Skip to main content
  1. Home
  2. Cars
  3. Mobile
  4. News

Documents: Uber drivers in two states would have made $730M more as employees

Add as a preferred source on Google

In Uber’s ongoing pursuit of a settlement with its drivers, the extent of the costs the ride-sharing company would have borne had the drivers been employees rather than contractors has just been clarified. Court documents unsealed this week show that drivers in California and Massachusetts would have received an additional $730 million in expense reimbursements since 2009, according to Reuters.

Neither Uber, nor its closest competitor, Lyft, currently hire their drivers as employees, but rather as independent contractors. The drivers want to be considered employees to be eligible for gas and maintenance reimbursement based on mileage, which they otherwise pay themselves.

Recommended Videos

If you add the 20 percent tips the drivers would have made, based on Uber’s data on revenues in the two states, and the government-allowed mileage rate, the drivers would have been paid an additional $852 million in all. Uber uses a different rate for mileage reimbursements, and based on that difference, states that the total with tips would have been $429 million.

Last month, Uber offered a $100 million settlement to its drivers in California. The settlement offer has not yet been accepted by the court. In that settlement, drivers would remain contractors. The driver mileage and Uber commission amounts (on which the tip amounts are based) had been redacted in the original settlement. In the process of considering the settlement, a judge in federal court in San Francisco ordered the figures disclosed in order to assess the fairness of the offer. The new numbers show quite a gap between the settlement offer and potential reimbursements, whether calculated with Uber’s mileage rate or the government rate.

Uber’s settlement offer must be approved by the courts. The final question of whether the company’s drivers are employees or contractors will be decided by U.S. regulators.

Bruce Brown
Bruce Brown Contributing Editor   As a Contributing Editor to the Auto teams at Digital Trends and TheManual.com, Bruce…
This tiny sensor could help self-driving cars and robots see better in the dark
Penn State researchers have developed a light-adaptive photomemristor modeled on the human eye that achieves over 95% visual accuracy in shifting light conditions.
Waymo Jaguar I-PACE sensors close up

Penn State researchers have developed a light-adaptive sensor component that could make autonomous vehicle cameras and robots far more reliable in shifting lighting conditions. The work, published Monday in Nature Communications, takes direct cues from how the human eye adjusts between bright and dark environments.

Biology as a blueprint

Read more
Rivian R2 first drive: A mid-sized EV game-changer punching above its budget
Smart engineering meets real-world performance in a surprisingly premium $50K electric SUV
Rivian R2 First Drive Impressions

Rivian has officially launched the R2, a smaller, more affordable two-row electric SUV. Despite the lower price point, the company does not seem to have cut any corners on the new vehicle. Instead, many of the savings seem to have been achieved through more efficient engineering.

Examples of that efficiency can be seen in things like the vehicle’s wiring, which has ditched around two miles of cable when compared to the R1. A lot of the vehicle’s systems and chipsets have been compacted and condensed too.

Read more
Rivian R2 SUV deliveries have begun, just not for the version most buyers may want
The budget-friendly R2 is not here yet
Rivian R2 in Catalina Blue.

As promised, Rivian has started deliveries of its R2 electric SUV. The first version reaching buyers is the R2 Performance with Launch Package, which starts at $57,990 before fees.

That model gives early R2 customers the most powerful version in the confirmed lineup. It comes with dual-motor all-wheel drive, 656 horsepower, 609 lb-ft of torque, and an EPA-estimated range of up to 330 miles. Rivian claims it can go from 0 to 60 mph in 3.6 seconds.

Read more