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Workers Built the Platform Economy, But They’re Not Seeing Its Rewards
By classifying workers as contractors, platform companies avoid paying core employment obligations while retaining tight control over how the work is done.
May 29, 2025
Alejandro G. thought that driving full-time for Uber in Houston offered freedom—flexible hours, quick cash, and time to care for his young son. But that promise faded fast.
“There are hours when I make $20,” he told me. “And there are hours when I make $2.” As his pay dropped, he pawned his computer and camera, began rationing the insulin he takes to manage his diabetes—putting his health at risk—and started driving seven days a week, often late into the night, just to break even.
Alejandro, whose real name is withheld for his privacy, is one of millions of workers powering a billion-dollar labor model built on legal loopholes. Companies like Uber insist they are tech platforms, not employers, and that their workers are independent contractors. This sleight of hand allows them to sidestep minimum wage laws, paid sick leave, and other workplace protections, while shifting the financial risks and responsibilities of employment onto the workers. It also lets them avoid employer taxes, draining funds from public coffers.
If gig workers were properly classified, public companies would have to disclose pay data, showing just how far below the median these workers earn, and how high executive compensation soars above them.
A new Human Rights Watch report looks at seven major platform companies operating in the U.S.—Amazon Flex, DoorDash, Favor, Instacart, Lyft, Shipt, and Uber—and finds that their labor model violates international human rights standards. These companies promise flexibility and opportunity, but the reality for many workers is far more precarious. In a survey of 127 platform workers in Texas, we found that after subtracting expenses and benefits, the median hourly pay was just $5.12, including tips. This is nearly 30% below the federal minimum wage, and about 70% below a living wage in Texas.
Seventy-five percent of workers we surveyed said they had struggled to pay for housing in the past year. Thirty-five percent said they couldn’t cover a $400 emergency expense. Over a third had been in a work-related car accident. Many said they sold possessions, relied on food stamps, or borrowed from family and friends to get by. Their labor keeps the system running—but the system isn’t built to work for them.
By classifying workers as contractors, platform companies avoid paying core employment obligations while retaining tight control over how the work is done. The platforms often use algorithms and automated systems to assign jobs, set pay rates, monitor performance, and deactivate workers without warning. In our survey, 65 workers said they feared being cut off from a platform, and 40 had already experienced it. Nearly half were later cleared of wrongdoing.
Companies use incentives that feel like rewards but function more like traps. Uber, Lyft, and DoorDash dangle “quests,” “challenges,” and “surges” to push workers to stay on a shift for longer or hit quotas. These schemes lure workers into chasing bonuses that rarely reflect the true cost of the work. One Uber driver in Houston said, “They are like puppet masters. They psychologically manipulate you.”
Access to higher-paying gigs is also conditioned on behavior. Platforms use customer ratings and performance scores to shape who gets the best jobs. One Shipt worker in Michigan said her pay plummeted immediately after she received two four-star reviews, down from her usual five. Ratings are hard to challenge, and recovering from a low score can take weeks. Workers feel forced to accept every job and appease every customer, reinforcing a system that rewards compliance over fairness.
These aren’t the conditions of self-employment. They’re the conditions of control.
This labor model also drains public resources. In Texas alone, Human Rights Watch estimates that misclassification of platform workers in ride share, food delivery, and in-home services cost the state over $111 million in unemployment insurance contributions between 2020 and 2022. These are public funds that could have strengthened social protection or public services. Instead, they’re absorbed into corporate profits—a quiet transfer of public wealth into private hands.
In 2024, Uber reported $43.9 billion in revenue and nearly $10 billion in net income, calling the fourth quarter its “strongest ever.” DoorDash pulled in $10.72 billion, up 24% from the previous year. Combined, their market valuation exceeds $250 billion.
But workers are pushing back, and policymakers are starting to listen. From June 2 to 13, the 113th session of the International Labour Conference—the United Nations-backed forum where global labor standards are negotiated—will convene to debate a binding treaty on decent work in the platform economy. The message is clear: Workers are demanding rules that protect their rights.
The U.S. can start by updating employment classification standards and adopting clear criteria to determine whether a platform worker is truly independent. We also need greater transparency. If gig workers were properly classified, public companies would have to disclose pay data, showing just how far below the median these workers earn, and how high executive compensation soars above them.
This isn’t about rejecting technology. It’s about making sure new forms of work don’t replicate old forms of exploitation or create new ones, by hiding them behind an app.
Alejandro doesn’t need an algorithm to tell him when to work harder. He has a right to a wage he can live on, protections he can count on, and a system that doesn’t punish him for getting sick, injured, or speaking up.
He and millions like him built the platform economy. It’s time they shared more than the burden.
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Lyft, Uber Drivers Banned From Tennessee Airport After Caravan for Pro-Worker Bill
"Uber, Lyft, and Metro Nashville Airport Authority are engaging in an inappropriate and malicious alliance to destroy dozens of livelihoods," said the Tennessee Drivers Union.
Mar 03, 2025
A Tennessee union announced Monday that 34 Uber and Lyft drivers received messages "informing them that they had been permanently banned" from working at Nashville's airport after joining scores of workers for a peaceful caravan there last month to support a state bill that would impact the companies.
The Tennessee Drivers Union (TDU) said in a statement that some participants, "including those in the passenger's seat not driving," were banned from providing rides at Nashville International Airport following the February 14 action, during which "participating Uber and Lyft drivers had their apps turned off."
In a message to one Uber driver obtained by Common Dreams, the company said that "Nashville International Airport (BNA) notified us that you conducted a pickup on the arrivals level of the terminal. Please note that all pickups must occur in the Uber-designated zone."
"Due to the nature of the incident, the airport is restricting certain driver-partners from accepting rides or dropping passengers off at BNA permanently, pursuant to the terms of Uber's agreement with the airport," Uber continued. "Your account appeared on the list. For that reason, your account has been permanently blocked from operating at BNA. Contact the airport for more information."
A message to a Lyft driver similarly said that "it has been reported that you were conduct detrimental to the orderly operation of the airport. That being said, at the request of the airport, you are prohibited from operating on BNA airport property indefinitely."
"To prevent future suspensions, carefully review the BNA rules and regulations," Lyft added. "Please note, citations may be given if you operate on BNA property during your suspension, and you will be responsible for paying them."
Lyft and Uber have not responded to Common Dreams' requests for comment on the bans, which come as working people face high costs and a billionaire-led assault on the federal government.
TDU said Monday that "Uber, Lyft, and Metro Nashville Airport Authority are engaging in an inappropriate and malicious alliance to destroy dozens of livelihoods. The airport is one of the only opportunities for ride-share drivers to make barely above minimum wage."
"This is an attack against dozens of workers, their families, and their communities," the union continued, noting the millions of dollars in fees the airport gets from drivers and Metro Nashville Airport Authority CEO Doug Kreulen's $600,000 salary.
As Common Dreamsreported last year, TDU has sounded the alarm about working conditions for drivers at BNA. Union members kicked off Labor Day weekend in 2024 with a strike to draw attention to demands including a cap on the number of ride-share drivers in the area, an expansion of their airport lot, and clean, working bathrooms on-site.
TDU said Monday that "this retaliation isn't a mistake," arguing that "Uber and Lyft are threatened" by Tennessee House Bill 879/Senate Bill 818, introduced last month by state Rep. Rush Bricken (R-47) and Sen. Joey Hensley (R-28).
The bill text begins by highlighting that "Tennessee is the only state in the Southeast that allows out-of-state ride-hail drivers to operate within the state, while Tennessee ride-hail drivers may not work in surrounding states."
"Tennesseans who live and work in our communities, contributing directly to our local economy, struggle to compete with an oversaturated market of out-of-state drivers," the legislation explains, calling for "a basic licensing regime."
The bill would require ride-hail drivers operating in the state to have a "transportation network license," which would require a Tennessee driver's license, or proof of residency in DeSoto County, Mississippi, or Crittenden County, Arkansas.
Companies that allow drivers to provide rides without a Tennessee-issued transportation network license would be hit with a $1,000 penalty per violation and could ultimately be banned from operating in the state.
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Watchdogs Call Out Trump AG Pick Pam Bondi's Corporate Lobbying
One democracy advocate urged senators "to carefully scrutinize Bondi's lobbying record and ask what she will do when the interests of her lobbying clients again clash with the Department of Justice she now wants to lead."
Jan 08, 2025
When President-elect Donald Trump in mid-November decided to tap former Florida Attorney General Pam Bondi to succeed former Congressman Matt Gaetz as his pick for U.S. attorney general, details about Bondi's career, including her time as a corporate lobbyist, began to surface.
On Wednesday, two watchdog groups released reports that delve into Bondi's time as a lobbyist and say that their findings raise concerns about Bondi's fitness to serve as head of the Department of Justice.
The first report was published by the group Public Citizen and looks at federal lobbying disclosures and Foreign Agents Registration Act reports filed by Bondi and Ballard Partners, the lobbying outlet where Bondi worked as a registered federal lobbyist for the past five years. Ballard Partners also employed Susie Wiles, Trump's pick for White House chief of staff.
The other report, from the group Accountable.US, also looks at Bondi's time at Ballard Partners and reports that at least five of Bondi's major lobbying clients have "faced DOJ fines, investigations, or related scrutiny that could pose serious conflicts if she is confirmed as AG." The Public Citizen report also details DOJ scrutiny on some of these companies.
Jon Golinger, the author of the Public Citizen report, wrote in a statement Wednesday that "the U.S. attorney general should be the American people's lawyer—not a lobbyist for big corporations and foreign governments."
"As they evaluate this nomination, we urge senators to carefully scrutinize Bondi's lobbying record and ask what she will do when the interests of her lobbying clients again clash with the Department of Justice she now wants to lead," he added.
According to Public Citizen's report, Bondi was registered to lobby the federal government on behalf of 30 different clients—a list that included the government of Qatar, large corporations, and government contractors—between 2019 and 2024.
The report details that her corporate clients have included the car service Uber; the large private prison company the Geo Group; the waste management company Republic Services; the e-commerce giant Amazon.com; and others, according to the report.
The watchdog found that lobbying reports filed in 2020 reveal that Bondi's firm was paid $120,000 that year by Uber to lobby federal offices on "issues related to sharing economy, surface transportation measures, foreign regulation of data management, regulatory relief, and legislative measures for Covid-19." Offices lobbied included the White House, the U.S. Senate, the U.S. House of Representatives, the Department of Transportation, the Department of the Interior, the Department of Veterans Affairs, the Department of the Treasury, and the Small Business Administration.
Public Citizen reported that Bondi also retained two clients through 2024: the Florida Sheriffs Association and the Florida Sheriffs Risk Management Fund.
Both reports also detail that many of these companies have come under scrutiny from the agency that Bondi is tapped to lead.
Accountable.US highlights, for example, that in 2023 the DOJ imposed a $25 million civil penalty on Amazon to resolve allegations that its Alexa service illegally retained recordings of children's voices. Another former client, General Motors—who Bondi had as a client in 2020 and 2021—reached a settlement with the DOJ in 2023 to resolve the DOJ's determination that the company imposed a "discriminatory barrier" against lawful permanent residents in its hiring processes.
"Pam Bondi's career lobbying for corporate clients that had run-ins with the DOJ now poses potential conflicts of interest and serious questions whether she will put her personal interests ahead of the American people," said Accountable.US executive director Tony Carrk in a statement Wednesday. "People are tired of this same, old insider game."
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