Uber has expressed concerns regarding Oregon's Senate Bill 1166, noting that it may inadvertently lead to decreased driver earnings, fewer flexible job opportunities, and increased ride costs for consumers. The company referenced similar legislation enacted in other cities, which reportedly resulted in service cuts and limited access.
According to Medium, legislation in Seattle similar to SB 1166 prompted significant changes within the gig economy. After the PayUp ordinance was implemented, Uber reported a 30% reduction in delivery order volume and a 17% decline in active couriers. While drivers technically earned more per trip, the overall number of trips dropped considerably, leaving many with lower total income and fewer work opportunities. Data illustrates how higher earnings per trip do not necessarily translate into better financial outcomes for workers.
Most rideshare drivers in Oregon are part-time workers who utilize gig platforms to supplement other income sources or bridge employment gaps. Lyft reports that 94% of its drivers spend less than 20 hours per week on the app, often balancing this work with caregiving, education, or another job. Consequently, flexible scheduling is highly valued by drivers, with the potential of added regulations deterring drivers.
Experiences from other cities suggest minimum pay mandates often result in higher fees for riders as platforms adjust pricing to cover rising labor costs, Medium reported. In Seattle, following similar regulations, Uber and DoorDash increased their per-order fees by $4–$5. These hikes made everyday services like food delivery or rideshare less affordable for low-income users, contributing to reduced demand and limiting access to essential transportation.
Business Daily highlights that rural and suburban areas of Oregon are particularly susceptible to service disruptions under SB 1166. In many of these communities, ridesharing is one of the few viable transportation options available. Increased operational costs could compel platforms to scale back services in less profitable zones, leaving many residents—especially seniors, low-income individuals, and people with disabilities—without access to reliable transportation options.
Flexible Work News reports that the Oregon bill aims to increase driver pay rates significantly above current structures within the rideshare business model. Similar initiatives in other markets have led to unintended consequences such as reduced access and working hours along with overall disruption of gig-based services.
Uber's response follows SB 1166's introduction in the Oregon Legislature this spring. The company cites recent data from Seattle and Minnesota showing that pay mandates often reduce trip demand while eliminating jobs and raising rider costs—particularly affecting rural or low-income areas. As lawmakers consider potential policy impacts, Uber urges closer examination of unintended consequences observed elsewhere.