• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
TechUber Technologies

Gig workers sound off on the Uber-Postmates deal: ‘It’s like an embezzler buying a bank’

Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
July 7, 2020, 4:00 PM ET
Add Fortune on Google for similar content.

As investors cheered on Uber’s agreement to buy Postmates for $2.65 billion on Monday, another crowd reacted differently: the gig workers who underpin the ride-hailing and food-delivery business.

Edan Alva, a driver who opted for Lyft over Uber during the latter’s years of scandal, called the deal “unethical” and “immoral” because, he said, it will amplify Uber’s ability to suppress worker pay. Drivers and food couriers receive a share of the ride and meal-order fees charged by the app-based companies, which also take a hefty cut.

“It’s like if a large-scale embezzler were allowed to buy a bank,” said Alva, who is also an organizer for Gig Workers Rising, a labor advocacy group.

Alva said he makes roughly $20 to $22 hourly on average ferrying passengers around the Bay Area. But after expenses like gas and unexpected car maintenance costs—he had five flat tires in the past year alone—his take is “definitely well below $15 per hour,” and “possibly closer to the $10 point,” he estimates.

Alva criticized ride-hailing firms’ “predatory tactics” that he said are designed to minimize people’s compensation, including by recognizing their most essential workers, drivers and couriers, as contractors rather than as full-time employees with benefits. Uber and fellow gig-economy companies are currently fighting a law in California that could force them to reclassify their workers as full-time employees.

The companies are shelling out tens of millions of dollars to promote an alternate state ballot initiative that would exempt them from the rule change.

Fighting atop the food pyramid

Ride-hailing and food-delivery businesses are locked in a fierce battle for market share even as the lockdown measures imposed by authorities to combat the global coronavirus pandemic cause their core operations to flounder.

Luis Vasquez, a DoorDash courier who used to pick up passengers for Uber and Lyft before switching to meal delivery amid the onset of COVID-19, said he is concerned about the industry consolidation. “I don’t think it’s gonna be fair or good for the drivers,” he said of the Uber-Postmates deal. “Uber is doing this because they want to take over.”

A combined Uber-Postmates would claim 37% of food delivery market share in the U.S., according to payments-tracker Edison Trends. That would make it the runner-up to the current leader, DoorDash, which has a 44% market share.

Competition continues to heighten, despite the pandemic. DoorDash just last month raised $400 million at a nearly $16 billion valuation. Grubhub, which last month agreed to sell to Netherlands’ Just Eat Takeaway shortly after a rumored deal with Uber fell through, has 17% of the market.

Margins have slimmed as a narrowing band of rivals compete to offer the cheapest, most convenient service.

Vasquez, a single parent, lamented the continual reduction in pay his assignments provide. “When I started it was really good,” he said of his early earnings five years ago.

“Now it’s crap,” Vasquez said.

Robbing Peter to feed Paul

Some drivers blasted Uber for spending billions on Postmates while paying workers a pittance.

Nicole Moore, a part-time driver for Lyft, described Uber’s actions as hypocritical. “They don’t have the money to pay people basic labor standards, but they have the money to buy a whole new company?” she said.

“To me, this is a slap in the face,” said Moore, who is also an organizer for Rideshare Drivers United, another worker advocacy group that is agitating to unionize ride-hailing drivers.

Peter Young, a courier for Postmates, said he sees no upside to the Uber-Postmates deal. “I don’t really see anything getting better for workers after this. I don’t expect pay to rise, or job security to improve, or anything,” he wrote in an email.

Further, Young said, he fears the deal could affect people’s employment status, including his own. After two years transporting riders for Uber, the company “deactivated” him, effectively booting him from its platform, after he got into a “fender-bender” accident last year, he said.

Young said he worries that Postmates could ban him, too, as it gets absorbed by Uber. Though Postmates has assured couriers the acquisition won’t have an immediate effect on their ability to work, that promise, he said, is “only as strong as their word.”

“And their word generally means nothing these days,” Young added.

Ride sharing is caring

Some people looked more optimistically on the deal.

Michael Gumora, a former Uber and Lyft driver who now runs Rideshare Report, a blog about the ride-sharing business, gave an opposing view. He said he thinks the consolidation will be “good for drivers actually” in the long term, because it will force more workers together, making it easier for them “to get together for the purposes of collective bargaining.”

But, Gumora noted, Uber is “not doing [the deal] for the benefit of the drivers at all.”

Uber contends its acquisition of Postmates will offer advantages to their gig workers. A spokesperson wrote to Fortune in an email that with the combined network of restaurants, orders, and opportunities for delivery fulfillment, “we’ll be able to offer even stronger and more predictable earning opportunities to delivery people across meals, grocery, and more.”

Most people Fortune interviewed were skeptical of any possible benefits for gig workers, however. Paul Oh, a Postmates courier who is the administrator of an unofficial Facebook group for his peers, said he sees only “a very slim chance it is a positive thing for couriers.”

“Hopefully, Uber approaches this like Coca-Cola,” Oh said, meaning that Uber ends up offering so many options to consumers—on-demand apps versus soft drinks, in this case—that it basically competes against itself.

Being a courier is like participating in an uncertain economic “game,” Oh said. Fewer potential employers means fewer ways “to play your city,” which means less potential reward.

Losing an appetite, winning the war

If Uber grants Postmates some level of separation and autonomy, allowing drivers, merchants, and customers to switch between apps based on their preferences, it could allow for more choice and flexibility. But the logic for the deal no doubt derives from savings presented by consolidation and economies of scale.

In statement announcing the deal, Uber said it “intends to keep the consumer-facing Postmates app running separately” even after the transaction closes, slated for the first quarter of next year. The company said it also plans to combine back-end operations and cut $200 million in overhead costs.

Wilfred Chan, a freelance writer who supplements his income by delivering meals for on-demand apps like Postmates, summed up his gig-worker peers’ anxieties. The move puts gig workers increasingly at the mercy of a few ultrapowerful players.

“The problem is that it means less choice for workers. It means that these platforms are growing bigger and harder to fight,” Chan said. “As Uber’s hegemony grows, they’re going to have even more leverage against workers and be able to exploit us even more harshly.”

About the Author
Robert Hackett
By Robert Hackett
Instagram iconLinkedIn iconTwitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Current price of Ethereum for July 1, 2026
Personal FinanceEthereum
Current price of Ethereum for July 1, 2026
By Joseph HostetlerJuly 1, 2026
45 minutes ago
In this photo illustration, a Cisco logo is displayed on a smartphone with Artificial Intellingence (AI) symbols in the background.
AICFO Daily
Cisco is rolling out AI agents to every single one of its 90,000 employees
By Sheryl EstradaJuly 1, 2026
1 hour ago
senate
CommentaryCongress
One rare bipartisan AI bill is moving through Congress. Here’s why it deserves to pass
By Neil Björkman and Betsy BrewerJuly 1, 2026
3 hours ago
I know how Gen Z can survive the ‘jobpocalypse’ because I built an AI company — in 2015
CommentaryCareers
I know how Gen Z can survive the ‘jobpocalypse’ because I built an AI company — in 2015
By Jeremy FainJuly 1, 2026
3 hours ago
OCBC rolls out its ‘avatar banking’ platform with ‘Wendy’ and ‘Wayne,’ two virtual financial advisors, as banks integrate AI into wealth management
AsiaSingapore
OCBC rolls out its ‘avatar banking’ platform with ‘Wendy’ and ‘Wayne,’ two virtual financial advisors, as banks integrate AI into wealth management
By Angelica AngJuly 1, 2026
3 hours ago
Photo: Rocks balancing on driftwood, sea in background.
AIMarkets
Leveraged stock bets are ‘very concentrated in the AI ecosystem,’ Goldman Sachs warns
By Jim EdwardsJuly 1, 2026
4 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
6 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
4 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
AI
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
By Catherina GioinoJune 29, 2026
2 days ago
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
Commentary
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
By Marc AndersenJune 30, 2026
1 day ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.