IPOs have sent Uber and Lyft fares skyrocketing, while driver pay plummets / Boing Boing

From the article:

The public markets are hungry: as Uber and Lyft look to IPOs to let their investors — who have been subsidizing 40-50% of every ride — redeem their shares through sales to the public capital markets, the companies are desperate for ways to reduce their unprofitability and increase those share prices.

Luckily for them, the rideshare companies operate “two-sided markets,” a darling of neoliberal economic orthodoxy, wherein they are able to control the prices that customers pay and the share of those payments that reach drivers, and that means they get to fuck everybody over.

Both companies have been ratcheting up fares as they have increased their exposure to the public markets, but not only are they not sharing these new revenues with drivers — they’re actually cutting real wages to drivers.

Source: IPOs have sent Uber and Lyft fares skyrocketing, while driver pay plummets / Boing Boing

I have a real problem with corporations that fuck over the people working for them. Let’s be real, Lyft and Uber drivers are employees. Nonstandard ones, but in the current world they are still employees.

This is a labor issue.