Lia Russell: The Silicon Valley Economy Is Here. And It’s a Nightmare. (The New Republic)
Low pay, soaring rents, and cities littered with e-scooters. Welcome to the future.
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But what is less widely acknowledged is how the gig economy interacts with other trends in California and forces unleashed by Silicon Valley—rising housing costs, choked infrastructure—to make life hell for those who live at or near the epicenter of America’s technology industry. Together, they constitute a nightmare vision of what the world would look like if it were run by our digital overlords, as they sit atop a growing underclass that does their shopping and drives their cars—all while barely able to make ends meet.
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When Uber and Lyft announced they would guarantee California drivers a $15.60 minimum wage as an alternative to a new law aimed at curtailing gig companies’ misclassification of workers, Chair Ken Jacobs of U.C. Berkeley’s Labor Center found that the pledge was largely an empty one. Once you take into account drivers’ expenses and unpaid time between rides, their true gross wage would be $5.64 per hour. California’s state minimum wage is $12.00 an hour—far more than what rideshare companies were paying after expenses.
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There’s also evidence that Lyft and Uber, the two most popular ridesharing companies, contribute to a decline in public transit ridership. City governments thus have less incentive to invest in more infrastructure, creating still more negative repercussions for poorer communities and communities of color. In November, voters in San Francisco elected to levy a 1.5 percent tax on rideshares, in a bid to incentivize riders to consider public transit.
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The companies say that e-scooters are a “greener” form of transit than cars, but the evidence is underwhelming. One study published in August in an environmental journal, Environmental Research Letters, posited that whatever emissions electric scooters saved were offset by the greenhouse gas that gig workers expended chasing after scooters to perform maintenance and charging duties. The companies also say that e-scooters encourage a more diverse ridership, but San Francisco authorities reportedly found that e-scooter ridership tended to skew male, wealthy, and Caucasian.