The Seattle City Council unanimously passed legislation Monday that will establish a minimum wage for Uber and Lyft drivers and raise per-ride taxes to pay for city programs.Previously on Uber in Seattle:
Seattle Mayor Jenny Durkan introduced the pioneering “Fare Share” program in September as a way to extend the city’s worker protections to gig economy drivers. The program is the latest in a series of regulatory headaches for Uber and Lyft as regulators crack down on their labor practices.
“Our Fare Share plan invests in first-in-the-nation protections for drivers, more housing near transit, and transit projects that will help keep Seattle moving,” Durkan said in a statement Monday. “It is the right thing to do, and I applaud the City Council for moving quickly to ensure that more drivers can afford to live near where they work, and everyone, regardless of income or ability level, has access to high-quality transit.”
Durkan plans to sign the legislation into law later this week.
Fare Share introduces a new tax of 51 cents per Uber and Lyft ride to fund affordable housing construction and complete the city’s beleaguered streetcar project. Seattle already charges 24 cents per Uber and Lyft ride to fund wheelchair accessible taxis and cover the costs of regulating the industry. The new tax will bring the total fees to 75 cents per ride. It will apply to all rides that originate within Seattle city limits. Durkan estimates the tax will generate $133 million in new revenue by 2025.
(Editor’s note: The new fee is technically 57 cents but 6 cents will be offset by lowering existing fees on ride-hailing services)
Details of the minimum wage for drivers are still being hammered out....MORE
April 2018
"Seattle considers raising rates for Uber and Lyft rides to boost driver compensation"
Well this doesn't fit Uber's business plan at all.March 2017
Not.at.all.
But if it comes to pass, Seattle is probably the place for raising rates.
First off and most importantly, with the giant engine of Amazon funneling money from around the world into the city, there is more room for elasticity in both wages and costs.
The boom is huge. Using construction as proxy you get stories such as Construction Dive's February 1 piece:
Seattle crane count falls, still leads nation
Uber Gears Up to Block Bid to Form a Union in Seattle
This always seemed like a bigger story than most of the media was treating it as. Now that seems to have changed....
Dec. 2015
"Seattle is first city in nation to give Uber, other contract drivers ability to unionize"
Dec. 2014
"What Uber Hath Wrought: The Coming Digital Labor Movement":
Then there's July 2016's
Dear Teamsters: It Looks Like Uber Was Trying To Dig Up Dirt On The Seattle Local
