[Nfbc-info] Uber abandons trial, settles massive driver court case

[David Andrews]

Brian:

I read an article, a few months ago, that said in some cities it is 
pretty common to tip Uber drivers in cash.  Some people do it to get 
a 5 star rating from the driver. Yes, we rate them, and they rate us.

And, I gather it is quite common to drive for multiple companies.

Dave

At 10:16 PM 4/22/2016, you wrote:
>         hello.  I found the following article in my local paper and 
> thought it
>worth posting here.  The most interesting thing to note from the customer
>perspective, as far as I can tell, is that drivers will now be expecting
>cash tips in addition to what you pay with your credit card.  Of course,
>they say tips aren't required, but I'm guessing they'll be highly expected,
>much as tips at restaurants aren't technically required either.
>         From my perspective, Uber is becoming ever more like a cab every day.
>In fact, I was talking with a cab driver earlier this week and he told me
>he drives for the cab company, Uber and Lyft.  He says it's the only way he
>can make driving folks around worth the effort.  I'll note that this
>article also acknowledges that some drivers work for both Lyft and Uber.
>-Brian
>
>
>Uber abandons trial, settles massive driver court case
>
>    By Marisa Kendall, Bay Area News Group
>
>    Posted: 04/22/16, 4:47 PM PDT | Updated: 2 hrs ago
>
>    SAN FRANCISCO >> Dodging a legal threat to its future, Uber has agreed
>    to pay up to $100 million to a group of its drivers to avoid having to
>    treat them as regular employees.
>
>    Under terms of the deal announced Thursday evening, Uber would not have
>    to reclassify its independent contractor drivers or offer them employee
>    benefits such as minimum wage, overtime and reimbursement for driving
>    expenses.
>
>    The case, scheduled for trial in June, has captivated the Bay Area
>    because a ruling against Uber -- the world's most valuable startup --
>    had the potential to upend the exploding on-demand industry. Many other
>    companies in the space follow Uber's independent contractor business
>    model, which saves them money and -- they insist -- offers their
>    workers flexibility.
>
>    Boston-based attorney Shannon Liss-Riordan, who represents the 385,000
>    drivers in the dispute, said the settlement allows drivers to avoid the
>    risk that a jury in San Francisco -- a city where Uber use is
>    widespread -- would side with the ride-booking company. The settlement
>    covers drivers in both California and Massachusetts, where
>    Liss-Riordan's practice is based.
>
>    "We realize that some will be disappointed not to see this case go to
>    trial in June," Liss-Riordan wrote in an email. "We were looking
>    forward to this trial. But we believe the settlement we have been able
>    to negotiate for Uber drivers throughout California and Massachusetts
>    provides significant benefits -- both monetary and non-monetary -- that
>    will improve the work lives of the drivers and justifies this
>    compromise result."
>
>    If a federal judge approves the settlement, Uber will pay $84 million
>    right away. The remaining $16 million is contingent on Uber's growth.
>    If Uber's valuation grows by one and a half times in the first year
>    after it goes public, the company will have to fork over the extra
>    cash. Uber, valued at more than $60 billion, has not announced any
>    plans for an IPO.
>
>    The money will be allotted to drivers based on how many miles they have
>    driven for Uber, with drivers with more than 25,000 miles possibly
>    receiving an average of $8,000, according to Liss-Riordan.
>
>    In a blog post Thursday evening, Uber CEO and co-founder Travis
>    Kalanick reiterated the importance of classifying Uber drivers as
>    independent contractors.
>
>    "Drivers value their independence -- the freedom to push a button
>    rather than punch a clock, to use Uber and Lyft simultaneously, to
>    drive most of the week or for just a few hours," he wrote. "That's why
>    we are so pleased that this settlement recognizes that drivers should
>    remain as independent contractors, not employees."
>
>    The settlement may make it easier for drivers to earn tips, which was a
>    main issue in the original lawsuit. Drivers claimed Uber told
>    passengers that tips were included in the fare, but the company did not
>    actually give tips to the drivers. As part of the agreement, Uber will
>    let drivers post signs in their cars stating, "Tips are not included,
>    they are not required, but they would be appreciated."
>
>    Uber also would no longer be able to kick drivers off the platform at
>    will. Instead, drivers would be removed only for sufficient cause (not
>    including accepting a low number of rides) and would most often receive
>    warnings and the opportunity to correct problems. Drivers wishing to
>    fight their removal could bring their concerns to an appeals panel made
>    up of other Uber drivers.
>
>    And Uber drivers would be able to form a quasi union, dubbed a "driver
>    association," which will bring any grievances to management.
>
>    In January, Lyft agreed to pay $12.25 million to settle similar claims,
>    but the court rejected the settlement as too low earlier this month.
>
>    Liss-Riordan called the Uber deal one of the largest ever achieved on
>    behalf of workers claiming misclassification as independent
>    contractors, and wrote it stands as a warning for other companies who
>    improperly deny their workers employee benefits.
>
>    "As a result of this litigation, many companies have chosen to go the
>    other way and not fight this battle," she wrote, "and instead to
>    classify their workers as employees with all the protections that
>    accompany that classification."
>

         David Andrews and long white cane Harry.
E-Mail:  dandrews at visi.com or david.andrews at nfbnet.org