The Drivers Cooperative is helping drivers escape the gig economy. But it needs to overcome major obstacles before it can compete with Uber and Lyft.
JOHANNES EISELE/AFP via Getty ImagesThe Drivers Cooperative is a worker-owned alternative to Uber and Lyft based in New York City.
Since launching, the app has enlisted nearly 5,000 drivers, received more than 40,000 downloads in its first two months, and is bringing in a healthy $400,000 a month in revenue, Forman said. Since it started operating, more than half a year ago, drivers say the co-op has offered much-needed release from the often-predatory practices of its gig-economy competitors as a worker-led alternative to Uber and Lyft, but it still faces major obstacles in its quest to compete with ride-hailing giants.
In comparison, the co-op takes a 15% cut, and drivers are set to share in the profits once it becomes profitable. Uber and Lyft came to dominate the ride-hailing industry, often at the expense of its drivers, whom the company classifies as independent contractors. It's not surprising that gig workers are turning to cooperatives, and it"may not just be a pandemic phenomenon," said Erin Hatton, an associate professor of sociology for the University at Buffalo who researches the gig economy.
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