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The Cost of Doing Business

Why lawmakers must hold the ride-hailing industry accountable as they undermine their workers and play by their own rules

 

The Cost of Doing Business: Why lawmakers must hold the ride-hailing industry accountable as they undermine their workers and play by their own rules, a new report by the Transportation Trades Department, AFL-CIO (TTD), explores how features that have driven explosive growth and popularity in the ride-hailing industry—relatively affordable and convenient service—are based on a business model that exploits workers and undermines the goals of public transportation.

The report finds the business model of companies like Uber, Lyft, and Via artificially drive down prices by classifying drivers as independent contractors, trapping them in low-wage, no-benefit positions, avoiding regulation, and relying on massive subsidies from private capital. Because those business practices have not translated into profit, ride-hailing companies are now seeking public funding to pad their losses.

Read The Cost of Doing Business now.

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