gig economy Archives - Talk Poverty https://talkpoverty.org/tag/gig-economy/ Real People. Real Stories. Real Solutions. Fri, 10 Jul 2020 14:29:18 +0000 en-US hourly 1 https://cdn.talkpoverty.org/content/uploads/2016/02/29205224/tp-logo.png gig economy Archives - Talk Poverty https://talkpoverty.org/tag/gig-economy/ 32 32 Everything You Need to Know About Today’s Instacart Strike https://talkpoverty.org/2020/03/30/coronavirus-instacart-strike/ Mon, 30 Mar 2020 20:50:39 +0000 https://talkpoverty.org/?p=29002 On March 25, the U.S. became the leading country in the world for coronavirus cases. As of March 30, there were more than 140,000 confirmed cases and 2,400 deaths, according to a Johns Hopkins University database.

Cities have all but shut down in response to public health advisories. Millions of people are working from home or other non-office locations in order to honor “social distancing,” leading to a surge in home deliveries for app-based workers like Instacart’s Shoppers, who are tasked with shopping and delivering customers’ groceries. Instacart itself reported that Shoppers have seen on average a 15 percent increase in basket sizes.

However, despite the heightened risk that Shoppers are facing by doing the work that is considered too dangerous for the general public, Shoppers say Instacart hasn’t made much of an effort to protect them from potential transmission or incentivized them to cease working despite the risks it poses.

Instacart initially said it would give two weeks’ paid leave through April 8 to any Shopper who tested positive for the coronavirus, despite the fact that tests are rarely accessible . However, one Shopper TalkPoverty spoke to said that they didn’t know a single person who had received paid sick leave.

In response, Instacart Shoppers nationwide walked off the job March 30, their second strike in four months, and are refusing to return until their demands are met. Because gig workers like Instacart Shoppers work alone, they rarely have face-to-face contact with one another, highlighting how extraordinarily prepared they must be to conduct a large-scale labor action such as this.

In a Medium post announcing the strike, Instacart Shoppers working with labor organization Gig Workers Collective wrote that they were demanding an added $5 of hazard pay per order as well as provision of complimentary sanitation supplies such as cleansing wipes and hand sanitizer, paid time off for Shoppers with preexisting conditions that put them at high risk if they contracted coronavirus or whose doctors advised them to self-isolate, and an extension of these benefits beyond April 8.

“Instacart has turned this pandemic into a PR campaign, portraying itself the hero of families that are sheltered-in-place, isolated, or quarantined,” Gig Workers Collective wrote.

“Instacart has refused to act proactively in the interests of its Shoppers, customers, and public health, so we are forced to take matters into our own hands. We will not continue to work under these conditions. We will not risk our safety, our health, or our lives for a company that fails to adequately protect us, fails to adequately pay us, and fails to provide us with accessible benefits should we become sick.”

Instacart Shoppers can make as little as $7 for up to three orders or $5 for up to five deliveries only, due to the company’s opaque algorithm structure for compensation, and aren’t automatically entitled to employment benefits such as sick leave or health care due to their independent contractor status. Some have argued that they are being misclassified and should be termed employees. In a historic first, the CARES Act, which President Trump signed into law March 27, extended unemployment benefits to gig workers. However, because these benefits are taxpayer-subsidized, they relieve gig companies like Instacart of any legal obligation to provide employee benefits.

Matthew Telles, a veteran Shopper in the Chicago suburbs, said that while he makes himself available on the Instacart app to work for as many as 77 hours a week, the amount of time he actually spends working for Instacart has dwindled since fewer and fewer batches can actually cover his expenses.

“I work anywhere from about zero to eight hours a week for Instacart, and that’s [only] when they pay enough to obtain my secured services,” he said, adding that the pandemic has driven down wages even more.

He explained that since authorities began encouraging people to stay home, Instacart has essentially begun bundling three orders into one by combining multiple “orders” into one batch. That allows the company to elide per-order pricing, leading Shoppers to accept batches that may promise a large amount of money that decreases when they reach the actual register to check.

If a customer asks for, say, 20 unique items, Shoppers are guaranteed a base pay plus tip that’s a particular percentage of the entire order. However, because grocers are now limiting the quantity of particular items one can buy, such as toilet paper and wipes, Shoppers are forced to buy less of a particular item, allowing Instacart to pare down the guaranteed wage and tip for every item a Shopper can’t secure for a customer.

On top of that, Telles added, Instacart is capitalizing upon laid off workers’ desperate need to pay the bills by ramping up their operations. On March 23, Instacart CEO Apoorva Mehta announced plans to hire 300,000 new Shoppers in response to anticipated customer demand over the next few months.

“They’re not vetting who’s a Shopper now,” Telles said. “It’s pretty much — if you’re alive, you can be a Shopper.”

Vanessa Bain, a Silicon Valley-based Shopper and founder of Gig Workers Collective, agreed.

“It’s going to be a disaster if [Instacart] is successful in hiring 300,000 people,” she said. “Veteran Shoppers are breaking down. The last time I shopped, I had an anxiety attack. And that’s just speaking about veteran Shoppers who are used to the general stress of the job. I can’t imagine what it’s like for new people just getting their footing. It’s really uncharted territory, shopping during the middle of a pandemic. People aren’t respecting social distancing in grocery stores.”

Bain added that because she lives with multiple elderly people who are at high risk of contracting coronavirus, she hasn’t shopped since March 13.

We’re out here risking our lives.

Sarah Clarke, another Gig Workers Collective organizer, said Instacart was capitalizing upon the divide between its corporate employees, who are guaranteed benefits such as health insurance and remote work, and that of Shoppers, whom many cities and local governments consider “essential workers” but aren’t treating as such.

“Instacart knows there are workers who can afford to stay at home and shelter in place, and then there are workers who absolutely need the money and who will work under any conditions because they have to,” Clarke said. “But you can’t really fault someone who’s working while they’re sick if they absolutely need to [to pay their bills].”

Above all else, however, all three organizers TalkPoverty spoke to said that the strike was being conducted out of concern for Shoppers’ customers, who bear the brunt of the risks they say Instacart is forcing them to shoulder by not guaranteeing basic sick leave and protective equipment.

“If [Shoppers] get the virus, most likely we will pass it on to customers,” Clarke said. “Lots of Shoppers are living in fear because they’re terrified they’ll pass it on to customers.”

“We’re the people customers interface with,” Bain said. “Most people who have ordered [from Instacart] are doing so to comply with the shelter in place, and to mitigate the risk of spreading disease. It’s literally now a matter of public health and safety.”

“It’s reckless,” Telles stated, speaking for himself, not the strike organizers. “We’re out here risking our lives. If I were a state official, I’d bar Instacart from my state.”

Following the strike announcement, Instacart almost immediately updated its policies. In an email to TalkPoverty, the company said it had extended its paid leave through May 6 to anyone who had been ordered by a state, local, or public health official to self-isolate or quarantine, but made no mention of Shoppers’ demands for personal protective equipment (PPE) or added hazard pay. Instacart added on Sunday that it would allow customers to set their own default tip payment, but workers said it’s not enough: The company is still refusing hazard pay and expanded sick pay.

But it’s too little too late, Bain said.

“We all have the potential of becoming vectors. Everyone’s a stakeholder. The stakes are very different from normal working conditions. Nobody should be against the idea of workers having safety measures to keep their customers alive and themselves safe.”

Editor’s note: This post has been updated to clarify Instacart’s compensation structure for batch orders. 

]]>
As Uber Investors Prepare to Make Billions, Drivers Strike Over Low Pay and Poor Conditions https://talkpoverty.org/2019/05/08/uber-ipo-driver-strike/ Wed, 08 May 2019 16:44:56 +0000 https://talkpoverty.org/?p=27602 On May Day, the New York Times’s Farhad Manjoo published an op-ed lambasting the approaching Uber initial public offering as a moral stain on Silicon Valley: “In the years since [its founding], Uber skirted laws and cut corners to trample over regulators and competitors. It accelerated the start-up industry’s misogynistic and reckless hustle culture. And it pushed a frightening new picture of labor — one in which everyone is a contractor, toiling without protection, our hours and our lives ruled by uncaring algorithms in the cloud.”

Uber executives’ plans to take the company public on Friday have only exacerbated the situation, so Uber drivers across the country have pledged to log out for 12 hours beginning at noon on Wednesday. Drivers and their supporters also plan to protest in front of the Uber headquarters in downtown San Francisco.

For months, drivers have pointed to the inequities between what they earn driving, which often calculates to below minimum-wage after taxes and expenses, and the billions that executives are projected to reap once the company goes public. Silicon Valley technology website TechCrunch reported in April that Uber is seeking up to $100 billion in valuation, one of the biggest such valuations in California history.

Among those cashing in on the I.P.O. are Uber’s former CEO and founder Travis Kalanick, who was forced out in 2017 for alleged internal conflicts and poor management. Kalanick could make as much as $9 billion, while venture capitalist Matt Cohler could pocket about $11 billion, and founder Garrett Camp may make $6 billion.

While driver protests have happened before, such as the strike that saw U.K.-based drivers withdraw their labor in October 2018, the Uber strike has expanded to stretch across the world in cities such as Los Angeles; Nairobi, Kenya; and Sydney, Australia, where drivers plan to strike for at least part of the day on Wednesday. City agencies such as Bay Area Rapid Transit are encouraging potential riders to utilize public transit as an alternative, and both the San Francisco Taxi Drivers Alliance and New York Taxi Driver Alliance are joining the protest out of a sense of solidarity with their rideshare counterparts.

Mostafa Maklad, an Uber driver in San Francisco and organizer with Gig Workers Rising, who is originally from Egypt, points out the little-known fact that the Saudi Arabian royal family could stand to gain the most from the Uber I.P.O. through direct investments and holdings. “Most Uber drivers in San Francisco are from Yemen,” says Maklad. Prince Mohammad bin Salman, as Saudi Arabia’s minister for defense, has spent billions on an air campaign targeting Yemeni rebel groups, which has led to civilian casualties. “All of that money will go towards the [Yemeni Civil War], which has killed hundreds of thousands.”

In recent months, rideshare drivers with Gig Workers Rising, a project of the grassroots labor organization Working Partnerships USA, have begun pushing back against what they allege are abuses of their “independent contractor” status. This spares the company from having to provide benefits or other labor law protections to drivers.

Maklad said, “Uber has always looked at drivers as just a number or an application on a paper.”

The drivers are also agitating for more transparency around payment models, an increased wage commensurate with the Bay Area’s high cost of living, benefits such as workers’ compensation and paid time off, and a role at the bargaining table in the workplace. Their organizing comes on the heels of a rare victory, when drivers in New York City won a minimum pay rate in December as part of the City Council’s attempt to regulate ridesharing companies under the Taxi and Limousine Commission and offset the gridlock that extra cars on the road cause.

“Wages have actually gone down in years. It’s expensive year-after-year. There’s no increase [for inflation] like other workers, no benefits,” Maklad said. After Uber made changes to its payment structure in October, drivers said their overall take-home pay actually decreased. Uber told a number of media outlets at the time, such as Business Insider, that it did this to keep earnings more consistent.

Other grievances Maklad pointed to include the lengths Uber executives seem to go to assuage their customers at the expense of their drivers. He highlighted one recent case in Los Angeles, in which a passenger stabbed a driver, citing the risks that rideshare drivers take when they pick up customers. Other cases include the oft-made complaint about Uber’s passenger-skewed ratings system, and that until recently drivers could only contact Uber through an email system.

While Maklad and other drivers allege that Uber shirks responsibility for passengers’ behavior, they also allege that Uber itself is less than forthcoming when it comes to dealing with its drivers, despite the critical role drivers play in ensuring the operation runs smoothly.  “We have the right to know much money we’re going to earn before we pick a passenger. We have the right to know who we’re picking up,” said Maklad. “It seems any passenger can commit a crime and get away with it because there’s no way to figure out who a passenger is [if anything goes wrong]. Uber wants to keep everything confidential.”

Uber drivers have been accused of discriminating against passengers, but that doesn’t undermine their very real fears about assault and harassment, highlighting the failures of a platform that benefits neither driver nor rider.

Uber has always looked at drivers as just a number.

In contrast, Maklad said, drivers’ accounts are automatically deactivated after they’ve been in three car accidents, regardless of whether the accidents are the driver’s fault or not. Maklad says the only course of action drivers can take is to email the company. He pointed to an incident in which one driver’s account was deactivated after his third accident — despite his not being at fault — after which drivers tried to deliver a petition to Uber headquarters in support of the driver to demonstrate their frustration with Uber’s policy.

Maklad said, “We were turned away at the door. Uber sent its security guard to tell us that they don’t accept physical deliveries, and that we had to email them.” The San Francisco Examiner reported that a guard tackled one driver/supporter.

“They refused to respond to his message, even though there were 8,000 signatures in support,” he said.

“Their business model is to find a way to avoid being responsible for employees,” said Maklad. “But we’ve never been treated like independent contractors.” A court ruling last year challenged the practice of labeling people who appear to be employees as independent contractors in California. Uber’s quite familiar with this issue: a current case concerning misclassification of drivers in Massachusetts and California is making its way through a San Francisco court, which has already seen Uber pay out $20 million in settlement fees. Another judge ruled that because the plaintiffs drove for Uber BLACK, the limousine side of Uber, and were able to have free rein over how they structured their time and when they took breaks, they couldn’t be considered employees and thus weren’t entitled to protections under the Fair Labor Standards Act, which doesn’t apply to independent contractors.

Wednesday’s strike looks to have a far-reaching impact beyond that of just gig workers. There is a sense that the circumstances surrounding the strike extend beyond transit, as the exorbitant amounts that executives stand to receive are reflective of the accelerating income inequality gap between workers and bosses. One U.K.-based organizer told the Philadelphia Inquirer, “Uber drivers were told they are unskilled, stuck in poverty, and will never stand up. Now, a global network for drivers are working together to fight back!”

]]>