Uber, Lyft drivers on strike, protesting wages and working conditions

Channel: Fox Business
Published: 05/08/2019 12:30 PM

WSJ wealth management reporter Veronica Dagher on the outlook for Uber and Lyft. Organizers for the strike will speak to the press at 9:30 a.m. ET: https://www.youtube.com/watch?v=eEdq2PE-SuY FOX Business Network (FBN) is a financial news channel delivering real-time information across all pla...

Is this ride-sharing protests uber and lyft drivers across the country and the uk are set to strike today in just under an hour? The protest is over wages and working conditions. This as uber prepares for an ipo on friday, both companies putting out statements an uber spokesperson, saying this weather it's more consistent, earning stronger insurance protections or fully funded four-year degrees fo ...
drivers or their families. We'Ll continue working to improve the experience for and with drivers. Lyft said this: we know that access to flexible extra income makes a big difference for millions of people and we're constantly working to improve how we can best serve our driver community left you putted its quarterly numbers yesterdayand, while they had 776 million dollars in revenue. The company lost two hundred and eleven and a half million dollars jeremie right now. The wall street journal's wealth management reporter the host of the wall street journal secrets of wealthy women, podcast veronica dagger great - to see if aronica here and i'm happy that i was a guest - yes you're, an amazing guest on your podcast. So thank you for that. Well, your reaction to what's going on this morning with uber and lyft first off. Well, you know these driver protests have been happening for a while latest one. This morning, drivers are feeling frustrated because they feel like they are helping executives and investors in these companiesget rich. While they are struggling, they are having you know, they don't have the benefits they want, they don't have the hours they want, they don't have the pay they want, and so there's this class tension going on. First of all, but i think, as an investor for in uber and and lyft, these are bigger issues for these companies right because you need the drivers, you, you have their key part of the business model, but uber and lyft already feel like they're paying these drivers Too much there's not an endless supply of drivers, so you can only cut their wages so much without them.

Pushing back and saying i quit, there's tons of retention issuesin these service businesses. What are the what's the turnover among do. We know it's very high compared to here 700 percent work yeah. I don't have the exact figure at the moment, but there is it's compared to say: the restaurant service business uber drivers lyft drivers very high hard to keep these employees. People say you know this sounds like a great side, gig or even a full-time gig, and then they realize they're not getting paid what they expected to get paid, and so these issues aren't going to go away for these companies. They haven't really figured out a way. How to keep these drivers happy? Well, do you do it by paying him or youknow going back in history henry ford, the reason he doubled wages of this factory was: he had huge turnover when he doubled wages and cut the working hours by 1/3. Suddenly, that became something very desirable turnover. A problem disappeared. Is there something where they just suck it in and say, pay more and stop this turnover, it's possible right in this economy. They might need to do that, but ubers long-term game now and what they would really love to do is to go to these self-driving cars. Take the people out of the equation, because i bility.

I will point out that lyft announced an extended partnership yesterday with alphabet self-driving car unit from alphabet wham-o toallow people to hail, robot taxis in the phoenix area, so they're very focused on that and a way to get around these pay protests. I could only do that in phoenix, so that's where we moe is right all right for a huge extension. That'S a long ways off it's a long. It'S the long game. Uber ceo has said that don't expect us to be profitable any time soon. So if you're an investor, you really need to consider that in this company, but in terms of getting around some of these regulatory issues, which are really going to weigh on the company already weighing on the company going driverless, maybe their best play to profitability. I meanthat's probably a long time down the road is when you talk about ours, though uber drivers get to set their own hours, that's one of the the appeals of being an uber driver. They don't have to get permission from their boss to say. I'M gon na take off from my kids school exactly that is a huge benefit and that's why some people do it. They do it as a side business or they can set their own schedule, have their own business, and some of those drivers have done a really smart and good job with that, for example, drivers who've been at it for a long time, are actually getting shares in This ipo getting a pieceof it, but you know what that's a very small amount of drivers who actually qualify for that we'll be watching. This could be an interesting week to go public for uber after this huge sell-off that we've seen in stock prices, we'll see what happens on friday, whether or not they pulled eal for now, because the markets are certainly not cooperating veronica good to see you thanks, congrats On that, fantastic podcast that you have secrets of wealthy women, veronica dagger from the wall street journal,.

Watch Next