Governor Jay Inslee signed a small wage need for Uber and Lyft drivers across the Northwestern state into law on Thursday, marking the first time a U.S. state has implemented industry-wide ride-hailing compensation guidelines.
Allowing someone else to manage driving and traffic difficulties is sometimes safer or more convenient. Uber and Lyft, the ultimate transportation service corporations, sprang out of this notion.
In a race to the finish line, Uber released its long-awaited initial public offering (IPO) prospectus two weeks after rival Lyft went public.
Although the two primary taxi alternative networks services in the United States appear to be interchangeable, there are variations between them.
Lyft is a ride-sharing service that operates in the United States and Canada. The organization has strict specifications for the cars that drivers use and different service categories and levels. The Lyft app for cellphones alerts passengers to the driver's arrival and estimates the fare ahead of time.
Customers can use Uber in cities around the United States and Canada and in the EU, Central, and South America. Uber also defines vehicle specs as well as many different service kinds. The Uber app connects customers with drivers and estimates the cost of a trip in advance.
Lyft was founded in 2012 and is still going strong. Under the moniker Zimride, Logan Green and John Zimmer launched the company. To concentrate on Lyft, the team sold Zimride, a peer-to-peer ridesharing matchmaker that connects individuals who want to carpool long distances. Green is the company's current CEO, while Zimmer is the president.
Uber is a far larger firm than Lyft, and it has been criticized for sexual harassment cases and using software to follow Lyft drivers.
Former and present employees of color and female workers filed a class-action lawsuit against Uber. After 20 employees were fired for sexual harassment in 2017, the corporation reached a $10 million settlement.
In 2017, the FBI launched an investigation into Lyft's usage of technologies to track its drivers. According to a report in The Wall Street Journal, authorities are investigating Uber's use of software to obtain information on drivers who work for both firms and learn more about Lyft's service rates.
Except for Seattle, drivers throughout Washington will receive a minimum of $1.17 per mile and $0.34 per minute, with a minimum compensation of $3 each trip.
Under the new law, drivers will be eligible for paid sick time, family medical leave, long-term care, and workers' compensation. This mandated program pays benefits to employees who are ill on the job. Drivers will be able to file an appeal if someone deletes their names from the applications.
Drivers in Seattle will continue to earn their minimum rates of $1.38 per mile and $0.59 per minute at a minimum of $5.17 each trip after the city enacted its ride-hail pay standard in September 2020.
The bill, which has the support of Uber and Lyft, also strips cities and counties of their regulatory authority, prohibiting them from imposing additional restrictions on businesses.
It also underscores that ride-hailing drivers are not employees, a point of contention between labor unions and gig economy companies such as Uber and Lyft.
Gig firms oppose any reclassification, while labor groups argue that drivers should be recognized as employees with better benefits.
In a statement, Uber's head of public policy in the Western United States, Ramona Prieto, stated, "This new law offers drivers what they want - to be autonomous while obtaining historic new perks and protections." Uber believed that the rule would repeat in other cities, states, and nations.
The Teamsters Union Local 117, which was also behind the drive for the Seattle wage norm, has endorsed the new Washington law.
In the United States, only Seattle and New York City have implemented minimum wage requirements for ride-hailing drivers thus far.