Rideshare apps have become increasingly expensive for passengers — the death of the so-called “millennial subsidy” saw average Uber fares jump 45% between 2019 and 2022, with recent smaller increases attributed to gas, inflation, and the company’s attempts to become profitable.
But that doesn’t mean it’s gotten any better for drivers, who say it’s been harder to collect rides and earn money.
They’re taking matters into their hands
Some have started driving side hustles, but others are pursuing driver cooperatives, per Business Insider. While Uber and Lyft are beholden to shareholders and investors, co-ops are nonprofits owned and managed by workers.
- A San Diego driver cooperative is pursuing its own app.
- Drivers Cooperative Colorado already has 16k drivers who receive 80% of every fare.
A Colorado driver told BI that drivers still must pass background checks, but they must also attend an orientation and use dash cams, and have the option to buy a $200 stake in the co-op. Oh, and no surge pricing.
The ultimate goal is to provide drivers with a higher percentage of each fare, plus more transparency. For example, drivers for the larger platforms have complained about their accounts being deactivated for no clear reason.
Is this sustainable?
Maybe, but it’s not going so hot for New York’s Drivers Cooperative.
In 2022, its first full year, it earned $5.9m in revenue across ~162k trips, returned $5.2m in drivers’ wages, and recorded a loss of just $318k, per Next City.
Not bad, but a recent deep dive from Documented found many drivers who claimed they weren’t paid the promised $30/hour minimum, and some accused the co-op’s former leader of mismanaging funds. The service has pivoted from ride-sharing to paratransit and nonemergency medical transportation to stay afloat, and its future is unclear.
Colorado’s co-op is young, launched in October 2024, but worth keeping an eye on, alongside similar efforts in Minnesota and San Diego.
