Uber drives eye IPO wealth, call for strikes in the US and UK

NEW YORK (Reuters) – Some Uber Technologies Inc drivers in the United States and the UK said they would beat Wednesday and protest at what they call low pay one day before the riding company launches its first public offering, appreciating it in as much as 90 billion dollars.

Drivers and regulators over The whole world has criticized Uber's business methods almost from the moment the launch started.

CEO Dara Khosrowshahi, employed to help move the company past a number of scandals and manage IPO, has promised to better manage drivers. For example, Uber pays more than a million US $ 300 million in one-time bonuses, for example, and has changed policies to allow riders to tip.

Uber has passed and most successfully reversed attempts to force it to treat drivers as employees, claiming that its main business is a platform that brings riders and drivers together. And the money-losing company is under pressure to cut costs.

Uber has 3 million drivers globally, and it is not clear whether the work actions can significantly reduce the service, even though the organizers have gained widespread publicity.

"Say no to greed," announced British Union group United Private Hire Drivers of Twitter, calling for a "digital picket line" in London and three other cities on Wednesday.

In the US, New York, Los Angeles, San Francisco, Chicago and several other big cities have scheduled activities. Many want better pay from Uber rival Lyft Inc as well.

"Both Uber and Lyft have said that the biggest threat to investors is the driver's dissatisfaction. They know they are paying too little to keep drivers happy," said Los Angeles organizer Brian Dolber.

Uber and Lyft have evenly tiled In particular, in the more established markets where they have reduced incentives and bonuses to attract new drivers, they have also developed more complex formulas to determine what riders are paying and which drivers are serving.

Both companies have recently Slashed per mile rate drivers earn in Los Angeles and San Francisco, and some drivers estimated a 10 percent to 20 percent loss in revenue, lifting the hourly wage increase over the past two years and averaging over $ 20 per hour. [19659004] An uber representative in a statement said drivers were the heart of the business. "Whether there is more consistent earnings, stronger insurance coverage or fully funded four-year driver or their families, we continue to improve the experience for and with drivers, "the person said.

Uber noted that a recent study, whose authors included current and former Uber employees, showed the driver's gross revenue of an average of $ 21 per hour.

Drivers are classified as independent contractors, lacking paid sick and holiday days and having to pay their own expenses, such as car and petrol maintenance.

A study by left-leaning Washington Think Tank Economic Policy Institute estimated that after all costs and taxes, Uber drivers earned the equivalent of $ 9.21 in hourly wages.

It's difficult to organize drivers, but said San Francisco Bay Area-based Edward Escobar, who founded the Alliance for Independent Workers four years ago. The drivers often work part-time and, sometimes, for a variety of ride-hailing and delivery services.