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California Uber Drivers Reap $1 Billion in Benefits Since 2020

Uber

Uber says it has made an investment exceeding $1 billion in benefits for its California drivers and couriers since 2020.

This investment is aimed at enhancing the working conditions and overall well-being of its vast network of drivers and couriers across the state, the company said in a Thursday (April 26) blog post.

The initiative began after California’s passage of Proposition 22 in 2020, which provides protections and guarantees for workers, according to the post.

Approved by California voters at that time, Proposition 22 allows companies like Uber to classify app-based drivers and couriers as independent contractors, while also providing them with additional benefits.

Uber’s investment covers a wide range of benefits, including a minimum earnings guarantee, healthcare subsidies, and occupational accident insurance, the post said.

During the fourth quarter of 2023, drivers earned a median of $33 per hour during the time they were active on a trip, per the post.

Nearly 90% of California drivers support Proposition 22 because it provides independent work, a flexible schedule and benefits, the post said, citing independent surveys.

“In this tough economic climate, app-based work continues to be a constant in people’s lives, providing the opportunity to earn when, where and how they want — which is why more drivers and couriers are choosing to earn on the Uber platform than ever,” Uber Head of US Mobility Camiel Irving and Head of U.S. Delivery Sarfraz Maredia wrote in the post.

The company reported in February that it has 6.8 million monthly drivers and couriers who earned nearly $62 billion across the platform, a figure that was up 24% year over year on a constant currency basis.

Uber CEO Dara Khosrowshahi said Feb. 7 during the company’s quarterly earnings call that active drivers were up 30% year on year and that “average engagement [of those drivers] was up 10% … drivers who are earning … $33 per utilized hour are staying on the platform for longer.”

In another recent development, the company said April 8 that Uber Eats now has 1 million merchants around the world on its platform. The online ordering and delivery platform reached this milestone about 10 years after it was piloted under the name UberFresh with a handful of restaurants in Los Angeles.