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LAFCO survey: many ride‑hail and delivery workers earn low net pay, face safety and COVID‑19 risks

San Francisco Local Agency Formation Commission · May 15, 2020
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Summary

A representative survey presented to the San Francisco LAFCO found many ride‑hail and delivery workers rely on platform work for most or all of their income, show low median weekly earnings after expenses, face safety and health gaps and want PPE, predictable pay and benefits. LAFCO and students proposed certification, permitting and other policy steps.

A representative LAFCO‑commissioned survey of ride‑hail and delivery work in San Francisco found widespread economic precarity and safety shortfalls among platform workers and prompted a package of student and staff policy proposals presented to the commission on May 15.

Chris Benner of UC Santa Cruz told the commission the team recruited respondents through six platform apps (Uber, Lyft, DoorDash, Grubhub, Instacart, Shipt) and completed 643 representative surveys of work across the city. Key findings Benner highlighted include:

• Workforce composition: Benner said the workforce is "tremendously diverse," with roughly 29% Asian, 23% Hispanic/Latinx and 22% white respondents and 56% foreign‑born. • Hours and dependence: For 50% of respondents platform work accounted for 100% of last month’s income; 50% reported working 41 hours or more per week and over 70% worked more than 30 hours. • Earnings and expenses: Median weekly earnings before expenses were about $900 for ride‑hail and about $500 for delivery. After deducting either reported expenses or mileage at the IRS rate, net weekly earnings fell substantially — the mileage method produced estimates near $350/week for ride‑hail and just over $200/week for delivery. Using the broader mileage measure, Benner said as many as 21% estimated they earned $0 after expenses. • Safety and COVID response: Benner reported 43% of respondents said platform companies provided no COVID‑19 protections in April; many drivers purchased PPE themselves. He also said a large share of bikedelivery workers reported feeling unsafe due to parked cars in bike lanes and poor road conditions.

Students in a University of San Francisco graduate policy class presented complementary recommendations. Their proposals included a certification and public rating system for delivery companies (to surface compliance with health and labor measures), a permitting regime (administered by an existing agency such as the SFMTA or SFPUC) funded by company fees rather than workers, a health‑insurance surcharge to seed a supplemental fund, and incentives (rebates) to shift suitable deliveries to e‑bikes.

Brian Goble, LAFCO executive director, summarized staff recommendations that overlap with the students’ findings: prioritize enforcement of AB 5 and existing local labor laws (minimum wage, paid sick leave, health‑care contributions), secure cross‑platform data for continuous monitoring of hours and earnings, explore a worker resource center or ombuds program, and investigate a city‑run, worker‑owned ride‑hail/delivery cooperative.

Public commenters included drivers and advocates who urged LAFCO to forward the recommendations to the Board of Supervisors and to prioritize enforcement and immediate worker relief. Commissioners asked staff to prepare a sequencing plan identifying what could be done immediately and what requires additional legal or interagency work. Goble agreed to return with a refined plan and to share materials with supervisors.