Uber drivers living in cars

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For The Curious

HOMELESS IN LA
Some Uber drivers make so little, they have to live in their cars
These drivers are some of the 4,000 people living in their cars in LA.
JUL 10, 2017 By Carla Green



There’s a parking lot about two miles from LAX where rideshare drivers wait for pings from arriving passengers. The regulars call it the pig pen, or Jenny lot – it’s just off Jenny Avenue. Just after 1 a.m. on a recent visit, the 100 or so spots at the lot were almost all occupied. Drivers leaned against their cars, smoking, talking, and waiting for ride requests.

Gordon Swan, who drives a weathered black Grand Prix, was reluctant to talk about what it’s like to drive for Uber, a company that’s had a storied and often-conflictual relationship with its workforce. Especially because he’s part of a largely-invisible class of people who live full-time in the cars they drive for the rideshare company. He said he’s trying to stay optimistic, and stave off embarrassment about living in his car. “But it’s not like I’d go around advertising it.”

GORDON SWAN



Has been living in his car for: about a month

Monthly car payment: $0

Monthly storage unit, insurance, and phone costs: about $300

Monthly hours driven: about 100



BRANDON



Has been living in his car for: about two months

Monthly car payment: just over $600/month

Monthly insurance, gas, and phone costs: just over $1000/month

Monthly earnings (in a good month): $2800/month

Monthly hours driven: about 250

BRIAN FRITZ



Has been driving for Uber and Lyft for: about eight months

Monthly car rental: about $800/month

Monthly gas, storage unit, food, coffee: about $1600

Monthly hours driven: about 200



According to this year’s homeless count, more than 4,000 people live in cars and vans in Los Angeles county – about 7 percent of the 58,000 people who are homeless in the county overall.
Later that night, a woman emerged from her Prius. She asked to be identified only by her middle name, Renee. She said the whole experience of driving for Uber had been “demoralizing.”

Renee said that when she first started driving for the company, the money was good. There were fewer drivers, and less competition. This was before Uber and Lyft got into a price war, slashing fares and drivers’ take-home pay.

When it got harder to make money driving, Renee found herself struggling to pay for the car she was renting through Uber. If she didn’t drive enough to afford the weekly rental, she’d end up owing Uber money instead of pulling a salary.

In 2015, she moved into her car to save money and sent her three children to live with their grandmother. But she kept falling further behind on the rental payments, until one night, the car was repossessed. She was dropping her daughter off at the babysitter’s. “And the repo man was outside and repossessed the car,” she said. “And I was embarrassingly stuck at the babysitter’s.”

She, too, moved into her mother’s in Lancaster. But continued to drive for Uber and Lyft, and said she still feels the looming threat of homelessness.

“You drive past Skid Row when you’re on your way to a call sometimes, and you think, oh god, I don’t wanna end up there,” she said. “So you drive and drive and drive.”

Renee’s not alone. Brandon, a 34-year-old Uber and Lyft driver, moved into his own Prius about two months ago. Like, Renee, he said the fear of living out on the street is never far from his mind. “If life ultimately wants me to live on Skid Row – I’m pretty close – and I have to give up my car, then that’s what I have to do.”

Brandon asked that we use only his first name because no one in his life really knows that he’s homeless.

The stigma associated with homelessness is more powerful than some people realize, said Eric Ares, an organizer with the Los Angeles Community Action Network, or LACAN, an advocacy group based in Skid Row. It can stop people from getting government assistance they’d be entitled to, like food stamps or housing subsidies.

“You have people who’re afraid or ashamed to reach out for assistance to help them get back on their feet,” he said. “And I think you’d be surprised about the prevalence of folks who are currently working. Full-time, part-time. In other cities in the country, they might be able to rent a one-bedroom. Not in Los Angeles.”

Brandon said he started driving full-time for Uber and Lyft because it paid pretty well and the flexibility was appealing. He was trying to go back to school for psychology. But then, the pay dropped precipitously.

He said he can drive 12-hour days, seven days a week, and barely make enough to cover his expenses and debts.

“I get [passengers] who you can tell have a lot of money based on where I pick them up and where they’re going and the conversation that they’re having,” he said. “And I just think to myself – I’m literally sleeping where they sit. This is my life.”

Uber declined to answer questions about drivers living in their cars, instead providing a two-sentence statement from a spokesperson, saying it was up to drivers to decide “when, where and how long to drive.” And that, “we’re focused on making sure that driving with Uber is a rewarding experience, however you choose to work.”

Joel Kotkin, a Chapman University presidential fellow who writes about economics and urban studies, said there’s a term for workers like these drivers: the precariat. They’re members of a class of precarious workers, teetering at the edge of financial destitution. And as the workforce of companies like Uber and Lyft shifts from part- to full-time workers, Kotkin said, the precariat is only going to grow.

“I don’t know that [driving for Uber] was ever seen as a real career for people,” Kotkin said. “And that’s unfortunately what we’re seeing, which is that a lot of people, particularly younger people, are stuck in these jobs that … particularly in expensive, high-rent areas like LA, [couldn’t] even support paying the rent.”

But the answer to the problem of the precariat likely won’t come from Silicon Valley, Kotkin said.

“Silicon Valley is particularly known for these kinds of labor abuses on many, many levels,” he said. “It likes to portray itself as hip, cool, and progressive, and yet, I think you’d be better off working for an oil company.”

So, can anyone more familiar with Uber and Lyft explain this to me?

[Zaune]

When it got harder to make money driving, Renee found herself struggling to pay for the car she was renting through Uber. If she didn’t drive enough to afford the weekly rental, she’d end up owing Uber money instead of pulling a salary.

In 2015, she moved into her car to save money and sent her three children to live with their grandmother. But she kept falling further behind on the rental payments, until one night, the car was repossessed. She was dropping her daughter off at the babysitter’s. “And the repo man was outside and repossessed the car,” she said. “And I was embarrassingly stuck at the babysitter’s.”

Christ. Might as well just pay 'em in company scrip and be done with it.

[Ace Pace]

So, can anyone more familiar with Uber and Lyft explain this to me?

Sure, easy peasy. A completely hour based job where you earn based on your job performance. I'm just surprised it's newsworthy, since it's similar to "Walmart employees require food stamps" articles that are so common they stopped being news.

[NecronLord]

Hey Zaune, I remember you talking last year about how taxis were uncompetative, on the topic of uber.

Competition! Behold it.

[Zaune]

I still think that, as it happens; from what I've read on the subject, most cities issue far too few medallions, charge far too much for them and only offer them in such large blocs that there's no room for smaller firms to get a foot in the door. I seem to recall that Raw Shark once mentioned there were exactly two yellow cab companies in the whole city of Denver. I've got at least four separate taxi firms to choose from and I live in sleepy little town with a population of less than thirty thousand people and not much nightlife to speak of. Something's not quite right there, don't you think?

But that doesn't mean I'm okay with worker exploitation, predatory pricing and disregard for public safety, all of which Uber have embraced with enthusiasm since.

[Raw Shark]

I still think that, as it happens; from what I've read on the subject, most cities issue far too few medallions

We have the opposite problem here, in my humble opinion. The government just approved two new companies in as many years, which in light of the rideshare competition, prompted many taxi drivers to exclaim something like, "Are you out of your fucking minds! I'm already eating beans out of a can here!"

and only offer them in such large blocs that there's no room for smaller firms to get a foot in the door. I seem to recall that Raw Shark once mentioned there were exactly two yellow cab companies in the whole city of Denver. I've got at least four separate taxi firms to choose from and I live in sleepy little town with a population of less than thirty thousand people and not much nightlife to speak of. Something's not quite right there, don't you think?

I don't recall saying that. When I started waaaaay back in the day (Cthulhu, I'm old), there were three real cab companies:

Metro Taxi: The largest, with about 500 cars.

Yellow Cab: The oldest, established when Jesus was in diapers. Also has the best corporate backing, since it's owned by a colossal international firm based out of France and operates basically everywhere. About 350 cars.

Freedom Cab: Charges its drivers the least, but provides the bare minimum in support. Has no rental fleet; all drivers are owner-operators. About 50 cars, which may or may not qualify as a smaller firm in your mind.

Flash forward to the present, and we now have five real cab companies:

Metro/Yellow: The unholy Frankensteinian creature that emerged from its cavern after Metro ate the local branch of Yellow whole. They called it a merger, but all of Yellow's management and most of their mechanics and office staff got sacked, and they're using Metro's facilities. Not sure how many cars; some of the Yellow fleet probably got cannibalized for parts. I'd guesstimate about 750.

Freedom Cab: No changes.

Union Taxi: Unremarkable except that they have some bizarre rules, and because the name is a lie. They're no more unionized than we are. They have some loyal blue collar customers who insist that they are organized labor sticking it to The Man, however. About 200 cars.

Mile High Cab: Unremarkable except that they charge the passengers the most, and because it only got approved to operate in the counties west of here due to a glut in the market at the time. A bunch of its guys work downtown the same as I do, breaking that rule flagrantly. No idea how many cars, because some of their guys probably do actually operate on the front range.

Green Taxi: The newest. All of their vehicles are hybrids. Too new to estimate the fleet size, but probably not much yet.

[Raw Shark]

Ghetto Edit: I had a really good laugh at the article, by the way. I needed that, thanks FaxModem1.

[Gandalf]

Ghetto Edit: I had a really good laugh at the article, by the way. I needed that, thanks FaxModem1.

lol exploited people?

[Raw Shark]

lol exploited people?

lol criminals with no regard for public safety getting what they deserve?

[Gandalf]

Are Uber and similar things illegal in CA?

[Flagg]

Are Uber and similar things illegal in CA?

They should be. It's my understanding that internet based unlicensed taxi companies don't do any type of background checks. Unless that's changed with the cases of drivers raping and/or murdering riders. Because that keeps happening.

[Gandalf]

Are Uber and similar things illegal in CA?

They should be. It's my understanding that internet based unlicensed taxi companies don't do any type of background checks. Unless that's changed with the cases of drivers raping and/or murdering riders. Because that keeps happening.

Apparently in California it's already sort of a rule.

The new law, which goes into effect January 1, 2017, also forbids Uber and Lyft from allowing drivers on its platform that are registered sex offenders, have prior violent misdemeanours, or cited for driving under the influence of alcohol violations in the past seven years.

[Flagg]

Are Uber and similar things illegal in CA?

They should be. It's my understanding that internet based unlicensed taxi companies don't do any type of background checks. Unless that's changed with the cases of drivers raping and/or murdering riders. Because that keeps happening.

Apparently in California it's already sort of a rule.

The new law, which goes into effect January 1, 2017, also forbids Uber and Lyft from allowing drivers on its platform that are registered sex offenders, have prior violent misdemeanours, or cited for driving under the influence of alcohol violations in the past seven years.

Well that's good. But really, they should have to jump through every hoop a "regular" taxi driver has to. I don't get why "internet based" seemed to mean "exempt from the laws regulating every other taxi service". IMO, they should have to have an FBI background check like I did to get a Class D (basic unarmed rent-a-pig) security license and so should all taxi services if they don't already.

[GuppyShark]

The 'hoops' need to be about public safety and not government-mandated cartels, or the public will ignore them completely.

[Flagg]

The 'hoops' need to be about public safety and not government-mandated cartels, or the public will ignore them completely.

Did you just read the first sentence I wrote and respond to it while ignoring the part about how it's about safety and it being internet based doesn't mean it should be exempt? I'm not making any argument based on how the government deals with the taxi industry, I'm making an argument based on what you should be required to do to be a driver.

[Zaune]

We have the opposite problem here, in my humble opinion. The government just approved two new companies in as many years, which in light of the rideshare competition, prompted many taxi drivers to exclaim something like, "Are you out of your fucking minds! I'm already eating beans out of a can here!"

Hmmm. Do you have to apply for your livery cab permit through a company, or does City Hall give you a piece of paper that you then take to the company? So far as I know it's the latter around here, which means competition is good for drivers too; if one company takes too big a cut or overcharges for equipment rentals, you can quit and be working for a competitor within 48 hours.

I don't recall saying that. When I started waaaaay back in the day (Cthulhu, I'm old), there were three real cab companies:

[...]

Freedom Cab: Charges its drivers the least, but provides the bare minimum in support. Has no rental fleet; all drivers are owner-operators. About 50 cars, which may or may not qualify as a smaller firm in your mind.

Actually, for these parts (which as previously noted are pretty far out in the boonies) that's likely about average, at an educated guess based on the fact that whenever I've caught a cab ride as a walk-in the local minicab companies appear to possess no more than three dispatchers each. Owner-operated vehicles are the norm here as well, at least for the advance-booking-only set.

[aerius]

So, can anyone more familiar with Uber and Lyft explain this to me?

There's no such thing as a free lunch. The "sharing economy" doesn't work unless you're a slumlord.
https://priceonomics.com/how-much-are-p ... e-sharing/

[Broomstick]

What is comes down to is that "sharing economy" jobs are great for a few extra bucks a month, as a sideline, but we've got people trying to make a living doing these jobs.

I'm planning to start an Etsy shop myself, but I'm not expecting it to be my sole income, basically a way for my hobby to pay for itself. And there's nothing wrong with that. However, everyone I know who does well on Etsy ALSO promotes their stuff on Facebook, other websites, etc. They not depending on JUST Etsy.

My workplace just introduced "Shipt", which is basically Uber/Lyft for groceries. A customer orders groceries via an app, then an independent contractor shopper goes and gets them and delivers them. I expect this will work about as well as any other sharing economy job - some people will do very well, a lot will get some money, some will try it briefly then go elsewhere. And I fully expect to see some people trying to make a living at it and not succeeding.

I am thinking of suggesting it to a couple of people I know whose jobs are a bit seasonal and who therefore have a couple months a year when they're laid off/not working and having something like this might well be a good thing. But a full time year round living? I just don't think the math adds up.

[Flagg]

Why is this called a "sharing economy"? Aside from things like Etsy where you sell your own products and it being online, how is this different from the 1950's/'60's "Avon Lady" or the later 20th century Tupperware salespeople?

[Broomstick]

It's a re-branding of an old idea, that's all. "Sharing" sounds all warm and fuzzy, as opposed to "Exploiting independent contractors economy"

[Flagg]

It's a re-branding of an old idea, that's all. "Sharing" sounds all warm and fuzzy, as opposed to "Exploiting independent contractors economy"

Ahh, ok. Kind of what I figured even though it sounds like COMMUNISM.

[Gandalf]

Well that's good. But really, they should have to jump through every hoop a "regular" taxi driver has to. I don't get why "internet based" seemed to mean "exempt from the laws regulating every other taxi service". IMO, they should have to have an FBI background check like I did to get a Class D (basic unarmed rent-a-pig) security license and so should all taxi services if they don't already.

I agree, everyone driving another person for money should have some sort of standardised qualification. But I also think this should be a state run and taxpayer subsidised industry like buses and trains, so my opinion may not count for much.

That said, in these economic times, I'm hardly going to begrudge someone for partaking in this shitty gig economy in an attempt to not starve, which is why I was curious about RS's statement.

[Raw Shark]

Speaking as a formal career criminal, I can't harsh too much on talking monkeys like me picking whatever bananas they can, but on principle, if I pay this much into this industry, those clowns should too, and if they can't, they should find another job.

[K. A. Pital]

Ah the pleasures of time.

I still remember when MLM salespeople referred to their schemes also as a "sharing economy". Seems ideas never go too far...

Don't take me for a harsh person, but when you believe in capitalism, you have to take and accept the fruits your god brings you.

[Flagg]

Ah the pleasures of time.

I still remember when MLM salespeople referred to their schemes also as a "sharing economy". Seems ideas never go too far...

Don't take me for a harsh person, but when you believe in capitalism, you have to take and accept the fruits your god brings you.

MLM? Is that like the Avon and Tupperware pyramid schemes self employment franchises?