Portland Is Trying to Cap Uber's Cut at 20%. Uber Is Threatening to Leave.
Portland city councilors are voting on a proposal that would cap how much Uber and Lyft can take from each fare at 20%. Right now, that number fluctuates — and regularly exceeds 40%. If passed, drivers would keep at least 80 cents of every dollar a passenger pays.
Uber's response? They've threatened to shut down operations in Portland entirely. "This proposal would force Uber to exit Portland when the ordinance takes effect," an Uber spokesperson said. The company claims the city's existing fees and insurance requirements already exceed 20% of the cost per trip, making the cap mathematically impossible to comply with.
"The percentage of each ride we receive is a sheer insult to our value. I love my job. I value my job. I want to get paid for my value." — Kiva Henderson, Portland rideshare driver since 2015
Research cited by council members shows Portland drivers make just over $12 per hour on average after expenses — well below a living wage. Uber counters that drivers make $30+ per hour while a passenger is in the car. The gap between those two numbers tells you everything about how each side is doing the math.
The proposal heads to a committee vote next month. If you're a Portland driver — or a driver anywhere watching this fight — this is the one to follow. A win here could set a national precedent.
Drivers Sue Uber for Violating Its Own Law — The One It Spent $59 Million To Write
In 2020, Uber spent $59.5 million helping pass California's Proposition 22 — a ballot measure that kept drivers classified as independent contractors instead of employees. In exchange, the law promised drivers specific protections: minimum earnings guarantees, health care stipends, occupational accident insurance, and — critically — a real appeals process when deactivated.
Four years later, a lawsuit filed Monday in San Francisco Superior Court alleges Uber never built that appeals process. Drivers say they are deactivated based on grounds not even listed in their Platform Access Agreement — and given no meaningful way to fight back.
The Case of Devins Baker
Devins Baker drove for Uber and Lyft in the Bay Area for eight years. Right before Christmas 2024, Uber deactivated him. He believes it was triggered by a passenger complaint after he braked hard to avoid hitting someone who darted across a freeway — causing his unbuckled passenger to fall from his seat. "I don't know because we never find out which passenger complained," Baker said. He is now scrambling to avoid homelessness while trying to support four children. "I'm the only one with income. It has turned my life upside down."
The lawsuit, backed by Rideshare Drivers United — a 20,000-member California driver group — argues that because Uber violated Prop. 22's conditions, it should no longer be allowed to classify drivers as independent contractors. Attorneys are seeking back pay and full labor code rights for affected drivers.
Uber called it a "publicity stunt" and said it provides a clear appeals process. The court will decide.
What Prop. 22 Promised Drivers (And What Drivers Say They Never Got)
What Every Driver in America Should Know Right Now
Drivers Making It Happen This Week
💰 Earnings Win — Chicago
"Stacked $2,100 this week working the NBA playoffs and a downtown convention. Surge hit both apps at the same time — I stayed on whichever was paying more. Strategy beats loyalty every time."
— D.W., Chicago
⚖️ Rights Win — California
"Filed a wage claim after tracking what I was actually owed under Prop. 22's minimum earnings guarantee. Got back $900 in underpaid wages. Know your rights. Use them."
— A.R., Bay Area
🎙️ Voice Win — New York
"Spoke at City Council about deactivation. Three other drivers came with me. They listened. Change doesn't happen unless you show up."
— T.M., New York City
THEY WON'T.
"The platforms track everything you do. The least we can do is keep each other informed. Forward this to one driver right now — it takes 10 seconds and costs the platforms everything."