Big Take cover image

Big Take

How Uber and Lyft Used ‘Lockouts’ to Deny NYC Drivers Millions

Oct 11, 2024
Natalie Lung, a Bloomberg tech reporter, dives into the shocking practices of Uber and Lyft that have left NYC drivers in dire straits. She discusses how these companies implemented lockouts to slash their payroll costs, impacting drivers' earnings and autonomy. Through an extensive investigation, Lung reveals personal stories collected from hundreds of drivers, showcasing the emotional and financial toll of these restrictions—especially during peak demand times. The conversation sheds light on the pressing need for fair compensation in the gig economy.
16:36

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The implementation of driver lockouts by Uber and Lyft aimed to save costs by managing driver supply against rider demand, ultimately harming drivers financially.
  • New York City's regulatory efforts to revise minimum wage rules for gig workers emerge from the negative impacts of lockouts, highlighting the need for fair compensation.

Deep dives

Drivers' Lockouts and Their Impacts

Uber and Lyft implemented lockouts for drivers in response to an imbalance between driver supply and rider demand, causing frustration and financial strain for many. Drivers like Mohamed experienced repeated lockouts, making it unpredictable when they could work and leading to significant income loss. This situation has pushed some drivers into debt, with many working longer hours and even foregoing basic needs, such as meals and breaks, to maximize their time on the app. The lockouts not only affected drivers but also resulted in higher ride prices for consumers in various areas, as companies sought to manage their operational costs.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode