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Survey Reveals Many On-Demand Workers Face Long Hours And Low Wages

SAN JOSE (CBS SF) -- Many workers for on-demand tech companies say they are getting a raw deal, often with low wages and long hours.

A new report called the 2015 1099 Economy Workforce Report takes the first broad look at work conditions for contractors across a wide variety of on-demand companies.

Ridesharing and delivery drivers have to pay all the costs for gas, maintenance and even insurance.

The companies require their drivers to have insurance and will deactivate those who don't.

However, 8 percent of ridesharing drivers and 16 percent of delivery company drivers said they do not have car insurance.

Uber spokeswoman Laura Zapata said, "It is an absolute requirement for all Uber partners to carry insurance and must have proof of insurance before becoming an Uber driver," adding that "we also make note of the insurance expiration date and notify the driver partner three weeks before they need to renew it. If the insurance is not renewed, the driver is suspended from accessing the Uber platform."

When the Mercury News asked Lyft if any drivers were found to be driving uninsured, Lyft had no comment.

Other key findings from the survey, completed by a Stanford bioinformatics master's candidate, found on average, over a fifth of the contractors are working more than 40 hours a week with an average pay of about $18 per hour.

About a quarter of workers over age 25 do not have health insurance and more than a quarter of them say this is their only job.

Of the 1,330 workers surveyed, a total of 897 completed the survey, while another 433 provided partial responses. It's also important to note that the claims are not representational since the respondents were recruited rather than randomly selected.


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