Uber Launches 'One Less Car' Initiative with US$1000 Offer

Uber has unveiled a new initiative, "One Less Car," aimed at encouraging car owners in select North American cities to leave their vehicles at home for five weeks. The program, running from July 22 to August 25, will provide 175 participants across Los Angeles, Chicago, Washington DC, Miami, San Francisco, Toronto, and Vancouver with US$1,000 to explore alternative modes of transportation.

Participants will receive US$500 in Uber credits, US$300 for public transportation, and US$200 for car rental services. Additionally, they will be granted a one-month free membership to Uber One, offering benefits such as 6% Uber Cash on eligible rides and zero delivery fees on food and groceries. To qualify, participants must be over 18 years old, possess a valid driver's license, use their vehicle more than three times a week, and be willing to document their experience.

Uber's initiative aims to tackle the high costs of car ownership and its impact on urban congestion and air quality. According to the American Automobile Association (AAA), the average monthly cost of vehicle ownership in the United States now exceeds US$1,000, driven by record-high prices for new vehicles and a 90% increase in financing rates. Adam Gromis, head of sustainability policy at Uber, stated, "Many Uber riders tell us they want to live a more car-light lifestyle with a variety of ways to ride, including public transit, shared bikes and scooters, walking, and rideshare."

This initiative follows a similar pilot program conducted in Australia in 2023, where participants were given AUD$1,350 (approximately USD$870) to stop using their cars for four weeks. Uber reported that Australian participants increased their use of walking, biking, and public transit, though only a small fraction committed to permanently reducing their car use. Uber concluded that access to at least four alternative transportation modes is essential for reducing reliance on personal vehicles.

This initiative is part of Uber's broader efforts to reduce the number of cars on the road and promote sustainable urban mobility. Despite these efforts, studies have shown that ride-hailing services have contributed to increased traffic congestion in cities. Nevertheless, Uber's initiative aligns with global trends towards more sustainable transportation solutions, which include enhancing public transit systems, promoting bike and scooter sharing, and encouraging walking.

Uber Reaches Minimum Wage Agreement in Massachusetts

In related news, Uber and Lyft have reached a historic agreement in Massachusetts that guarantees a minimum wage for their drivers. This follows a nearly four-year legal battle. The agreement ensures significant wage increases and provides drivers with access to paid sick leave, workers' compensation insurance, and additional health benefits.

According to WBUR, drivers will now earn at least US$32.50 per hour while transporting passengers. This wage is higher than the minimum rates in other states, such as New York, where drivers earn a minimum of US$26 per hour. The agreement also includes up to 40 hours of paid sick leave per year at a rate of US$20 per hour, insurance for work-related accidents, and portable health funds for eligible health insurance plans.

While this agreement brings substantial benefits to drivers, it also removes the risk of drivers being classified as illegal workers in Massachusetts, allowing Uber and Lyft to continue operating with their drivers considered as independent contractors. The new wage requirements are set to be implemented starting Aug. 15, with annual adjustments based on inflation.