the need for drivers.

There is little sharing in the ride-hailing economy since the drivers do all of the work, pay all relevant expenses, and take on all of the responsibility. What they do share- and can ill-afford- is their relatively meagre net income with many others, especially the ride-hailing companies.

This not a defense of the traditional taxicab industry. My father was a New York City taxi driver who earned little and was ill-treated by the company that employed him. However, the neo-liberal world now in development in the ride-hailing industry- and in many other sectors of the economy- promises to be much worse. Uber is a far more powerful company- and infinitely richer- than the taxi companies of my father’s day. Uber has even less interest in those who do “gigs” than the old taxi companies had for their expendable drivers.