About 2,500 drivers in New York are organizing to create what they say is a better deal for drivers than what the ride-hailing giants offer. For years

A Worker-Owned Cooperative Tries to Compete With Uber and Lyft

submited by

Style Pass

2021-05-29 12:30:10

About 2,500 drivers in New York are organizing to create what they say is a better deal for drivers than what the ride-hailing giants offer.

For years, Uber and other ride-hailing companies offered the promise of entrepreneurship to drivers. Drivers who were eager to set their own schedules signed up in droves, propelling the gig economy into a multibillion-dollar industry.

But some drivers never received the control and independence they had expected. They struggled with the costs of vehicle maintenance, loans and insurance, and they questioned whether Uber and Lyft paid a fair wage. Legislative efforts to grant them employment benefits were thwarted.

Now, dissatisfied drivers and labor advocates are forming worker-owned cooperatives in an attempt to take back some of the money — and power — in the gig economy.

The Drivers Cooperative, which opened for business in New York this week, is the most recent attempt. The group, founded by a former Uber employee, a labor organizer and a black-car driver, began issuing ownership shares to drivers in early May and will start offering rides through its app on Sunday.