Denver council supports 'gig economy' drivers

Photo byPaul HanaokaonUnsplash

Drivers in the “gig economy” who work for rideshare platforms often face unfair struggles, Denver City Council members said Monday, so they issued a proclamation supporting them.

Council members Stacie Gilmore, Sarah Parady and Paul Kashmann sponsored the proclamation, which the council unanimously approved. According to the proclamation, there are more than 25,000 rideshare drivers in the Denver area. “Gig economy workers in Denver are often subject to poor workplace protections, misclassification, and minimum wage violations, putting them and their families in precarious economic positions,” the proclamation states. “Most gig economy workers in Denver are labeled as independent, (and) they are denied flexibility by algorithms that control their wages, prices, and opportunities.”

The proclamation emphasizes that Denver has been a national leader in wage protections. It praises Drivers Cooperative-Colorado and Colorado Independent Drivers United, or CIDU, saying the labor groups “are providing necessary and growing support for gig economy workers in Denver by bringing workers together to build power.”

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The Drivers Cooperative-Colorado is a rideshare app that eliminates the intermediary. According to the proclamation, the non-profit Rocky Mountain Employee Ownership Center, “which promotes employee-owned businesses to create a more fair and just economy,” incubated the app.

Photo byAbe Brennan, a rideshare driver, addresses the Denver City Council.

The proclamation states the platform is the first of its kind in the U.S. Drivers “will earn higher wages per rides, riders will also experience lower fares than industry average,” according to the proclamation. The platform also offers rides to the elderly and disabled, while other rideshare apps leave that decision to the drivers, and it is not visible on the apps who will accept disabled riders. Council member Chris Hinds, who uses a wheelchair, said during the council meeting that California and Mexico City require rideshare drivers to serve disabled people. He said it may take a minute to break down a wheelchair and put it in the trunk, but drivers should have the option of offering that service.

'Secret algorithms'

The proclamation says CIDU “believes that workers’ ability to earn a living wage shouldn’t be at the mercy of secret algorithms that are designed to maximize profits for app-based platforms.”

Parady said Denver leads the nation in organizing gig economy workers. She said CIDU started as just seven drivers. “This is a place that’s ripe for labor exploitation because you have companies that are monetizing the novelty of the model and claiming that exempts them from all sorts of regulations be those wages or environmental.”

Nobody on the phone

Gilmore said drivers often cannot reach a human at the apps. “We have companies that for all intents and purposes have cut human resources out of their business model. They deserve reliable customer service. Not to be treated as folks who don’t have employee rights.”

More than 2,000 people have joined the co-op, and more than 6,000 riders have downloaded the app, according to members of the union who addressed the council. Drivers keep 80% of the fares, they said.

“It’s just nice to see any governmental body get behind working people and those who labor on behalf of them,” said union organizer Abe Brennan.