Uber and Lyft drivers report the new Massachusetts minimum wage is declining pay

By Addison Brewer-Hay

Despite a raised minimum wage some drivers say that the new number appears to be used as a cap on overall profit. 

A new Massachusetts proposition raising the minimum wage to $32.50 an hour for drivers has brought payment issues to interviewed service drivers. Rafael, an employee for Uber and Lyft, shared that he didn’t mind working hard. His dedication to his job even gained him the nickname “ironman” from another driver.

However, due to the increased minimum wage, Rafael said he has to put in 90 hours a week to reach his goal of $3,000 a week – an achievement that took him 10 less hours before. “It’s getting worse and worse”, Rafeal said, “before it was much better.” 

And he isn’t alone. Despite the increased wage seeming as an opportunity to produce more of a profit, several drivers have shared that it has been doing the opposite. While it was supposed to bring better stability, it now seems to be hindering the driver’s ability to make money above the $32.50 an hour. 

Previously, drivers reported the ability to make $40 to $50 dollars prior to the new Massachusetts minimum. “Right now, the situation for the money, it’s very bad,” said Syed Hussain, another service driver from Westborough. Hussain said that due to low rates certain rides aren’t worth being accepted, as trips to and from Boston Logan Airport can make the drivers only $20. 

Currently, data tracking these price fluctuations is minimal. However, drivers say that the declining profit could be connected to more low-paying rides and less surge pricing which is thought to boost earnings by 30%. Some have also reported that rising employment rates could also be responsible for the drop in earnings. 

But they also suspect that AI algorithms could be the source of the problem as critics question if these platforms know the lowest amount that drivers will accept for a ride.

“The system is constantly adjusting in order to let the house win,” said David Weil, a Brandeis University professor who ran the Department of Labor’s wage and hour division in the Obama administration. Weil got an inside look at Uber and Lyft operations when he worked as an expert in the lawsuits resulting in the Massachusetts minimum wage deal. 

With AI in the mix, some question how much control drivers may have over their pay and the ongoing struggle to work over hours.