Gridwise blog

You’ve undoubtedly heard about the brouhaha in California since the state legislature passed Assembly Bill 5, better known as AB5. It’s the legislation that would require Uber, Lyft, DoorDash, Instacart, and many other companies and operations, to make their independent contractors employees. 

If you’re not up to speed with all that, you can catch up by reading this blog post we published a few weeks ago.

After the companies refused to comply with AB5, the state sued, and the companies lost. They filed an appeal and continue to operate, at least for now, under the terms of that appeal.

The decision should come through around the time of Election Day on November 3. That’s when citizens in California will decide whether Proposition 22, the companies’ effort to exempt drivers from the terms of AB5, will get an up or down vote.

If you don’t live in California, please understand that this can still affect you. What happens in Cali on Election Day and afterwards will have a reverberating effect—and not the kind that comes wailing out of a California surf guitar. This kind of tumult, and the existential threat to the gig economy, happens to be in California now; but it could be coming to your state before too long.

If Proposition 22 gets enough “yes” votes, the companies will not have to classify their drivers as employees. There are a few different perspectives on this issue, and our goal with this post is to present them to you, examine what’s at stake, and discuss what might happen if it does or doesn’t pass. Here’s what we’ll cover:

• What is Proposition 22?
• What companies are doing to back Proposition 22
• Impact on drivers
• Impact on companies
• Impact on customers
• If Proposition 22 gets voted down ...

What is Proposition 22?

Proposition 22, officially the App-Based Drivers as Contractors and Labor Policies Initiative, is a measure developed by the companies (primarily Uber and Lyft), that’s intended to exempt rideshare and delivery drivers from AB5. 

Because Proposition 22 would classify app-based drivers as independent contractors and not employees, California employment-related labor laws would not cover them. If the legislation passes, it would lead to the enactment of certain labor and wage policies specific to app-based drivers and companies, including:

• A payment schedule that’s based on the difference between a worker's net earnings (excluding tips) and a net earnings floor (120 percent of minimum wage applied to a driver's engaged time, meaning the time between accepting a service request and completing it, plus 30 cents), adjusted for inflation after 2021, per engaged mile;
• Limiting app-based drivers from working more than 12 hours during a 24-hour period, unless the driver has been logged off for an uninterrupted six hours;
• For drivers who average at least 25 hours per week of engaged time during a calendar quarter, companies would be required to provide healthcare subsidies equal to 82 percent of the average Covered California (CC) monthly premium;
• For drivers who average between 15 and 25 hours per week of engaged time during a calendar quarter, companies would be required to provide healthcare subsidies equal to 41 percent of the average CC monthly premium;

Also under Prop 22, companies would be required to provide or make available:

• Occupational accident insurance to cover at least $1 million in medical expenses and lost income resulting from injuries suffered while a driver was online, meaning using the app and able to receive service requests but not engaged in personal activities;
• Occupational accident insurance to provide disability payments of 66 percent of a driver's average weekly earnings during the previous four weeks before the injuries were suffered (while the driver was online but not engaged in personal activities) for upwards of 104 weeks, or approximately two years;
• Accidental death insurance for the benefit of a driver's spouse, children, or other dependents when the driver dies while using the app.

In addition, says the political encyclopedia, Ballotpedia, Proposition 22 would require the companies to “develop anti-discrimination and sexual harassment policies; develop training programs for drivers related to driving, traffic, accident avoidance, and recognizing and reporting sexual assault and misconduct; have zero-tolerance policies for driving under the influence of drugs or alcohol; and require criminal background checks for drivers. The ballot initiative would criminalize false impersonation of an app-based driver as a misdemeanor.”

What companies are doing to back Proposition 22

As you might imagine, the companies are 100 percent behind this ballot proposition because, after all, it was their idea. They view it as a compromise between hiring independent contractors with absolutely no benefits, and employees with benefits but far less flexibility. 

In the measure (as previously explained) companies state they will pay drivers above minimum wage, plus an additional 30 cents per mile. They’ll also make provisions for health insurance for drivers who work more than 15 hours per week, and will pay for injuries suffered on the job.

Company efforts to persuade people to vote in favor of Prop 22 include emails to customers urging a “yes” vote, as well as prolific television and online ads. At the heart of the companies’ appeal to customers is their claim that they may not be able to operate in California anymore if they are forced to classify drivers as employees.

The most highly circulated ad for “Yes on 22” states that if and when drivers are classified as employees, many would lose their jobs. See the ad for yourself below.

The ad, funded by part of the $100 million raised by Uber, Lyft, DoorDash, and Instacart, discusses the rideshare and delivery business as a source of income for many people who really need the income they get from their driving gigs.

In the ad, the companies allude to the complications brought on by COVID-19. The video montage of drivers’ cars with masks dangling from the rearview mirror are voiced over with a somber reminder of how high the unemployment rate already is, and how much worse it would be without Proposition 22.

And there’s more persuasive rhetoric where that came from. With just two months until election day, the companies will pull out all the stops. They don’t hesitate to use scare tactics to make customers imagine what their lives would be like if Uber, Lyft, DoorDash, Instacart, and other rideshare and delivery companies would have to stop operating in California.

The recent threat by Uber and Lyft to do exactly that, when they were denied a stay on a decision unfavorable to their case, resulted in a higher court taking their appeal. The companies have a lot of money to lose if they are forced to classify drivers as employees; it would mean a total overhaul of their entire business models. If Proposition 22 gets voted down, they might believe they have no choice but to end their California operations.

Impact on drivers

Many drivers and groups have been fighting to be classified as employees for a long time. This blog post from several months ago tells you about a few of them. They believe drivers should have a guaranteed minimum wage and benefits, which would certainly be good for drivers.

Yet not all drivers are interested in being classified as employees.

Let’s take a look at some of the benefits for drivers if Proposition 22 passes:

• Companies providing additional benefits (some insurance, some additional compensation);
• Freedom to choose your work hours;
• Background checks remaining the way they are now;
• Freedom to work elsewhere and for other apps;
• Fewer limits on the number of drivers allowed to work;
• Flexibility to tend to family and social responsibilities.

If Proposition 22 doesn’t pass, and drivers must be classified as employees, they will receive a set minimum wage and benefits. But these criteria will also take effect:

• More restrictions on hours;
• Limits on the number of drivers permitted to work;
• Stricter background checks;
• Fixed work hours;
• Inability to work for a competing company;
• Possibility the companies will no longer be in operation.

Impact on Companies

It would not be an exaggeration to say that if Proposition 22 passes, the companies will most likely be ecstatic. In truth, they would probably be even happier if they didn’t have to deal with this issue at all, and simply continue operating as they have thus far. They might have also avoided paying $100 million to get Proposition 22 on the ballot and hiring companies to promote their case. 

Here are some specific aspects of the bill that they will likely consider beneficial:

• Exemption from many of AB5’s restrictions;
• Ability to continue operating without the immense financial burdens of AB5;
• Capacity to attract drivers to their platform with low compensation;
• Flexibility of having as many drivers as needed;
• Market-driven pricing can largely stay in place.

If Proposition 22 doesn’t pass, the companies will be responsible for paying a very large bill. The Center for Labor Research and Education at UC Berkeley estimates that, if Uber and Lyft had paid into the state unemployment insurance fund from 2014 to 2019, they would have owed the state $413 million. That gives us some idea, should the companies be mandated to do so, of how much they would have to pay into the unemployment insurance fund.

Also if Prop 22 doesn’t pass, the companies will need to make huge investments to restructure the way they pay drivers and run their businesses. All this will come on top of the fact that so far, they have yet to make a profit. 

Some specific problems they might face if Proposition 22 doesn’t pass include:

• Large payments for minimum wages and insurance;
• Software development costs to alter the apps;
• Expense of human resources compliance, including background checks;
• Possible liability issues;
• Disruption while companies make changes in operations;
• Risk of being fined by the government for noncompliance.

Impact on Customers

Lest anyone wonder why we should care what customers might experience, well, without customers there would be no reason for drivers or the companies to be in business. Here are some ways that customers could be affected if Proposition 22 passes:

• Rideshare and delivery services continue uninterrupted;
• Prices remain almost the same, with some slight increases;
• Continued choice and convenience of multiple companies;
• Satisfaction that companies are making some concessions to drivers.

How will customers be affected if Proposition 22 does not pass? 

• Rideshare and delivery services may be disrupted or discontinued;
• Need to find alternate means of transportation and delivery services;
• Prices likely to rise sharply, to help offset company expenses;
• Satisfaction that companies have complied with the law and made and drivers employees;
• Greater confidence in drivers who have been more thoroughly background checked;
• Companies will be liable for driver behavior and error.

If Proposition 22 gets voted down...

Of course, there’s no crystal ball to tell us whether Proposition 22 will pass or not, but there are polls. One of these, conducted on August 9 by the strategic consulting firm Redfield and Wilton, shows that support for the legislation is high. The poll found that 41 percent of voters plan to vote “yes,” and 26 percent plan to vote “no.” Yet there’s also a strong indication that the fate of Prop 22 is still very much unknown: the remaining participants in the poll who said they still don’t know how they’ll vote. 

That brings us to what might happen if Proposition 22 gets voted down. It would mean that AB5, which went into effect last January, would still apply to rideshare and delivery companies. It would mean that the drivers and groups pushing to get drivers classified as employees have won the war … and the companies will have lost.

So what about after that? Would the companies follow through on their threat to pull out of California? These companies, in many ways, are California, since they were birthed in Silicon Valley, and every cutting edge that’s emerged from the industry has been tested first in California. 

Still, would they really pull out of the state? Financially, it might make sense, and that’s sad for a lot of reasons. Most important, many drivers would no longer be able to earn a living through the gig economy. Also, it would be very hard for customers and the restaurants, stores, bars, and other establishments that depend on rideshare and delivery drivers to fill the huge gap that would be left in the heart of California’s economy, should the gig companies leave.

Then … this would probably not be the last state where companies are forced to make gig drivers into employees. This pattern would be likely to repeat itself in just about every other state, and maybe other countries too.

Yes or no? How would you vote?

Now that you know more about Proposition 22, and have had a chance to look at it from different angles, how would you vote? 

As for earnings, what are you making now? What do you need to make? Do you make more if you work for multiple companies, or do you profit more if you stay with just one app?

If you want to find out the answer to all these questions, download Gridwise. It can be invaluable in helping you make decisions like whether you want a fixed minimum wage, or want to keep the freedom of working over multiple platforms. The Gridwise app lets you track your earnings, and it presents you with pictorial evidence of your performance. You can also track your mileage for tax deduction purposes.

Plus, you’ll get airport and event information, and all kinds of cool stuff on our Perks Tab. Get discounts and deals for drivers, easy access to our informative blog, and links to the latest from the Gridwise YouTube channel. 

And be sure to join us on Facebook so you can connect with the rest of the community, and get in on our great gas card giveaways.

No matter how Proposition 22 and the future of the gig economy works out, count on Gridwise to be here with you to always make your rideshare and delivery driving experience as convenient and profitable as possible.

As the gig economy continues to evolve, we’re seeing a pattern emerge: Companies are starting to diversify. In the same way rideshare drivers might add delivery apps as an option to make more money, some companies are moving into new areas they haven’t tried before.

DoorDash is the latest company to do this. Founded as a prepared food delivery service, the company is starting to move into the convenience and grocery store domains. This could be a great thing for drivers if it offers opportunities for deliveries that bring us additional income.

So what are the pros and cons of the latest move by DoorDash? In this post we’ll explore that, and ...

• DoorDash’s motivations to get into delivery
• FAQs about being a DoorDash grocery delivery driver
• How to make this work for you

DoorDash’s motivations to get into delivery

On August 20, DoorDash announced that it would start offering grocery delivery to customers.

The company had recently expanded into working with convenience stores to deliver snacks and odd essentials, but with this move, DoorDash placed itself up against some major competitors, including Instacart and Amazon Fresh.

While this might seem to be a bold move, it really isn’t. DoorDash was already delivering groceries for some stores. Maybe the company figured it was time to get a take of the goods people order, along with being paid for delivering those orders to customers’ doors.

The only part that sounds far-fetched is the competition with Amazon Fresh and Instacart. Since these companies have been in the business a long time—Amazon Fresh since 2007, and Instacart since 2012—they have a head start on DoorDash. Still, there are many reasons why DoorDash views this as a logical next step.

Grocery delivery, for starters, is a natural extension of the company’s existing business. On August 20, when the new service was announced, DoorDash head of new verticals Fuad Hannon said the company will add features that others don’t offer. DoorDash, for instance, will deliver groceries within one hour of the order being placed.

“There’s no scheduling, no delivery slots, no day-long waits,” Hannon said.

This could be a big improvement for customers. If you’ve ever had to wait for your groceries to be delivered, or rushed home to make sure you’re there within the prearranged time window, you’d probably welcome DoorDash’s new set of promises.

For customers, this all sounds great. But how will it affect drivers?

What drivers need to know about being a DoorDash grocery delivery driver

The first question drivers ask would probably be: 

“Does this mean I have to do the shopping and the driving?” 

The answer is no, DoorDash drivers will remain drivers only; or rather, Dashers. The shopping part of the DoorDash’s grocery service will be performed by “embedded shoppers” supplied by the Adecco Group, a staffing company. Shoppers will work in the stores, preparing grocery orders and placing them on racks for drivers to pick up.

According to news reports, including an August 20, 2020 New York Times article, Dashers will remain independent contractors, while shoppers will be Adecco employees with benefits. So unless something changes, DoorDash drivers will be responsible only for picking up completed grocery orders and delivering them to the customers.

If this works as planned, it shouldn’t be too difficult for drivers. DoorDash has been working with some grocery delivery already, particularly for WalMart, although not all reports have been positive. Drivers are talking on social media groups about having to wait as long as 45 minutes for an order to be shopped before they can make the pick up. This could certainly put a crimp in their hourly rates.

There’s also the uncertainty about how fees will be paid to drivers. DoorDash plans to incentivize its customers with free stuff, and grocery delivery will (at least initially) be part of the $9.99 monthly DashPass subscription. That means subscribers will not have to pay any delivery fees, which makes us wonder how drivers will be compensated.

Another question is whether drivers will be able to opt out of grocery deliveries if they wish. What if you don’t want to haul a huge load of groceries to a customer’s home, especially inside an apartment building with a locked door and several flights of stairs? When a situation like that presents itself, will you be delivering or “schlepping?” Are you physically capable of doing something like that? Will the company provide special equipment for carrying multiple, or heavy, bags?

The announcement of DoorDash’s new venture is very recent, and still wrapped in that crisp, clean glow of newness and slight surprise. At this point we’re not hearing what the options are for drivers to opt in or out of grocery delivery. If you know something, or have access to inside info, please get in touch with us so we can spread the word.

How to make this work for you

For drivers, one nice aspect of DoorDash delivering groceries is that the company has ironed out some wrinkles that could develop with a venture like this. Since DoorDash has been providing delivery services for Walmart, drivers are already able to register their vehicle information. This tells them how large your car or truck is, and how many bags and boxes you’ll be able to deliver.

A great perk of having this service available is the possibilities for tipping. If a customer orders $100 worth of groceries, and pays you a 20 percent tip for delivering them, that’s a nice chunk of change. As long as the company plays the tip game straight with drivers, and also provides a decent basic delivery fee, this could be a nice way to do business.

If you don’t want to deliver groceries for your whole shift, it’s perfectly fine to do it part of the time. From what we can tell from Walmart delivery, you won’t have to schedule blocks of time for delivering groceries. Instead, they would come up for a driver just like any other delivery.

So, when you think it’s a time when people would typically buy groceries, you can switch from rideshare or another delivery service, and deliver groceries for DoorDash. 

The rollout is ambitious.  Grocery delivery will be available in the San Francisco Bay area, L.A., Sacramento, and other central coast cities from Smart & Final. Drivers in Chicago, Cincinnati, Milwaukee, Detroit, and Indianapolis will pick up groceries from Meijer and Fresh Thyme. 

After the initial part of the rollout is complete, DoorDash intends to expand further across the country, partnering with stores such Hy-Vee, and even D’Agostino, and Gristedes. Looks like that NYC six-story walk-up could definitely be part of the picture.

In addition to basic groceries, DoorDash will deliver ready-to-eat meals from grocery stores and markets such as Wegmans, Lucky, Kowalski’s, and others. That might be a good option for drivers who aren’t into carrying loads of filled bags.

Overall, we welcome DoorDash’s new effort, and here are the reasons:

• Drivers get additional opportunities to earn
• DoorDash (cleverly) takes advantage of shifting trends in the delivery economy
• Drivers may have some flexibility with their choice of what to deliver
• Tipping on large orders could be a great addition to driver earnings

Gridwise is here for you - Use us!

If you decide to go with grocery delivery as part of your driving gig, Gridwise can make juggling all the stats from your different apps much easier. You can track all your earnings and mileage, and we’ll tabulate them and put them in attractive, easy-to-read graphs that tell you everything you need to know. 

You’ll also get information about action at the airport, traffic issues, weather, and our awesome Perks tab. There you’ll find easy access to our blog and the Gridwise YouTube channel, plus deals and discounts designed just for drivers. If you haven’t yet, by all means download the app now.

We want you to stay in touch with us and connect with other drivers. Get into our gas card giveaways on a regular basis when you find us on Facebook. And please leave your comments below and let us know what you think about delivering groceries for DoorDash, as well as anything else that’s on your mind.

Most of the time, they work great. 

Whether you’re on Uber, Lyft, Postmates, DoorDash, Grubhub, Instacart, or another, the apps we use usually work well. 

They know where we are, who wants a ride or a delivery, how much it will cost, how much we’ll get, how we should get to where we’re going, and then… they give us reviews on how well the customer thought we did. 

But there are times when we drivers run into the dark side of depending on apps for our driving business. 

Have your tolls always been reimbursed? Has your app ever been hacked? And how about those glitches? Why is it, really, that you’re not getting your tips until three or four days later if you get them at all?

In this post, we’ll look at real stories from drivers who’ve put us onto some dastardly defects in the automated systems, and offer suggestions about what to do when the crossed wires somewhere in the system happen to affect you.

Here’s what we’ll feature:

• The glitches that get us
  • Tolls 
  • Hacks and scams
  • Phantom and random tips
  • Outages and bugs in apps
• How to get a glitch fixed

The glitches that get us

Let’s start by recounting stories we’ve collected from the Gridwise community and cyberspace in general, by category. 

Tolls

The apps claim they will cover the cost of our tolls, and to do our jobs efficiently, we just have to trust them. 

As an example, here is Uber’s toll policy. It tells us that tolls will be paid by the customer and added to the cost of the ride. 

Note, though, that if there’s a discount for electronic tolls, they’ll pay that lower price. If you want to avoid paying the difference, you’ll want to have one of those toll-paying transponders handy.

Yet even with the electronic pass, more than a few drivers have reported missing reimbursements for tolls. We got word from some Gridwise drivers that Uber wasn’t paying the tolls at all. 

When the drivers noticed the omission, they had to call Uber, engage in long-winded explanations (one driver likened it to “arduous dentistry”), all to have the person with whom they spoke blame it on a “glitch in the software.”

Uber did eventually pay them back, but at what cost? Another driver said the average phone call he placed, after many incidents of disappearing tolls, took 15 minutes out of his day. That’s a rude waste of a driver’s time.

Uber’s not alone in the missing toll game. Our sources tell us that Lyft is equally culpable. The glitch seems to pop up in places like New York, where the Taxi and Limousine Commission (TLC) regulates the cost of crossing from New York into New Jersey. The drivers involved had to prove this with screenshots, and complain to the TLC. 

In another case, we heard about a Lyft driver who got a bill for $5,000—for tolls, although this time it wasn’t Lyft’s fault. The driver had gone without her transponder, and the cute little camera captured her license plate and sent her a charge that she didn’t even know she had to pay. 

The driver never got the notice, but as we know, the DMV never forgets. Over two years the costs continued to mount, and when she finally received the bill, it was humongous. When she went to the media to get help, the DMV responded quickly. They told her she never got the original notice due to a glitch between their system and the highway’s system, because they didn’t get her apartment number.

Fortunately, that massive amount is uncommon, but it reinforces some of the things we should keep in mind when dealing with tolls.

Toll Tips

• Don’t leave home without a toll-paying transponder. If you don’t have one, understand that you’ll have to pay more than your company will reimburse you.
• Check your earnings after each toll trip, or at least at the end of your shift, for missing tolls.
• If something’s amiss, contact the company in writing, as well as by phone. They might make a quick fix during your conversation, but a written record can build a case for forcing the company to effect a lasting solution.
• Take screenshots of your toll payments (from your electronic payment account), for proof of payment.

Hacks and scams

The apps we use have huge databases, with customer information as well as ours. While customers might get the last four digits of their credit cards exposed to nasty hackers, we also have our driver’s licenses, registration, and insurance info up there on the cloud.

If you listen to the news at all, you’ve probably heard of a hack happening to a company you use a lot. But what about the ones you don’t hear about? On August 24, 2020, the former chief security officer for Uber was hit with federal charges for allegedly covering up a hack that occurred in 2016. 

This incident involved two hackers who demanded a six-figure payment in exchange for his silence. What did they have? A lot, including personally identifiable information (PII) for 57 million Uber users—and DRIVERS. Yes, it did include the driver’s license numbers for 600,000 drivers. Because the former security officer concealed and misled the Federal Trade Commission (FTC), he’s in big trouble.

In September 2019, a hack of the DoorDash app exposed the data of 4.9 million customers, and 100,000 delivery drivers—also including driver’s license numbers.

Criminal activity that homes in on data the apps collect isn’t restricted to this kind of hacking. There’s a common scam that’s been reported by almost all the apps, and it has to do with nasty people who want to get something that’s essential to us drivers … our earnings.

Here’s how it happens: You get a call, ostensibly from the customer support division of your app. They tell you it’s necessary to change your password immediately, and they offer to do it for you. Then … they get into your settings, and change the bank account from yours to theirs. After that, they hit “instant pay” to send your hard-earned dough to their bank account, and …

It might be hard to believe that a driver would fall for this, but an amazing number of them do. Check the social media groups, and you’re bound to see one or two innocent souls asking what happened, and an army of fellow drivers coming to the rescue with an explanation and instructions to change the password back immediately. 

In that same spirit, we’re offering some suggestions here:

Un-hack and de-scam yourself

• Protect your PII. If you’re worried about identity theft after a hack like the one Uber covered up, check the safety of your information and secure your identity.
• Do NOT change your password for anyone on the phone. The companies will not take the time to contact you that way, so anyone who calls you for the purpose of getting you to change information in the account is likely up to no good.

Phantom and random tips

Tipping is a perk of driving that often makes the job feel more worthwhile. We like to know when we get tips, how much they are, and most of all, we want to make sure they get added to our earnings. 

Alas, this doesn't always happen. Whether it’s less-than-admirable practices by the companies, as they try to withhold drivers’ tips to increase their take, or plain missteps in apps, it’s a pain for drivers when their tips don’t get delivered.

Slippery stuff

Instacart, Postmates, Grubhub and Seamless have all been caught taking portions of driver tips to make up the hourly pay they promise to drivers. The driver winds up receiving only part of the tip, and the company puts the other part of the tip toward the driver’s base pay. If you’re wondering how they got (or in some cases, may still get) away with this, you’re not alone.

The good news is, many cases like this have been exposed, and the companies have had to stop these unfair practices. Still, it pays to look out for it. Watch closely to make sure you’re getting all of your tips as well as your base pay.

Not so able apps

Glitches in the apps can also cause tips to be delayed or lost in cyberspace. A quick read of reports on Facebook pages for drivers and several Reddit threads will give you lots of evidence of the kinds of incidents that happen. In one case, the Uber Eats app removed the tip option for drivers on the customer side. The customer care specialist advised the driver that he should be patient, and that tips were not a guarantee. (Wonder if that person ever tried living on Uber Eats driving with no tips.)

For the most part, apps appear to be getting tips flowing within a few days, or even a few hours in some cases. Still, it’s frustrating. What can you do to protect yourself?

Keep track of your tips

• Don’t automatically assume that everything is correct. Check and make sure your company is acting responsibly, ethically, and that the app is working the way it should.
• Join social media groups that bring the driver community together. You can learn a lot by keeping an eye on what’s going on around the country, and the world, and join with other drivers to ensure you’re getting your tips, and fair treatment in general.

Outages and app bugs (payment, surges, customer contact, GPS)

There are times, of course, when technology just doesn’t work. Let’s look at the various ways this can happen, and how they can impact your driving gigs.

Payment glitches

This one hurts. Bad. In one case, an Instacart shopper in Tampa saw all his earnings “bounce back” from his bank to the company, due to a glitch in the system. He got some assistance from his local TV station, which helped him investigate the situation and get Instacart to fix the glitch. Needless to say, he didn’t go running back to work for Instacart after that happened. 

Another form of payment glitch is the “not getting pinged” issue. An Instacart driver says that she got tricked by the system when she was told an order she wanted to pick up was already claimed by another driver. She turned off the app, and lo and behold: several more batches made a pileup on her dashboard. Unable to take the calls due to her schedule, she had to cancel a bunch of orders, which is never a good thing for a driver’s status with a company.

Surge glitches 

Okay. We’re supposed to be savvy enough to know it’s not cool to follow the surge, but sometimes we do. It’s also fair to say that not all surge “glitches” are for real. While a surge is going on, for instance, Uber, tells you that a certain amount will be added to your next ride. Exciting! But then, the surge ends, or you leave the surge area, and it still says you’re getting that extra money—but you probably won’t.

Because that’s just the way the app works, it’s hard to say it’s really a “glitch,” although there are surge glitches. Once again, you’ll usually find them posted in social driver communities. For the best information, make sure you’re tuned in to social media that’s specific to your area. You can do the community a favor by posting there, too.

Customer contact and GPS issues

Probably too often, we have to get in touch with customers in order to complete a ride or delivery. This usually involves a text, because so many won’t pick up their phones, and sometimes the texting system just doesn’t work. This wouldn’t be such a big deal if customers didn’t have the ability to rate drivers, and potentially threaten their status with the company. 

Lyft’s system insists that the driver be at the location of the pin in the app before the ride can start or end. Obviously, this can often cause problems. You get to where you think the customer is, but the person might not be there, or the pin might not even be accessible by car. 

You have a few work-arounds here. By driving to the “real” pickup or drop off location, you can get the system to work for you. Or, you can enter the pickup manually, to override the pin situation. Just don’t do what one driver did—call Lyft every time it happened so he could still get paid.That could really ruin a good night out on the town.

Outages

Sometimes the system is just DOWN. Lyft is famous for freezing and locking out drivers. Maybe that’s why they have a whole page dedicated to what to do when the app freezes posted on their site. You might want to take some of these suggestions even if you don’t drive for Lyft, because other apps can freeze and shut down too.

You can always check the status of your app, to find out if it’s just you, or if the whole system is down by checking in with Downdetector. This link takes you to GrubHub’s status, but you can enter the app of your choice to find out what’s going on. And face it, apps and networks are run by humans, and robots, that make mistakes. There are some things we just have to live with—but we can’t live with these mistakes for very long, right?

How to get a glitch fixed

It’s a lot easier to forgive a mistake if you get at least some inkling that the people responsible are willing to fix it. Here are some suggestions for reporting and/or publicizing the kinds of problems you might have with your driving and delivery apps.

Call customer support. Always a good first move. Put your issue in writing to create a paper trail, and if all else fails, write a letter to the corporate office.

Call on your community. Check social sites to find out what other drivers are experiencing. As noted in some of the issues we covered here, there are times when a “glitch” is just a misapprehension about how the app might work. When the glitch is real, other drivers will be your best allies.

Call on the media. Although it’s unfair to accuse a company of deliberately messing up your chances for making a decent living, when you’re pretty sure you’re getting the shaft, trial by media is an effective option. 

Call on us! As you can see, we at Gridwise are always eager to know what’s going on in the world drivers navigate on a daily basis. If you have an issue, just contact us. We’ll get our researchers on the case, and hopefully help you find solutions to all your rideshare and delivery driving issues.

Go with Gridwise

To keep earning all the money you can through your driving gig, use Gridwise to track and optimize your time and energy. Download the app for airport information, events in your town, weather, and the best and most comprehensive earnings and mileage tracker you can imagine.

On the Perks tap you’ll get easy access to our informative blog and our awesome YouTube channel, plus deals and special offers just for drivers. Join us on Facebook for camaraderie with your fellow drivers, and participate in gas card giveaways.

Comment below if you have any questions or reports related to the problems apps can bring, and be assured that at Gridwise … we’re always on your side.

Signing up to drive for rideshare or delivery is pretty easy. 

You upload your registration, driver’s license, and insurance, and let them run a background check on you. As long as this all goes smoothly, you can get up and running in a few days.

And most of the time it does work like that. 

But lately we’ve been hearing reports of drivers getting held up because their background checks are taking F O R E V E R.  Worse yet, you might find that your access to the app is either not granted (if you’re new), or suspended (if you’re a current driver), if the background check shows up as “pending.”

It really can make you feel paranoid. Your mind races. What did they find? Do I have a felonious doppelganger out there in the world somewhere? I didn’t do anything wrong, I know it! How does this happen? It’s enough to make you want to scream to the Universe: “What did I do now??”

You have a clean driving record, and as far as you know, you haven’t committed any felonies … so what is the hold up? 

In the past, and especially now with that ever-present COVID-19 pandemic, some quirky things have been going on with the background check process. We’ll go through some war stories here, and offer suggestions for getting on top of the situation before it leaves you hanging forever. Here’s what we’ll cover:

• Why background checks get delayed
• What about your legal rights?
• What to do if your background check is past due

We also recorded a YouTube video that discusses these same topics. Check out the video below:

Why background checks get delayed

The dastardly pandemic

Right now, the biggest reason for delayed background checks is … you guessed it, COVID-19. What does that have to do with your driving and court records? Well, in many states and counties, the courts are closed. Yes, even now, almost six months after the pandemic started, that’s the case.

You might wonder why they have to go to a court to get your records; wouldn’t they in a database somewhere? 

The answer is yes, in most cases—but not always. Even today, in the midst of the technology age, many courts either have no computer systems, or have systems that are not up to date. Also, the in-person check is considered to be more thorough than the online-only check.

The company performing the background check (usually an outside firm like Checkr) must physically go to the courthouse and have a clerk pull the records. A post on the Checkr website explains how the situation of closed courts is delaying their procedures. 

Even if your information is in an electronic file, and an online check is adequate for your company, you could still find yourself in Pending Limbo. If a question comes up about your record, for instance, and it can only be answered by a person who works for the court, this could lead to a delay—possibly a lengthy one.

Software glitches in the app

Although the closures of courts due to COVID is a major reason for delays in background checks, it isn’t the only reason. There have also been reports of glitches on the app; i.e., it says your background check is pending, but it really isn’t. We got a report about a driver who hadn’t gotten Uber Eats pings for about a month, but couldn’t tell why that was happening.

When he examined his account profile for “documents,” it had all the checkmarks in the right boxes—except for one that said there was a “problem.” This driver remembered Uber had done one of those “continuous” background checks on him about a month before. Those involve periodically re-checking drivers to ensure there are no incidents they need to know about.

The driver knew Checkr had cleared him because he had an email that said so. It was the Uber app that had the “problem,” not him. He tried resetting the app, deleting it and re-installing, and cried out for help from other drivers. Some responded to him with similar issues, and the worst thing? None of them were able to work for as long as a month.

With the Greenlight Hubs closed (again, due to COVID), the driver is stuck trying to get help from Uber customer support. He and the other drivers he contacted didn’t get much more than the standard line: “We’re working on it.” 

Another driver with a similar issue was able to get help from Uber after contacting them by email. You have to be persistent with Customer Care.

Errors in the background check

No one is perfect, including the folks that perform background checks. This August 2019 article gives an interesting account of dozens of faulty background checks by Checkr. Many of these faulty checks led drivers to either not be approved when they applied, or to lose the place they had previously had on the platform. Many drivers sued Checkr for making mistakes … big ones.

Checkr merely takes an individual driver’s name and Social Security number, and runs checks across various databases. Here are some things that can happen:

• A person with the same name could have a criminal record;
• Charges against a driver could be dropped or expunged, yet still reported;
• They might check and report records that go further back than allowed by state law.

Companies restricting the number of drivers

In some cases, companies might want to keep the number of new drivers down, or eliminate those who aren’t very active on the platform. Make sure you’re being treated fairly here, and if you’re not? Speak up—loud and clear.

What about your legal rights?

The legal climate around background checks is not exactly sunny with a chance of a few clouds. It’s more like a typhoon with driving rain and hail the size of golf balls. 

There are a couple things about background checks that make them slippery in terms of legalities. For one, not passing a background check can cause a person to lose his or her livelihood. Many people have sued the rideshare and delivery companies, as well as the background check companies they use because they lost the opportunity to work.

The other side of the story involves customers’ opinions about the thoroughness of background checks on drivers.

Many riders and delivery customers have sued the rideshare and delivery companies because drivers have displayed criminal tendencies that would have been apparent on their criminal record—had it been thoroughly checked.

There are the kinds of checks we already described; namely, checking a person against criminal records by name, SSN, driver’s license number, etc.; and using fingerprints. Obviously, the fingerprint method is more accurate and exhaustive, because if a person has been arrested, the fingerprints will be on file. If the fingerprints of the driver match prints in a criminal file, there won’t be any question about mixed identities.

So … why don’t the companies use fingerprint-based background checks? 

Because using fingerprints for background checks is expensive for the companies, and is considered to be inconvenient and intrusive by prospective drivers. This September 2019 article in Vox tells of what happened in 2017 when officials in Austin, Texas wanted to make Uber drivers go through fingerprint-based background checks. Uber threatened to stop operating in the area, and they did just that—until the officials gave up on the idea.

There are a lot of legal issues around background checks, but the fact is, every driver has to get more than one of them. All the companies now check and recheck drivers’ backgrounds on an ongoing basis.

What to do if your background check is past due

Before you do anything, check into the cause of the problem:

• Did you provide all the requested information?
• Is it a problem with the courts?
• Is it a software issue?
• Could it be a case of mistaken identity?
• Do you have a criminal record that extends beyond the state time limit?

If you have any questions about what kinds of things the background check company is looking for, or about the time limits for certain convictions in your state, read this earlier Gridwise post for Uber, and this one for Lyft. This page from Checkr’s site tells you more about how far back in time each state goes when making background checks.

The court problems can’t be helped, at least for now. Unfortunately, you’ll just have to wait.

If you find that there’s a software issue, however, be relentless. Don’t stop contacting Customer Care until you get an answer and/or they fix the problem. If you want to get their attention, post on social media about what you’re experiencing. They’ll catch wind of your discontent, and maybe work a little harder to get things resolved.

In the case of mistaken identity, or the check looking at your record further back than the time limit in your state, do everything you can to stand up for yourself. There are laws in place to protect you, and you might be the one who has to make sure they are properly enforced.

Our best advice is this: If you get into a delayed background check situation with your company, try to work it out with them. If you can’t, and the situation is getting between you and your ability to make a living, consider seeking legal help.

Let’s hope things will get better once COVID-19 is no longer holding everybody back, and that companies, both the gig economy apps and their background checking services, develop a more respectful attitude toward drivers. 

And, oh yes, there’s one more thing you can do to protect yourself, especially when it comes to those periodic background checks: Work for multiple platforms. If you have more than one company to work with, you can move over when and if you have problems with a continuous background check. Also, if you’re a newbie, apply to at least two platforms, and see if one gets that background check done faster than the other.

The answer for multiple platform drivers: Gridwise!

When you download Gridwise, you have the ultimate assistant for rideshare and delivery drivers right there in your device. You can track earnings and mileage for all the apps you use, and display useful graphs that inform you about how each is performing in terms of putting money in your pocket. 

On our Perks tab, you’ll get cool deals and discounts for drivers, and access to our incredibly insightful blog, developed just for drivers. Get easy access to the Gridwise YouTube Channel, and join us on Facebook for Gridwise Gas Giveaways. 

We’ll also tell you what’s going on in town and at the airport, and give you a heads-up on weather that might affect your shift. What would you do without Gridwise? You don’t have to find out … download the app now.

What does a delivery driver do?

Delivery drivers are gig workers, meaning independent contractors who decide what job assignments, or “gigs,” they want to take on.

Gig workers choose when they work, which company (or companies) they work for, and how many hours a week they want to spend making deliveries. Groceries, prepared meals, retail purchases, Amazon finds, office supplies, and even alcoholic beverages are among the products these drivers deliver to their customers’ doors.

A number of companies and platforms use delivery drivers, including Amazon Flex, Uber Eats, Postmates, Grubhub, DoorDash, Instacart, Shipt, and others.

The job of delivery driver is performed by a diverse variety of people. Based on information we collected from a recent survey of 750 registered Gridwise drivers, we’ll share with you what we learned about them. 

First, we learned that delivery drivers can’t be pigeonholed. They’re male and female, are a wide range of ages and marital statuses, and come from all walks of life. Here’s a rundown of delivery driver demographics.

Most drivers are in the 40+ age group

People often have the impression that delivery drivers are teenagers, but as you can see, most of them are older. In fact, 61% are over age 40. This means they are mature and, most likely financially responsible enough to have money they can spend on products and services they want and/or need.

More men than women deliver, but there’s a good mix

Although the audience is predominantly male, there are enough women to make this a diverse market for products and services that cater to people of both genders.

Most delivery drivers are married

As you can see, 61 percent of delivery drivers are either married or have been married at some point in their lives.

Most delivery drivers are also moms and dads

Many delivery drivers have needs that cater to their parental roles, and also to their kids. This group is family oriented, and often works during hours when they’re not tied down with their kids and their active schedules.

Delivery drivers can, and do, choose their own hours

While many drivers work full time, nearly one-half stick to part-time hours. This might mean that when they’re not out there delivering to customers, they’re working at other jobs.

Delivery drivers are educated

Many delivery drivers are well-educated, and may also be open to opportunities that allow them to expand their knowledge. They’re a great audience for marketing training programs and other sources of learning for expanding career opportunities.

What gig platforms are popular with delivery drivers?

Most drivers work for more than one gig platform and many delivery drivers are also rideshare drivers.

Vehicle ownership dominates over leasing and renting

A large majority of delivery drivers use cars they own for their delivery businesses. This means they’re going to be focused on caring for the vehicle, in terms of maintenance, and to some degree, appearance and cleanliness. 

Many delivery drivers have a vehicle specifically for their driving business

Multiple vehicles means a greater need for automotive expenses. This means delivery drivers are prime contacts for services that help them procure, register, insure, and maintain their vehicles.

What car makes are popular with delivery drivers?

Toyota is by far the most popular car make, followed by Honda and Nissan.

Delivery drivers clean their cars often

Keeping a clean vehicle has always been important for drivers, but the COVID-19 pandemic has made cleanliness more crucial than ever. Cleaning up spills, and even eliminating food odors, become issues that must be dealt with, particularly if the vehicle in question is being used for both delivery and rideshare. 

Financials

For obvious reasons, earnings are important to delivery drivers. Here are the questions we posed during our survey, and our drivers’ answers, to questions about the ways they motivate themselves and tend to the administrative work of running a business.

Do you set weekly goals?

Do you track your mileage?

Have you purchased rideshare insurance?

Do you use a separate bank account for your gigs?

In many ways, delivery drivers make good business decisions, but not many follow through on insurance and banking requirements for self-employment.

Not sure how you can market to delivery drivers? Let the Gridwise team build a multichannel strategy for you!

Still not 100 percent sure how you should be engaging with delivery drivers?

No problem!

At Gridwise, we have a team of marketers and designers who are experts in engaging and converting rideshare drivers across all channels and we’ll be happy to design a personalized strategy for you!

Simply reach out to sales@gridwise.io and we can set up a strategy session.

Tom Kelley is one of those guys who doesn’t just talk about getting things done—he gets things done. 

So in early 2019, after being a uber driver for a few months, he had an idea for an app-based radio station just for drivers.

And he decided to make it happen. 

Kelley pulled together a team of people on the move: rideshare and delivery drivers, truckers, pilots, and co-pilots, and together they created TNCRadio.Live.

A few weeks ago Kelley sat down with Gridwise and shared some intriguing behind-the-scenes information. In this blog post we’ll tell you his story, reveal more about his entrepreneurial endeavor, TNCRadio.Live, and look at what the future might hold. Here’s what this post covers:

• What is TNCRadio.Live
• Tom Kelley’s story
• Early success
• How to listen and what you’ll hear
• What’s coming next

What is TNCRadio.Live

TNCRadio.Live is an Internet and app-based station that broadcasts directly to rideshare and delivery drivers. 

Like Gridwise, TNCRadio offers information about local traffic, road closures, and area events. Kelley told us he believes his new station offers drivers the information “they need to do their jobs.”

After talking with drivers, Kelley noticed they often didn’t have the slightest idea how to get this kind of information. 

On top of that, he says, “They don’t know what they don’t know.” This might include how to download tax information or how to contact Uber or Lyft when all the hubs are closed.

Kelley is grateful for Gridwise and all that the app offers drivers. But he recognizes how hard, not to mention unsafe, it can be to use an app when you’re driving down the road at high speed. That’s why listening in can be helpful along with keeping your eye on Gridwise.

TNCRadio.Live broadcasts all day and night, providing the latest news about the driving business, stories covering crucial driver topics, podcasts drivers should know about, and their own interviews with people whose knowledge can help drivers. Much of the programming can be downloaded as podcasts.

To give you a flavor of what listening to TNCRadio.Live is like, here’s a sample of their daily broadcast schedule:

Kelley says the station’s programming is aimed at “anybody who spends their days (or nights) driving the streets of Houston, Texas.” 

How it happened: Tom Kelley’s story

Like most of the others involved in TNCRadio.Live, Kelley has a history as a driver. 

He got into rideshare in early 2019 when he opted to retire after a long career as an IT executive. He says he wanted to do something “exciting and different,” so he started rideshare driving. 

Kelley has driven for both Uber and Lyft, and thoroughly enjoyed it. The flexibility of the hours, the reasonable amount of money he earned, and the satisfaction of knowing that he was doing something valuable, were exactly what he’d been looking for. He even drove for Uber Eats for a while, and found that to be a positive experience as well.

Kelley noticed, while he was out there, that the other drivers waiting for rides at the airport were hungry for information. They’d tap him for what he knew from his Gridwise app and he’d share it with them. But when he suggested they download the Gridwise app, they’d say things like, “Huh? Why do I need that? I already have the Uber app.” Obviously, drivers needed more education. How could he do that, and create a substantive side gig for himself at the same time?

Around this same time, Kelley heard about a guy who was pulling in $80,000 a year playing Led Zeppelin playlists on the Internet. Who wouldn’t want to get in on that kind of gig? Kelley called some friends in the radio business, most of whom were either driving, trucking, or piloting, and they put it all together. That’s when TNCRadio.Live was born.

The initial plan was to launch in late March 2020, but we all know what happened then. 

Yes. The pandemic. 

Kelley could no longer drive because he had to remain quarantined for the safety of a relative who was living with him. But being the enterprising and quick-thinking person he is, he wouldn’t stay stuck in a rut. He kept going. He threw his heart into developing TNCRadio.

Lockdowns made it impossible for the newly formed group to meet in person. Even though they could do voiceovers and production work while in isolation, live radio needs that up close and personal collaboration if it’s going to sound “real.” The time to launch just wasn’t right, but they knew that when it was time, they’d be primed and ready to go.

By summer, some signs of life were stirring around Houston. Kelley says he noticed a pick-up in traffic and action, and the group had more freedom to gather and collaborate. The moving parts started to fall into place, and the team was ready to go. On July 1, 2020, TNCRadio.Live had its official launch. 

Early success

About six weeks after the launch, TNCRadio.Live had about 1,000 regular listeners. From this warm reception, Kelley and the others could see that there’s a strong demand for the kind of information this station and Gridwise send out to drivers. 

Despite being off to a great start, the TNCRadio.Live team is learning that the people who need the station the most are the hardest to find. They’re committed to spreading the word, though, and it will be exciting to watch them grow.

More movement, Kelley believes, will start happening as schools open. Not only will commuting families generate traffic, but parents may also be free to go back to work. After all, many jobs can be done from home for only so long. When people do start returning to work, this could be a real boost to rideshare.

While rideshare and delivery drivers are TNCRadio.Live’s main target audience, Kelley is eager to welcome people from other industries, too. He’s hearing from nurses, contractors, truckers, and others who spend a great deal of their working hours driving from one location to the next. They appreciate the information about Houston’s streets and highways, and they also enjoy hearing the banter about sports, the rideshare business, and driver stories.

In fact… if you want to share your story with TNCRadio.Live, all you have to do is get in touch with Kelley through the website. He’s always looking for people with personality to come on the air with him and share their experiences. Although at this point TNCRadio.Live is focused on Houston, Kelley says stories from anyplace else on the planet where people drive will be warmly welcomed. Use this link to get in touch with TNCRadio.Live’s driver story reporter.

How to Listen

Also, whether you live in Houston or some other location, there’s sure to be something you’ll enjoy listening to on this new station created just for drivers. The app is free and you can download it here, although right now it’s Android-only. If you have an iPhone rather than Android, you can listen directly from the website. 

Because all the talent on TNCRadio.Live are also drivers, they have their fingers on the pulse of all the goings-on in the driver community. They cover such topics as:

• Smart driving practices
• Driver classification
• Government interference in the gig economy
• Connecting people with government resources
• Driver safety
• Building a better driver community
• Serving the general community

The station offers insightful tips to drivers, and the information it provides can be a big help. For instance, Kelley sees the value in knowing how long it will take to complete a ride. Passengers tend to have more patience about a traffic jam when they’re warned about it ahead of time. Happy passengers often tip, right? And that makes every driver happy.

As an example of how TNCRadio.Live helps people in their community, Kelley shared a heartwarming story about a report of someone stuck in Houston’s oppressive heat without an air conditioner. The station was able to connect the person with the right government agency, and a new air conditioner appeared. As this shows, TNCRadio.Live is not just informative and fun. Kelley and the rest of his team have a sincere intention to build and support the driver population and the surrounding community.

What’s coming next?

When we asked Kelley what his plans are for TNCRadio.Live, he didn’t hesitate. He said they want to get “really, really good at taking care of Houston.” While he believes they have a good thing going already, there’s more that he wants to accomplish so he can take it to the next level.

Once that happens, Kelley and his partners hope to take TNCRadio.Live to more cities. When they do, they’ll be looking for drivers who have radio experience and talent. Stay tuned, and you could become a TNCRadio.Live star.

In the meantime, stick with Gridwise for more great stories about cool drivers like Tom Kelley. Our blog is just a click away, along with discounts for drivers, and links to the Gridwise YouTube channel, all on the Perks tab.

Track your earnings, monitor your mileage, get airport info, event times and places, weather, and more, when you download Gridwise. And, don’t forget to enter to win a gas card in our regular driver contests on our Facebook page.

It came right down to the wire, as Uber and Lyft threatened to suspend operations in California at midnight on August 21.

Hundreds of thousands of drivers would have been out of work. Passengers and delivery customers would’ve had to look elsewhere for a way to get around and have their goods brought to their doors. Chaos would have reined in the state.

If all this had happened, it would’ve been the result of a previous court order for the rideshare and delivery companies to reclassify their independent contractors (aka, drivers) as employees by August 20, 2020. The companies had five days to appeal that ruling, and they made it just in time. A decision in their favor, to hear the appeal on October 13, came down during the afternoon of the August 20 deadline. 

Since a decision won’t be reached until at least a few weeks after the hearing, the October 13 date provides the companies with ample time to wait for the outcome of the November 3, 2020 election. That’s when Proposition 22, a ballot measure that could reverse parts of the California law known as AB5, will be up for a vote. (As you undoubtedly recall, AB5 orders companies to reclassify drivers as employees.)

While many are frustrated that the companies have not been forced to comply with California’s AB5, the companies, the remainder of the state’s drivers, and customers breathed a huge sigh of relief.

Although we realize this is a California case, the decisions that are ultimately reached could send San-Andreas-sized tremors across the country, shaking up all the companies and their gig workers in every state. That’s why, in this blog post, we’re going to cover:

• Why companies want drivers to be independent contractors, and not employees
• What AB5 mandates
• What Proposition 22 is, and how drivers might benefit from it … or not
• Other proposals companies have introduced to deal with drivers’ needs
• What could happen if Uber and Lyft are forced to comply with AB5, and what that  means for drivers everywhere
• How drivers can protect themselves from losing their gigs

We also did a video discussing this topic on our YouTube channel. Check out the video below.

Why companies want drivers to be independent contractors, and not employees

We’ll start by saying that we know what many drivers want: to be employees rather than contractors. They want to get benefits and protection they would receive from being employed full time.

For the companies that offer app platforms for drivers, however, it’s a whole other angle.

Let’s face it. Uber, Lyft, and other driving gig companies exist for the purpose of making a profit. All of them have struggled to do that—even with the freedom to avoid paying the costs of benefits and taxes for drivers who work as independent contractors. 

With the help of some law and economics professors, reporters for the website Splinter found that, even back in 2015, the costs of paying benefits to just one California driver earning about $50,000 per year would be extraordinary. Here’s an estimate of what the companies would have to lay out:

• Federal taxes for unemployment, disability, Social Security, and Medicare: $4,940 per year
• Retirement and health insurance plans (San Francisco Bay Area): $15,483 per year
• Total for one driver for one year: $20,423

Yipes! There’s no exact figure for the number of drivers in California, but we estimate around 260,000. Multiply that by $20,423 (the cost of covering employee expenses) and the companies could be looking at around $5.3 billion each year—in California alone.

Even if we don’t count the drivers who would work under 30 hours per week, and therefore not qualify for full benefits, the bill would still far exceed the $500 million in annual revenue Uber says it would lose if the company ceased operating in the state.

What AB5 mandates

In a previous post, we took you through the details of AB5. So here we’ll simply state that it requires companies to treat those who use their apps as employees. So, companies would have to pay that $20,423 figure per driver, per year.

AB5 went into effect on January 1, 2020, and the companies have not complied with it. They argue that they do not have a relationship with drivers like what is described in the law. After the state sued and the companies appealed, a judge denied the stay on the order and told the companies they’d have to institute an employee-based system by August 20, 2020.

The companies took their appeal to yet another court, and on August 20, a hearing was scheduled for October 13. Along with buying them time to prepare for the possibility of losing on appeal, this date also gets close enough to the November election to allow Proposition 22 to play a prominent role in the eventual outcome.

What Proposition 22 is, and how drivers might benefit from it … or not

On November 3, 2020, California voters will vote on whether they agree with the language in Proposition 22, such as: 

• AB5 does not apply to app-based drivers;
• App-based drivers are to be classified as independent contractors;
• App-based drivers are workers who provide delivery services through an application, or use a personal vehicle to provide pre-arranged transportation services through an online-enabled application or platform;
• Other types of workers will still be governed by AB5.

Whether Proposition 22 is beneficial for drivers depends on how you look at it. If you want to be an employee, then this will not help you. If you wish to remain an independent contractor, then this proposition will allow you to do that. Obviously, the companies like it. They’ve put a lot of money behind it, too—about $110 million so far.

It appears that many drivers also support the proposition. According to a survey we recently conducted of more than 750 drivers, 64.8 percent would prefer to remain independent contractors, while only 23.4 percent would rather become employees.

The companies are well aware of driver preferences, and they also understand that some drivers need and want more support from them. In an effort to show their willingness to meet drivers halfway, they’ve taken steps toward making drivers feel more secure as independent contractors.

Other proposals companies have introduced to deal with drivers’ needs

The companies realize they must find ways to treat their drivers better. They have their image to consider. Also, it’s pretty hard to imagine what they’d do if frustrated drivers decided to walk away from the platforms en masse. Here are a few ideas the companies have floated so far, to escape the extreme measures of AB5 and any other legislation like it that could crop up in other states.

A franchise model. If the companies offered drivers the opportunity to operate as franchisees, then Uber, Lyft, and the rest of them would not be in direct control of their independent contractors. This would satisfy one of the main provisions of AB5, which uses evidence of company control to determine whether a worker is an employee.

Benefits Funds. On August 10, 2020, Dara Khosrowshahi wrote an op-ed for the New York Times titled, “I Am the C.E.O. of Uber. Gig Workers Deserve Better.” In the article, Khosrowshahi said he’d be willing to establish “benefits funds" that give workers cash to use “for the benefits they want, like health insurance or paid time off.” 

Also in the article, Khosrowshahi expressed his belief that current employment laws are outdated. He doesn’t think workers should have to choose between full-time employment or being fully independent. Rather, he envisions a “third way for gig workers,” with his benefits funds idea one representation of what that might look like.

If Uber and Lyft are forced to comply with AB5, what would it mean for drivers everywhere?

AB5 is a big question mark right now. No one knows what’s going to happen with court decisions, nor does anyone know the fate of Proposition 22. That will be up to the courts, and ultimately California voters. 

But we can speculate about what could happen if companies are ultimately forced to comply with the law. Here are a couple of possibilities:

1. Drivers as employees may only be able to get benefits if they work 30 hours or more. The companies could limit work time by controlling the number of hours a driver is allowed access to the app. That could mean fewer drivers earning what they did when they could work as many hours as they wanted (within reason).
2. Having to pay more than $20,000 per year for each driver-employee could motivate companies to find other ways of getting things done. How? Well, even though we haven’t expected to see an influx of autonomous vehicles anytime soon, we may feel differently if companies are forced to pay drivers far more than they do now. In other words, that robocar we’ve all been dreading might just roll out way ahead of schedule.

Once again, we want to stress that no matter how this situation turns out, it will have global repercussions. That’s why it’s so important to be aware of it, no matter where you live. In fact, it’s not out of the question that this and/or other state legislation pressuring companies to classify drivers as employees will be evaluated on the federal level. If you wonder how that might turn out, well ...

Decisions issued in 2019 by the US Department of Labor reflected the view that drivers are independent contractors. The author of one opinion, National Labor Relations Board associate general counsel Jayme Sophir, states: 

“Drivers have virtually complete control of their cars, work schedules, and log-in locations, together with their freedom to work for competitors of Uber, provided them with significant entrepreneurial opportunity. On any given day, at any free moment, UberX drivers could decide how best to serve their economic objectives: by fulfilling ride requests through the App, working for a competing rideshare service, or pursuing a different venture altogether.”

Knowing the federal perspective, it’s hard to see how the companies wouldn’t win if they challenge state laws on the federal level. This makes it clear that the federal government’s position aligns with the companies: that drivers are independent contractors. 

The Department of Labor’s opinion was issued to help settle arbitration between Uber and about 60,000 drivers, who filed arbitration demands over their employment status. Nonetheless, it will almost certainly be cited by any attorney who takes a future case like this to the federal level.

If you’re one of the drivers who would prefer to be an employee, the battle isn’t over yet in California, and may not even come close to influencing policy in other parts of the country. We’ll keep our ear to the ground for any new rumblings from the Golden State. In the meantime, here’s what you can do.

How drivers can guard against losing their gigs

We know. It seems like we’re telling you this more and more, for a variety of reasons. Sit in a comfortable position, close your eyes, take a deep breath, and chant the driver mantra: 

Work. For. Multiple. Platforms.

When you’re positioned to pivot from one company to the next, you can make sure you keep working, no matter how the legal climate might change. This is always a great idea—but when there’s a possibility that a company can bail on operating in your area, you’ll need backup.

As we saw in the case of California, Uber and Lyft threatening to leave the state caused some huge ripples in the media. It was hard to watch any business news without hearing all about it. And in California, we imagine the news reports were even more numerous.

As you know, when you work for multiple platforms, Gridwise is more essential than ever. Use our amazing new features to track your earnings on all the apps you work with, and let us track your mileage for tax deduction purposes, too. 

And … you get info on events, airport traffic, and lots of perks, such as easy access to our blog and the Gridwise YouTube channel, as well as driver discounts and special offers. Why would you ever drive without the ultimate rideshare and delivery assistant? Download Gridwise now.

So, what’s your preference: employee or contractor? Make a comment below, or find us on Facebook to share your thoughts with the Gridwise community.

The people who drive vehicles for Uber, Lyft, and other transportation network companies (TNCs) are a fascinating cross section of the general population.

Their job is straightforward: to prepare their cars for riders, wait to hear from riders who call them through an app, pick up riders, and drop riders at their destinations.

Because of the nature of their jobs, rideshare drivers need many of the same products and services that make driving their cars easier. 

Some essentials include accessories; equipment, such as dash cams, and safety and cleaning supplies; fuel; car maintenance; and car repairs. Drivers also need services and tools to make running their business easier. Other must-haves include help with tracking their mileage and other tax deductions, assistance with legal issues and accounting, and options for insurance. 

The fascinating thing about the rideshare driver population is, while they have all these common needs, they’re incredibly diverse in terms of age, education, family life, and social status. Because of this, there are all kinds of products and services that can grab their attention—and if you know how and when to appeal to them, you can hit a very responsive target audience.

To help you envision what the rideshare population is like, let’s look at a few pertinent facts. Data from our July 2020 demographic survey of more than 750 rideshare drivers present a picture of the breadth and depth of the rideshare driver population, and this provides ideas for how you can benefit from marketing to them.

Who are rideshare drivers?

The detailed breakdown of the many characteristics of rideshare drivers is rather surprising. 

Take a look at the age, gender, marital status, and other demographic data to imagine how you can leverage this driver group to market your services and wares.

Rideshare drivers are generally 30 years or older

Our survey shows that the vast majority of drivers are actually over 30 years with the highest density of users being in the 50-59 year old range.

More men than women drive, but there’s still a healthy mix

Rideshare drivers are predominantly male, but women are certainly represented.

Many are married

Rideshare drivers are split down the middle when it comes to being part of a couple or staying single.

Even more have children

Many rideshare drivers relish the flexibility of their jobs so they can work around the kids’ crazy schedules. 

The majority of rideshare drivers consider themselves full-time drivers

Many gig workers consider themselves full-time workers and put in 35+ hour weeks behind the wheel regularly.

Rideshare drivers are well-educated

Rideshare drivers are a educated bunch with a many having advanced degrees. At the same time, a number of drivers would be open to learning more about trades and skills that allow them to work in jobs other than rideshare driving. 

Most rideshare drivers are on multiple platforms

Drivers have options when deciding where to focus their efforts. As they adapt to new economic conditions, we see them increasingly using more than one app to find riders. Many are crossing over to mix delivery driving in with rideshare.

Most rideshare drivers work for both Uber and Lyft, but there are still sections that choose to work with only Uber or only Lyft.

Uber attracts the most drivers, to be sure, but Lyft also has a great deal of appeal. "Other" consists of apps like Juno, Roadie and Via.

Most rideshare drivers also do delivery work

Most drivers are also working for grocery and food delivery on apps like Postmates, Instacart, Grubhub, Shipt and Doordash in addition to rideshare driving.

More drivers own their cars than lease them

Most drivers do own their vehicles instead of leasing or renting from places like Hertz or HyreCar.

Many drivers have a vehicle specifically for rideshare

Surprisingly, more than half of all drivers purchased their vehicles specifically for rideshare driving. This means they likely have more than one vehicle, and could benefit from more than the average share of vehicle maintenance and care products.

Cleaning is crucial for rideshare drivers

Drivers are constantly being rated by their customers, and cleanliness is a crowd-pleaser. Here you can see that drivers clean their cars a lot, so products and services that make this easier for them will be in demand. This chart shows how frequently drivers clean their cars.

Rideshare drivers generally prefer to be independent contractors

Rideshare drivers keep close track of their earnings and goals

Drivers also keep a close eye on their rideshare miles for tax purposes

Many drivers have you purchased rideshare insurance

Most rideshare drivers do not have a separate business bank account

Drivers are conscientious about tracking information related to calculating their net income, but many would benefit from knowing more about rideshare insurance and banking. Those who market products in such areas will definitely find, in rideshare drivers, a population in need of their services.

And, as the next chart shows, the rideshare driver population has a healthy income level. This means they can afford products and services that will allow them to increase their profits and improve their lives—and even have a little fun.

Not sure how you can market to rideshare drivers? Let the Gridwise team build a multichannel strategy for you!

Still not 100 percent sure how you should be engaging with rideshare drivers?

No problem!

At Gridwise, we have a team of marketers and designers who are experts in engaging and converting rideshare drivers across all channels and we’ll be happy to design a personalized strategy for you!

Simply reach out to sales@gridwise.io and we can set up a strategy session.