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Uber, Lyft and other gig companies are rolling out guaranteed minimum earnings and injury protection, the first of the new worker benefits that they promised in connection with a ballot measure that ensures they don't have to make their drivers employees.
Why it matters: The companies presented these provisions of the ballot proposition — Prop 22, which California voters passed last month — as a compromise between treating drivers as independent contractors and treating them like employees.
Details:
- Minimum earnings: Drivers will now earn at least 20% above the minimum wage in the city where they're driving, plus $0.30 per mile for expense.
- Health insurance stipend: Starting Jan. 1, drivers who work at least 15 hours per week will be eligible for a stipend to help cover the premium on their individually purchased insurance plans.
- Injury protection: Drivers will now be covered under company-provided injury protection for certain accidents that happen while they're on the job.
- Customer fees: Uber is adding a fee (ranging from $0.99 to $2.00 on delivery, and $0.30 to $1.50 on rides) and DoorDash is considering increasing its service fees, while Lyft says it's not making changes at this time. Postmates and Instacart did not provide Axios with a response.
Be smart: While this is more than the drivers have gotten before, they're not what employees are entitled to by law, including a range of employment rights beyond financial benefits.
Go deeper: Deep Dive — The gig economy in 2020
Editor's note: The story has been updated with information about the impact on customer fees.