Rider Protections Ignored During Battle Over Ride-Share Tax

For anyone who denies the political power of a billion-dollar corporation, consider how Uber was able to persuade people that it was concerned about average workers.

Uber does not pay a minimum wage in PA. In Massachusetts, the state had to sue Uber to get the company to agree to pay a minimum wage. But the minimum wage the company says it pays is misleading. Uber and Lyft drivers have to pay for gas, maintenance, their own insurance, and repairs.

In Pennsylvania, Uber says its drivers’ stated earnings of $27.45 per hour are based on the median driver earnings in Philadelphia from 5/4/2026 to 6/1/2026. 

“For the avoidance of doubt, drivers are paid based on their completed trips, but not hourly,” states the company’s website.

This is before gas, personal insurance, repairs, and the costs of the car’s wear and tear. Uber never publishes what a driver would make per hour, after paying all those expenses. A realistic assessment, assuming the IRS cost-per-mile driven is $0.725 and considering the new gas prices, shows that many Uber drivers are taking money out of their cars, not being paid by Uber, very much like a “reverse mortgage” that takes money out of a home.

It’s not that Uber can’t afford to pay workers a fair salary. Uber’s revenues were $14.37 billion, an increase of $12 billion from last year. Each share of Uber stock, all $2,052,187,000 of them, made 71 cents last year.

Rather than share its profits with its drivers, Uber has fought unionization wherever it can. Uber doesn’t always win, even with the help of President Trump’s Justice Department, but it mostly does. Uber drivers are not unionized in PA. Uber returned the favor by donating $1 million to Trump’s inaugural fund.

Uber’s lobbyists, who are unnamed in the Philadelphia Inquirer’s stories, comment using the posting on its web page: “At a time when Philadelphians are already stretched thin due to rising housing costs and everyday expenses, the mayor is proposing to make your Uber rides less affordable. This new $1 tax would be passed directly onto you, the rider.” 

Unfortunately, it appears Uber is never asked why it would pass the tax on to Philadelphians “already stretched thin.” Couldn’t Uber take 1% of its $12 billion increase in revenue to help those it claims to care for? (No reporter disclosed if they or the Inquirer used Uber. Full disclosure: I refuse to, I ride SEPTA and on rare occasions use a taxi, where many of the drivers are worker-owners).

Uber raises rates when riders need the service the most, taking an ever-growing bite out of the very people it says it wants to protect. The more a working person needs Uber, the more Uber charges.

It’s called  “Surge Pricing.” Here’s Uber’s explanation: “There are times when so many people are requesting rides that there aren’t enough cars on the road to help take them all. Bad weather, rush hour, and special events, for instance, may cause unusually large numbers of people to want to request a ride with Uber all at the same time. . . in these cases of very high demand, prices may increase to help ensure that those who need a ride can get one.”

So, this summer, as thousands attend World Cup games in Philadelphia, Uber will raise the rates on those very people it said it was trying to protect. Uber will violate PA’s anti-Price Gouging Act, which states, “A price is unconscionably excessive when the amount charged represents a gross disparity between the price of the consumer goods or services and the price at which the consumer goods or services were sold or offered for sale within the chain of distribution in the usual course of business.”

Maryland — not the progressive body that Philadelphia is (as it had a Republican governor prior to 2023 ) — banned surge pricing. Pennsylvania State Representative Morgan Cephas has said she will introduce a bill in Harrisburg to outlaw surge pricing. As of now, neither the Mayor nor the City Council has urged its passing.

And as bad as charging “already stretched thin” Philadelphians extra because the World Cup and special events are in Philadelphia, it may not be as bad as what Uber does with the data it collects from every ride.

Uber claims “the data it constantly collects on both riders and drivers is ‘anonymized and aggregated.’” But it sells the data to aggregators, who combine data from different sources. Rideshare providers typically sell or share information with third parties or company partners who then use the data to enable personalized, targeted advertising through different mediums, including apps and websites. Recently, online privacy laws have been enacted to better protect consumers from excessive information sharing, but these regulations apply only to a limited number of U.S. states.

So, while many progressives responded to Uber’s request to fight the tax, it appears that, aside from State Rep. Morgan Cephas, no one is fighting to protect workers and consumers from Uber. It would have been nice for some elected official to get rider and worker protections, as Corporate Uber was being protected from being taxed.

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