use case

Cooperative management of a ridehail app by The Drivers Cooperative in NYC

Currently, the gig economy is being exploited with workers barely able to make a living while Silicon Valley executives and investors reap enormous profits. Tech platforms can have alternative business and governance models that are more just and fair to the communities they serve and the workers who bring them value.

source of visual

USA/Canada, The Drivers Cooperative, Offline+Online
- Where did this use case occur?
December 2020-ongoing
- When did this use case occur?
Independent Driver’s Guild, Shared Capital Cooperative, Start.coop, Ioby, WeFunder, Local Enterprise Assistance Fund, Lower East Side People's Credit Union, Emergent Fund, Workers lab, Capital Impact Partners
- Who were some of the key collaborators
2,500 Drivers
- How many people participated?
Cooperative, Municipality, Urban
- What are some keywords?

What was the problem?

Mainstream ride-hailing apps such as Uber and Lyft run on exploited labor of gig workers. After platform fees of 25-40%, drivers make less than minimum wage and get no benefits, basic employment rights, nor support in vehicle purchases, insurance, or maintenance. In New York City, 91% of the drivers are immigrants and most live at or below poverty level, which also perpetuates the city’s deep racial wealth gap.

How does the community approach the problem?

The Drivers Cooperative is a driver-owned ridehailing cooperative in New York City that owns and manages their own application, Co-op Ride [1]. The idea came from a group of drivers who realized the need for worker-ownership after a workshop they held with the Independent Driver’s Guild (IDG) in May 2019. After that, the drivers, with help from labor organizers and tech workers came together to build the app.

Process

Cooperative Management , Crowdfunding

Technique

Co-op Ride drivers earn 8 to 10% more on each trip than on Uber and Lyft because it takes a smaller commission (only 15%). Plus, all profits go back to the drivers in the form of annual dividends based on how much labor they contributed. Each driver is also a member of the co-op who owns one share of the company with one vote toward leadership and business decisions. The co-op also has an elected driver board with control over issues that affect drivers most in their day-to-day work, including adjudicating customer complaints. [2]

Tool

No Specified Tools

What were the results?

• The app has attracted more than 3,000 drivers
• Rides are also 5% cheaper for passengers, even with tips included in the ride price
• TDC is charging drivers a commission of 15% for using the app, compared to the average 25–40% other app-based companies collect. [3]
• The drivers earn between $35 to $50 an hour, significantly above the city’s Taxi and Limousine Commission’s (TLC) minimum wage of $27, according to Orlando. [4]

In Our Opinions

How participatory was it?

Empower

This use case demonstrates a way to move power into the hands of workers, giving them ownership and control over the companies they build and constitute together.

What makes this Use Case unique?