- Free Consultations / No Fees Until We Win
- (213) 927-3700
Personal Injury Firm
Uber’s chief executive reportedly delivered food for their food delivery division UberEats and made $106.7 in one day while working for 3.5 hours, representing a mere 0.3% of his actual daily salary. In 2020, Dara Khosrowshahi made just over $12 million, or approximately $33,333 a day as the ridehailing giant’s CEO.
Khosrowshahi spent part of his weekend delivering food in San Francisco on his bike, reportedly posting a selfie sporting a helmet and a bright green backpack to transport the food on his Twitter account. In his tweets, he said he completed 10 trips while being online for 3.5 hours, netting him $106.71 with tips, putting his hourly pay at around $30. UberEats workers are paid per delivery as well as per mile.
Considering his compensation totaled just over $12 million in 2020, including stock options, that’s equivalent to about 340 times his pay as a food delivery worker. Another screenshot breaking down his trips on the same shift showed $106.71 of earnings over the course of six hours, putting his hourly pay at around $19.
However, some Twitter users took issue with what Khosrowshahi disclosed, saying the amount earned and the hours worked didn’t add up. A company spokesperson reportedly said the discrepancy was due to a break and tips that came in after the executive had clocked out.
On his last day, Khosrowshahi tweeted that his second day delivering — six trips over the course of two hours this time — was “not as good as day 1” because of traffic, and that apartment drop-offs were “a pain.” He also said he received lower tips and posted a screenshot showing that he earned about $50.
Contracted workers for Uber have long lamented the lack of sustainable wages, as well as the lack of benefits provided for their work — thanks to the passage of Prop. 22. The company has previously said its ride-hailing drivers make about $25 an hour on average. But UberEats contract workers typically make less than that, and historically haven’t had health benefits directly through the company.
According to Glassdoor data, the average hourly wage for an Uber Eats worker ranges from $12 to $18. The average food delivery driver, not just those employed at Uber, makes about $13 an hour, according to Payscale.
Moreover, food service delivery fees typically average 15% to 30% and have been a major point of contention for both customers and restaurants using the service. The markup does not reflect on the delivery worker’s payment either. A New York Times story in Feb. 2020 found that food service delivery markups can cost up to 91% more than if you ordered a meal directly from a restaurant.
California recently passed a bill requiring food delivery apps to provide an itemized breakdown of costs to both customers and restaurants for each transaction. This means that it must list food price, fees, tips, and commissions separately. Though the original bill proposed putting a permanent cap on delivery fees, the version that passed prohibits companies like DoorDash, UberEats, Postmates, and GrubHub from charging higher prices for food than what the restaurant charges its customers.
Not to mention app-based food delivery drivers have also voiced concerns over a lack of pay transparency, with many reporting having their tips taken by food delivery companies. A 2019 report in the New York Times revealed DoorDash was using customer tips to subsidize workers’ base pay, which was followed by the company reportedly agreeing to pay $2.5 million to settle a lawsuit alleging DoorDash kept customer tips that were intended to go to their delivery drivers.