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Riders Bear The Risk: Gavin Newsom Lets Uber & Lyft Slash Insurance 94% In Exchange For Weak Unions

Sep 01 2025

California Governor Gavin Newsom has struck a deal with Uber and Lyft that (1) will unionize drivers, and (2) deliver big cost cuts to the ridesharing platforms. But it’s the unions themselves that will benefit most; helpful to the Governor as he prepares for a presidential run.

Uber and Lyft will see a 70% – 94% reduction in how much insurance they have to carry, and while unions will be able to collect dues they won’t get much bargaining leverage.

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Uber’s Dark Descent: How Abandoning Innovation Hurt Drivers and Gouges Riders

Dec 01 2024

Uber drivers frequently protest their declining pay and it strikes me that there was an uproar over how Uber treated its drivers and that was part of pushing out their founder CEO, but things have actually gotten worse for drivers since then. For instance, many work 12 hour days earning less than $100 per day. Uber used to take 20% of the fare, now drivers report giving up 60%. Back then they might earn $400 per day. Pre-summer 2017, drivers had several complaints. Drivers didn’t have any choice in trips. They’d find out once they accepted the ride (and cancelling on riders once they learned the destination could get them kicked off of the platform). This was a solution to a real problem with taxis. In New York City you stand there and hail a…

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