Between Public and Private Mobility: Examining the Rise of Technology-Enabled Transportation Services (2016) / Chapter Skim
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5 Labor and Employment Issues
5 Labor and Employment Issues
Pages 83-97
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From page 83... ...
2 No data on the number of people driving for other TNCs were available for this study. 3 The census data on taxi and livery driver compensation discussed in this chapter represent earned income that includes tips less such driver expenses as gasoline and lease costs, enabling a direct comparison with TNC drivers' earned incomes, which may rely less than those of taxi drivers on tips as part of compensation (U.S.
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From page 84... ...
Taxi and limousine drivers rarely have health insurance or other employee benefits, however; this reduces their relative total compensation to the extent that those other jobs include benefits. Incomes vary substantially, even among full-time cab drivers.
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From page 85... ...
, as well as any taxes such as sales taxes on fare income. As noted above, taxi and limousine driver incomes often vary greatly, and it appears that the same can be said of TNC drivers.
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From page 86... ...
The reason for this is simple: neither the new nor traditional for-hire car transport industries offer much in the way of benefits with the notable exception of limousine companies, which hire drivers as employees and provide benefits. As a rule, traditional taxi drivers do not receive paid leave days, sick leave days, health insurance, retirement benefits, or the like.
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From page 87... ...
Allowing individuals to obtain subsidized insurance without being reliant on an employer enables independent contractors, such as those working for the ride service companies, to obtain individually the benefits traditionally provided by employers. Payment Practices As their fee, ride service companies deduct from drivers' earnings a percentage of the fare (20 percent and up)
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From page 88... ...
This high proportion of variable relative to fixed costs means that TNC drivers cover their costs (at the margin) more quickly and easily relative to cab drivers, making it much easier for them to work part-time and very short shifts if they prefer.
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From page 89... ...
Many taxi drivers have shifted to ride service companies, either instead of or in addition to their work for the taxi industry, and cab companies have noted driver shortages as a result. Many cities have reported that the number of available taxi drivers has been shrinking.
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From page 90... ...
Working Conditions Another issue raised by TNC drivers and their representatives concerns job security. A key aspect of the business model of ride service companies is the ratings of drivers that customers can assign at the end of each ride.
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From page 91... ...
. Taxi drivers want more control over the costs they are asked to bear, including lease costs, credit card processing fees, and outfitting of a vehicle to meet regulatory specifications, along with redress of the perceived unfairness of ride service companies facing fewer regulations and costs (Lazo 2014b)
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From page 92... ...
In mid-July 2015, the U.S. Department of Labor issued guidance to employers summarizing legal cases interpreting application of the Fair Labor Standards Act to the question of when workers can be classified as contractors rather than employees (Weil 2015)
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From page 93... ...
If net income for TNC drivers is consistently below that of taxi drivers, as currently may be the case after netting out expenses, the current shift of drivers from taxi companies to TNCs could reverse, especially as the taxi companies incorporate technologies for summoning drivers and paying for rides that make TNCs so attractive to travelers. At this unsettled point in time, labor markets appear to be adjusting as drivers seek better opportunities for themselves.
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From page 94... ...
On the other hand, the outcome of driver lawsuits against TNCs could alter the business models and employment opportunities of these and other firms in the shared economy. At the time of this writing, the California Labor Commission's ruling that an Uber driver is an employee rather than a contractor is under appeal, and the Oregon Bureau of Labor and Industries has ruled that Uber drivers are employees instead of independent contractors.
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From page 95... ...
2014. We Talked to Uber Drivers -- Here's How Much They Really Make.
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From page 96... ...
2015. Uber Drivers are Employees, Labor Commissioner Says.
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From page 97... ...
2015. The Application of the Fair Labor Standards Act's "Suffer or Permit" Standard in the Identification of Employees Who Are Misclassified As Independent Contractors.
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