2019-11-25
|The NETWORK
|Source: www.geekwire.com
The Seattle City Council unanimously passed legislation Monday that will establish a minimum wage for Uber and Lyft drivers and raise per-ride taxes to pay for city programs.
Seattle Mayor Jenny Durkan introduced the pioneering “Fare Share” program in September as a way to extend the city’s worker protections to gig economy drivers. The program is the latest in a series of regulatory headaches for Uber and Lyft as regulators crack down on their labor practices.
“Our Fare Share plan invests in first-in-the-nation protections for drivers, more housing near transit, and transit projects that will help keep Seattle moving,” Durkan said in a statement Monday. “It is the right thing to do, and I applaud the City Council for moving quickly to ensure that more drivers can afford to live near where they work, and everyone, regardless of income or ability level, has access to high-quality transit.”
Durkan plans to sign the legislation into law later this week.
Fare Share introduces a new tax of 51 cents per Uber and Lyft ride to fund affordable housing construction and complete the city’s beleaguered streetcar project. Seattle already charges 24 cents per Uber and Lyft ride to fund wheelchair accessible taxis and cover the costs of regulating the industry. The new tax will bring the total fees to 75 cents per ride. It will apply to all rides that originate within Seattle city limits. Durkan estimates the tax will generate $133 million in new revenue by 2025.
(Editor’s note: The new fee is technically 57 cents but 6 cents will be offset by lowering existing fees on ride-hailing services)
Details of the minimum wage for drivers are still being hammered out. The city is commissioning an independent study to determine how to apply minimum wage standards for drivers who are currently categorized as independent contractors and largely responsible for their own expenses. The minimum wage will take effect July 1, 2020.
The city plans to spend $56 million of the new revenue to complete construction of the Center City Connector streetcar, an overdue project costing tens of millions more than initially estimated. More than $52 million will be invested in affordable housing projects that the city estimates will produce 500 new homes near transit. An additional $17.75 million will be used to create a Driver Resolution Center, an organization that will arbitrate between ride-hailing companies and drivers who have been deactivated from the apps.



