"Excessive Fees" US Uber Drivers Strike... Stock Hits All-Time High

Thousands of workers for U.S. ride-hailing companies such as Uber and Lyft went on simultaneous strikes in 10 cities on the 14th (local time). Unlike companies that revealed unexpectedly strong earnings, the workers claim they are not guaranteed fair income due to excessive fees. On the day of the strike, Uber's stock price surged to an all-time high, boosted by strong earnings and a share buyback announcement.

[Image source=AP Yonhap News]

According to the organizer, Justice For App Workers (JFAW), Uber and Lyft drivers, as well as DoorDash delivery workers, held strike protests in cities including Chicago, Miami, and Philadelphia. JFAW stated, "We are tired of the abuse by app platform companies," and added, "This strike is the largest protest ever against the giant sharing economy platform companies." The number of strike participants is estimated to be in the thousands.

They argue that due to excessive fees, platform workers are forced to work long hours of over 80 hours per week yet are not guaranteed fair income. They also expressed significant concerns about safety and the fact that companies can easily ban drivers from operating, contributing to workers' anxiety. According to Gridwise, as of the second quarter of last year, the average hourly wage for Uber and Lyft drivers was estimated to be between $18 and $21. Although the exact commission fees taken by platform companies from service charges have not been disclosed, they are generally known to be around 20 to 25%.

Notably, the strike took place on the same day Uber announced a $7 billion share buyback and recorded its highest stock price ever. This signals that Uber, which achieved profitability on an annual basis for the first time, is ending its previous cutthroat competition and focusing on net profits. Following the share buyback announcement, Uber's stock closed at $79.15 on the New York Stock Exchange, up 14.73% from the previous session. Jefferies raised Uber's target price to $95.

However, the strike reportedly lasted only a short time for some drivers, so its impact was limited. Uber stated, "More drivers than usual are on the road," and dismissed concerns by saying, "There is no impact on operations or passenger trust." Wall Street also assessed that the strike movement would have a limited effect on Uber. Daniel Ives of Wedbush Securities commented, "The drivers' protests could be an issue, but Uber and Lyft can keep it under control."

This content was produced with the assistance of AI translation services.