• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Tech

Uber and Lyft Have a Powerful New Enemy in Washington

By
Ian Mount
Ian Mount
Madrid-based Editor
Down Arrow Button Icon
By
Ian Mount
Ian Mount
Madrid-based Editor
Down Arrow Button Icon
May 20, 2016, 7:47 AM ET
Photograph by Bloomberg via Getty Images

This story has been updated to include comment from Uber.

Nine out of every 10 Americans may have no idea what the “gig economy” is, but Massachusetts Sen. Elizabeth Warren certainly does. And she doesn’t like it one bit.

In a speech Thursday at the annual conference of the New America think tank in Washington, D.C., Warren slammed ride-hailing companies Uber and Lyft for undermining the economic safety net of worker protections built over the last century.

The senator noted that everything from minimum wage and workplace safety laws to the 40-hour workweek, the right to unionize, and antitrust regulations created a system in which, between 1935 and 1980, the bottom 90% of Americans by wealth got 70% of all income growth.

But, she said, the last 30 years have seen those protections come under relentless attack. And she places the “gig economy” in general—and Uber and Lyft in particular—as the most recent weapon in the war against low- and middle-income workers.

“The much-touted virtues of flexibility, independence, and creativity offered by gig work might be true for some workers under some conditions,” Warren said, “but for many, the gig economy is simply the next step in a losing effort to build some economic security in a world where all the benefits are floating to the top 10%.”

For Warren, Uber and Lyft contribute to this pain by driving down wages and fighting against gig workers who want a greater share of the pie.

“While their businesses provide workers with great flexibility, companies like Lyft and Uber have often resisted the efforts of those same workers to access a greater share of the wealth generated from their work,” she said. “Their business model is, in part, dependent on extremely low wages for drivers.”

In a prepared statement, an Uber representative told Fortune, “Our platform provides independence and flexibility, and nearly 90% of U.S. drivers tell us that they partner with Uber to be their own boss and set their own schedule.”

To be fair, Warren noted that the gig economy didn’t invent problems with the social safety net—corporations have long exploited contract workers, and worker protection regulations haven’t been updated—and she said that gig work was often helpful for those who were unemployed.

But her attacks are not good news for Uber, Lyft, and other gig economy firms that have been fighting an uphill battle to convince lawmakers that they need less—not more—regulation.

In recent weeks, Uber and Lyft left Austin after the city demanded they conduct fingerprint background checks, they’re both mired in settlement talks with drivers who say they should have been classified as employees and not contractors, and Uber has recently announced a deal to create a drivers guild in New York.

 

For Warren, the social safety net needs to be updated to make benefits more mobile. That said, it’s unlikely the policy proposals she made Thursday will appeal to companies dealing with many workforce issues already.

In her speech, Warren said that all workers should pay into Social Security in order to keep the system funded, which means that all employers—even those who employ 1099 gig workers—would have to handle withholding payroll taxes.

Second, Warren said all workers should be covered by catastrophic insurance, something that would demand another automatic deduction that gig economy companies would have to handle.

And finally, she said every worker should have earned paid leave.

These worker protections would all add paperwork and expense to the gig economy, and put into doubt the viability of companies whose business models are, as she said, “dependent on extremely low wages.” The months to come may show if Uber and Lyft are in that group.

Fortune has contacted Lyft and will update the story if the company responds.

About the Author
By Ian MountMadrid-based Editor
LinkedIn icon

Ian Mount is a Madrid-based editor at Fortune.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

How Grab’s CTO sees the superapp’s push into physical AI and automated driving—and why he uses his competitors’ robots in the office
AITransportation
How Grab’s CTO sees the superapp’s push into physical AI and automated driving—and why he uses his competitors’ robots in the office
By Angelica AngMay 22, 2026
9 hours ago
Trump AI and crpto czar David Sacks sits next to Meta CEO Mark Zuckerberg at a dinner table in the White House as Zuckerberg turns to Sacks and says something.
AIAmerican Politics
Tech billionaires convinced Trump to back off an AI executive order. But much of MAGA favors AI regulation
By Jeremy KahnMay 22, 2026
10 hours ago
James Daunt sits in a booksop, gesturing with both hands and smiling.
AIbooks
Barnes & Noble CEO clarifies the bookseller’s stance on AI-written books after refusing to ban them: ‘This is a straightforward rejection of AI books’
By Sasha RogelbergMay 22, 2026
11 hours ago
A photo taken during the Maroon Bells bicycle ride during Fortune Brainstorm Tech 2019 in Aspen, Colorado. (Photo: Fortune)
InnovationBrainstorm Tech
Fortune Brainstorm Tech 2026 will be brilliant
By Andrew NuscaMay 22, 2026
12 hours ago
satya nadella
AITech
Microsoft reports are exposing AI’s real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
13 hours ago
Sam Altman standing in a lift.
AIOpenAI
The big questions looming over OpenAI’s trillion-dollar IPO
By Beatrice NolanMay 22, 2026
13 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
2 days ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
3 days ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
3 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
15 hours ago
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
Workplace Culture
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
By Sydney LakeMay 20, 2026
2 days ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
13 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.