Waymo's self-driving cars will soon be on the Lyft app

Waymo's self-driving cars will soon be on the Lyft app

Lyft said its losses deepened as a result of $894 million in costs that included stock-based compensation and related tax expenses in connection with its initial public offering in late March.

Lyft Inc on Tuesday forecast that 2019 would be the peak year for losses after the ride service company lost $1.1 billion in its first quarter, just days ahead of rival Uber's IPO.

Uber has become a household name, and the most valuable privately held startup in the United States, after raising unprecedented amounts of venture capital.

To be sure, many drivers from Uber are still earning more than they could get in other blue-collar jobs in India.

However, Uber's own prospectus, recently filed with the US Securities and Exchange Commission, admits that being forced to reclassify drivers as employees or workers would "require us to fundamentally change our business model" and have a big impact on the firm's finances.

Drivers in 10 citiesacross the country are taking action on Wednesday to draw attention to what they say are decreasing wages for drivers and a distressing lack of job security - and some are calling on passengers to temporarily boycott the ride-hailing services, too. "Whether it's more consistent earnings, stronger insurance protections or fully funded four-year degrees for drivers or their families, we'll continue working to improve the experience for and with drivers".

A Lyft spokesperson said Lyft drivers' hourly earnings have increased over the last two years.

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"We are asking riders not to cross the picket lines and to respect the strike", said Drive United organizer Jeffrey Dugas.

Reports by The Verge have announced an oncoming strike organized by Uber and Lyft drivers.

Uber has not responded to FOX 5's request for comment but told The Washington Post that thousands of people come into work at Uber every day focused on how to make their lives better and they will continue working on ways to improve the experience for drivers.

FILE - This Tuesday, June 12, 2018, file photo shows the Uber app on a phone in NY. But that number is certainly in dispute: According to an analysis from the think tank Economic Policy Institute, the actual wage drivers take home is much less. They have also devised more complicated formulas for determining what riders pay and what drivers earn. Drivers are independent contractors, not employees, so they don't receive benefits like health insurance. "Uber is the worst actor in the gig economy".

"Uber and Lyft are unlikely to increase drivers' minimum wage to $28 simply because of the May 8 strike", Beebe said.

"The companies may offer to increase drivers' pay on a one-time bonus basis or in small increments, but remember, although Uber is a tech unicorn, it is still deep in red, losing over $1 billion in 2018", Beebe said. Lyft raked in more than $2 billion in its own IPO in March, only to see its stock fall almost 20% below its offering price amid concerns about its ability to make money - a challenge magnified by another loss of $1.1 billion during the first three months of the year.

Financial experts anticipate Uber will raise $9 billion when it goes public on Friday.

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