A report released on November 9, by Colorado Jobs with Justice reveals shocking statistics about app-based gig workers in Denver who make, on average, just $5.49 an hour after expenses: 35% less than Denver’s minimum wage. The report also finds app-based workers often face excessive rates of violence and discrimination in the workplace.
Colorado Jobs with Justice conducted this survey of Denver’s app-based workers in order to provide additional transparency and data around how the gig economy operates in Colorado. The report focuses on three gig platforms: Uber, Lyft and DoorDash, and consists of a voluntary survey of more than 360 gig workers across nine geographical zones in the city of Denver from January to February of 2022. Data was also collected on 6,079 trips on several ride-hailing and food delivery apps between November 2021 and January 2022 through the Driver’s Seat Collective app, which tracks location data and times drivers are working or waiting for rides or deliveries.
Key findings included:
- Across all three gig platforms studied, drivers reported wages that amount to $5.49/hr after expenses, well below Denver’s minimum wage of $15.87.
- Almost one-quarter of gig worker income comes from optional tipping.
- The majority of gig drivers are workers of color.
- Over one-fifth of drivers (22%) reported facing violence or have been threatened with violence while on the job; a similar number (20%) reported being discriminated against on the basis of their identity.
- Most app-workers in Denver are working full-time, and gig work is their primary source of income.
- 31% of drivers reported having no health insurance.
- Most drivers support another person with their gig income.
“What our survey and study ultimately found is that the reality for Denver gig workers is similar to others around the country, and gig companies are not living up to their promises,” said Sofia Solano Organizing Director at Colorado Jobs With Justice. “Drivers are majority workers of color who earn low wages with significant expenses, lack access to important benefits, and face severe safety and workplace concerns that other workers don’t. We must work as a community to ensure all workers can support their families, have flexibility, and feel safe at work without giving up rights and benefits. Left unchecked and unregulated, gig companies will continue to shift the cost of doing business onto their workers and consumers – taking money out of our communities and putting it into corporate pockets.”
“Drivers are majority workers of color who earn low wages with significant expenses, lack access to important benefits, and face severe safety and workplace concerns that other workers don’t.”
Sofia Solano Organizing Director at Colorado Jobs With Justice
As app-based companies continue to disrupt traditional business models across different industries, all of these companies have one thing in common; they classify their workers’ as independent contractors. This means that workers are not covered by employment standards and protections, including minimum wage, overtime, health and safety, or protections from workplace harassment and discrimination. This also means app-based gig workers are responsible for paying for the cost of business expenses–from gas to car maintenance–and are not provided with standard benefits like workers compensation or health care.
Read the full report here.
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