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New York City Uber Drivers Unhappy with Compensation

Car Service Uber Faces Issues with Employee Wages

New York City Uber drivers lined up outside of the company's Queens-based office Monday in protest for the second time since September 8. The drivers, unsatisfied with the car service's low fares, demanded that the company increase fares for its uberX division, Uber's lowest-cost option.

Uber, an innovative car service available in numerous cities across 45 countries, including Raleigh, aims to offer reasonable fares, clean cars and unmatched convenience to their customers. At "the tap of a button" riders can be picked up by a driver close by within minutes, using their smartphone to request, pay for and even split a cab ride. While this seems like an ideal option for Uber riders, Uber's drivers in New York City, argue that appeasing the client isn't necessarily valuable to the company's employees — noting that even though fares decrease, the price of cars, gas and other costs associated with driving do not change.

Driving for Uber is far different than driving for most car services. Many Uber drivers that drive for uberX use their own vehicles, and make their own schedules, which means that the drivers are responsible for gas and wear and tear on their vehicle. When the company lowered their uberX fares in New York City in July, in order to compete with the well-known yellow taxis of the city, drivers argue it caused them to lose money.

Protesting drivers also argued a feature of uberX that includes a built-in 20% tip and prevents many riders from tipping additional if the service exceeds their expectations. New York City drivers believe that all of these factors combined have been damaging to their earnings. The drivers, claiming they felt as though they were not being heard individually, banded together to voice their concerns and have threatened a strike if conditions don't change.

Though higher-end Uber drivers from the black and SUV lines won their fight against the company last week, when a new policy forced them to accept lower fares for the uberX line, the manager of the New York City office does not appear to be budging with the drivers who still want to raise fares for the uberX line.

Originally a small San Francisco-niche business, Uber has rapidly grown from a small business to a global company, and is likely still working through kinks and growing pains of the market. This is not the first time that Uber drivers have expressed discontent with the company's low fares. Uber has also heard from drivers in cities such as Los Angeles, Seattle and home-base San Francisco.

With similar companies such as Lyft and Gett crowding the marketplace, Uber may need to adjust what works best based on the individual city. In the perfect marriage of utilizing innovative technology to meet real-world needs, Uber will continue to grow and change in an ever-evolving culture, in hopes of eventually finding that sweet spot between satisfying both customers, and employees.

Small Business Lawyer Raleigh

At the Law Office of D. Hardison Wood in Raleigh, NC we understand that running a business, small or large, is not only demanding, but also challenging. Like Uber, small businesses must meet customer needs while ensuring compliance with employee wages and scheduling. As a business owner, it is also imperative to have protection in the case of business disputes, such as the one that Uber faces.

Our experienced professionals work with small businesses in Raleigh, Cary, Apex and surrounding areas as in-house counsel, so that business owners can focus on what really matters — their business. We can assist in many areas of business law to provide counsel when your business needs it, taking the worry and stress off of you during busy times.

Are you a small business owner in the Raleigh area who needs in-house counsel? Call on the lawyers at the Law Office of D. Hardison Wood today! We would be happy to help you through a business dispute, or any other business law need!

This entry was posted in Business Law.