Under the ordinance, efficient January, the drivers will now earn at the least $16.39 per hour – the minimal wage in Seattle for firms with greater than 500 staff.
Seattle’s legislation, modeled after an analogous regulation in New York City, goals to cut back the period of time drivers spend “cruising” with out a passenger by paying drivers extra throughout these instances.
City officers argue this could forestall Uber and Lyft from oversaturating the market at drivers’ expense, however the firms say it might successfully power them to dam some drivers entry to the app. Both Uber and Lyft have locked out drivers in response to the NYC legislation.
“The City’s plan is deeply flawed and will actually destroy jobs for thousands of people – as many as 4,000 drivers on Lyft alone – and drive rideshare companies out of Seattle,” Lyft stated in a press release.
Uber didn’t instantly reply to request for remark.
Researchers on the University of California, Berkeley, and New York’s New School, who analyzed the Seattle ride-hailing market utilizing metropolis information and a driver survey, discovered drivers web solely about $9.70 an hour, with a 3rd of all drivers working greater than 32 hours per week.
But a research of knowledge offered by Uber and Lyft confirmed most ride-hail staff in Seattle are part-time drivers whose earnings are roughly according to town’s median, defying some perceptions of drivers working full-time for little pay. (Reporting by Tina Bellon in New York and Rama Venkat in Bengaluru; Editing by Simon Cameron-Moore)