SACRAMENTO – By a 4:1 margin, app-based rideshare drivers want to be independent contractors – not employees – according to a new survey released by The Rideshare Guy, an independent driver website that provides information about the rideshare industry. From the survey:
“Even though AB5 in California has gotten a TON of media attention, political support and retweets on Twitter, most drivers want to be independent contractors. In our 2019 survey, 66% of drivers said they wanted to be independent contractors vs 15.8% who wanted to be an employee. This number lines up with my anecdotal conversations and also makes a lot of sense when you think about the fact that most drivers are doing this part-time, so they often value the flexibility more than the pay.”
The survey, released Nov. 19, also polled the most important issue for drivers. Driver pay ranked high, along with flexibility. The Protect App-Based Drivers & Services Act addresses both flexibility and pay head-on.
- It protects the legal right of app-based, on-demand rideshare and delivery drivers to work as independent contractors.
- It provides drivers historic new benefits and protections, including a minimum earnings guarantee equal to 120 percent of the minimum wage plus $.30 per-mile toward expenses. Using this formula the minimum pay guarantee works out to approximately $21 per engaged hour in gross pay. This is the minimum drivers would earn and they will still have the potential to always earn more with no limit on how much they can earn.
- It provides a health care stipend that covers 82 percent of the cost of a Covered California Plan, or $367 per month to a driver on average. Drivers start earning this stipend at 15 hours per week and reach the full stipend at 25 hours per week. Drivers can earn multiple stipends from multiple companies.
- It provides auto and liability insurance and occupational accident coverage to cover on-the-job injuries – similar to workers compensation insurance.