[By Kia Kokalitcheva]
Uber released more details about how it will compensate drivers affected by COVID-19, which will be based on their average daily earnings over the last six months.
Why it matters: Ride-hailing and delivery drivers are among the most vulnerable as the virus spreads, both because of the very social nature of their jobs and because they don’t qualify for sick leave as independent contractors.
- The driver must have completed one trip in the 30 days before March 6 and be diagnosed with COVID-19, be placed in quarantine, asked to self-isolate by a health authority, or have their account restricted because Uber was notified of a diagnosis or exposure.
- Uber will use the average daily rate a driver has earned in the last six months, or since their first trip if they signed up more recently. Rates will vary per country.
- For example, a San Francisco driver who earned on average $28.57 per day will get up to $400, while one who earned $121.42 per day will get up to $1,700.
- Drivers will have 30 days since diagnosis or quarantine date to file a claim online and will be eligible for up to 14 days of compensation.
- This will not apply in the case of a citywide shutdown of the service.
Lyft, which also announced it will compensate drivers diagnosed or quarantined, will base the amount on their earnings over the previous four weeks, though it hasn’t released more details.
The bottom line: Neither company’s approach is perfect, and a lot of edge cases could lead to disappointing payouts for drivers, but the current extenuating circumstances were unlikely to be anticipated by any gig economy company.