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It gets complicated. See [1]. Basically, if Uber wanted to prevent employees from also taking rides for Lyft it would have to provide several minimum guarante
by mdorazio 6y ago
It gets complicated. See [1]. Basically, if Uber wanted to prevent employees from also taking rides for Lyft it would have to provide several minimum guarantees that would significantly increase driver costs. Namely, total comp regardless of rides provided needs to meet or exceed minimum wage and worked overtime would need to be paid as such. In other words, to prevent a driver from accepting Lyft rides for 8 hours, Uber would either have to pay the driver for any time they are not driving fares around during those 8 hours or increase payment until the drivers get the equivalent of minimum wage.
If this were to happen in practice, you would most certainly see a drop in the number of drivers and an increase in per-mile costs to customers.
[1] https://sbshrs.adpinfo.com/blog/pay-rules-commissioned-tipped-employees https://sbshrs.adpinfo.com/blog/pay-rules-commissioned-tippe...