Seattle rideshare fees could spike under latest council proposal

The Seattle rideshare industry could take a hit if the city council pushes forward its latest proposal. And that means drivers’ wallets could, too.

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“We are told today that City Council President Bruce Harrell is going to introduce a resolution that would raise the per-mile rates for rideshares,” Uber’s regional public affairs manager Caleb Weaver told KTTH’s Jason Rantz. “It would nearly double those rates to $2.40 a mile. That’s going to have a significant impact on the riders in Seattle. It’s going to price a lot of people out. Particularly people who rely on the affordability of Uber and the ability to use Uber pool. This proposal could take that away.”

Seattle council members are considering the move to regulate rideshare fares in a similar manner as taxis. Both Uber and Lyft have a base fare of $1.35 in Seattle. The council could push that higher.

Some argue that drivers are not paid well enough. Whether or not that’s true depends on which drivers you talk with. Some report earning as high as $30 an hour. Uber ran a study and reports that the average driver earns about $19-21 per hour before expenses. The Teamsters say that rideshare drivers often earn less than minimum wage.

In any case, Weaver argues that the council’s approach is an unenlightened view of how rideshares work. Drivers’ earning potential is based on when and how often they choose to drive. Unlike taxis, rideshare drivers are in control of their schedules and service. City officials, however, haven’t heard such facts from people like Weaver.

“Right now, the only people the city council are hearing from are a small group of drivers working with the Teamsters and the Teamsters themselves,” Weaver said. “It’s going to take the city council hearing from the 800,000 riders in Seattle to know this is bad policy.”

“I do know that the Teamsters have been working for years to push rideshare drivers off the road, and push companies like Uber out of Seattle,” he said. “If you look back, they supported a cap of 150 drivers. They sued to kick us out of town. They were behind the collective bargaining ordinance passed in 2015. This is another step by the Teamsters to force us off the road and out of town.”

The 2015 ordinance that allows rideshare drivers to join a union is still locked up in court battles.

Seattle rideshare voices

The issue came to light last week at a city council committee meeting. Seattle rideshare companies like Uber and Lyft were not notified that such an issue was to be discussed. Nothing was on the agenda or announced in advance. Somehow, however, the Teamsters were well aware of it.

“Even worse that the fact that there wasn’t notice to the rideshare companies, there are a whole lot of drivers who know the facts and are very concerned about what the city council might do that is going to impact their business,” Weaver said. “And they weren’t notified.”

“So the only people who spoke were two paid representatives from the Teamsters and the three drivers they brought with them,” he said. “No other voices, even though there are other organizations out there with thousands of drivers.”

The city-level rate regulations have not been done anywhere else in the country, Weaver notes. He worries it could spread to other cities where the union represents taxi drivers.

Weaver urges riders of Uber and Lyft to do a couple things:

• Sign an online petition in opposition of the council’s proposed action.
• Contact their elected officials in Seattle to voice their opposition to any rate hikes, or policies that treat rideshares like taxis.

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