The Rise of Driver-Owned Cooperatives: A New Era for Gig Workers
The gig economy, dominated by platforms like Uber and Lyft, has long been criticized for its treatment of drivers, who often face dwindling earnings, lack of transparency, and limited control over their work. However, a growing number of drivers are taking matters into their own hands by forming cooperatives—member-owned organizations that aim to give drivers more autonomy, better pay, and a greater voice in how their work is managed. These cooperatives represent a significant shift in the way gig workers are approaching their jobs, offering a more equitable alternative to the traditional app-based model.
Frustrations with Uber and Lyft Spark the Co-op Movement
For years, Uber and Lyft drivers have struggled with declining earnings, unpredictable working conditions, and a lack of recourse when issues arise. Many report that it has become increasingly difficult to make a decent living on these platforms, as companies continue to adjust their algorithms and policies in ways that often disadvantage drivers. Lee Sperry, a San Diego-based driver and member of the advocacy group San Diego Drivers United, has been at the forefront of this movement. Sperry and hundreds of other drivers in his city are exploring the possibility of forming a cooperative, which they believe could address many of the frustrations they face. "The co-op would be very different in the way it operates," Sperry explained. "We’d set up our own app, elect leaders to manage it, and create transparent policies around issues like deactivating drivers."
How Driver-Owned Cooperatives Work
The cooperative model being explored by drivers like Sperry is rooted in the idea of collective ownership and decision-making. Instead of being controlled by a corporation, the co-op would be run by its members—drivers who would have a say in everything from pricing and payment structures to hiring practices and disciplinary policies. In cities where driver co-ops already exist, such as New York and Denver, the results have been promising. For example, the Drivers Cooperative in New York City, which launched in 2021, allows drivers to retain a larger share of the fares they earn. Similarly, the Drivers Cooperative Colorado, which began operating in September, guarantees drivers 80% of each fare, compared to the less than 50% they often receive on platforms like Uber and Lyft. These co-ops also prioritize transparency and fairness, with clear guidelines for how drivers are hired, managed, and disciplined.
A Better Deal for Drivers
One of the most significant advantages of the cooperative model is the potential for higher earnings. Phred Riggs, a driver for the Colorado co-op, shared his experience of how the same trip that once earned him $35 on Uber now pays just $16. Through the co-op’s set prices, which do not surge based on demand, Riggs can earn $33.60 for the same route—a substantial improvement. This difference is not unique to Riggs; many drivers have reported similar experiences, with the co-op’s model offering a more stable and predictable income. Additionally, the cooperative structure allows drivers to have a stake in the organization itself, giving them a sense of ownership and control over their work.
Greater Transparency and Accountability
Another key benefit of the cooperative model is its emphasis on transparency and accountability. Unlike Uber and Lyft, which are often criticized for their opaque policies and lack of communication with drivers, co-ops like the one in Colorado have implemented systems to ensure fairness and due process. For instance, the Colorado co-op requires drivers to undergo background checks and attend orientation sessions, but it also provides a clear mechanism for addressing disputes or issues that may arise during a ride. The co-op uses dash cams to provide evidence in case of conflicts and has a committee to review cases and make decisions. This level of oversight and accountability is a stark contrast to the often one-sided policies of major gig platforms, where drivers can be deactivated without explanation or recourse.
The Future of Gig Work: Driver-Led Solutions
The rise of driver-owned cooperatives is not just a response to the challenges of working for Uber and Lyft—it represents a broader shift in how gig workers are approaching their jobs. By banding together and creating their own organizations, drivers are taking control of their destiny and creating a more sustainable and equitable model for gig work. As cooperatives like those in New York and Colorado continue to grow and succeed, they may serve as a blueprint for drivers in other cities who are also looking for alternatives to the traditional gig economy. While there are still obstacles to overcome, the cooperative model offers a promising vision of a future where gig workers are not just independent contractors but active participants in shaping the platforms they rely on.
