Uber is raising its prices for customers in California up to $2 per ride.
The company announced that it would be adding surcharges to cover worker’s benefits, now required by the state’s new Proposition 22. This is unreal!
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Financial Times first reported on Uber, along with food delivery service Door Dash, adding the surcharges this month.
This means that the billion-dollar companies who rely on gig workers will pass the cost of benefits such as healthcare and accident insurance along to the customer, rather than footing the bill themselves.
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In November, the gig economy companies won the right to continue classifying their drivers as "independent contractors," rather than employees in the state.
While gig jobs boom amid the Covid-19 pandemic and American workers struggle to make ends meet, Uber will make California residents foot the bill--up to $1.50 for rides, and $2 for food delivery--for these basic worker benefits.
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In May, the state, along with the cities of Los Angeles, San Diego and San Francisco, had sued Uber and Lyft for allegedly violating labor laws.
DoorDash, which is worth $50 billion after its IPO, didn't say how much the increased service fees would be. Lyft and Instacart also declined to confirm any new fees for the FT story.
