I Got 1099 Problems but Finding a Ride Ain’t One: Conflict Resolution in the Ridehail Industry

Abstract

In 2017, Uber announced it had a “broken relationship” with its drivers. Yet what broke the relationship and what effect might it have on Uber’s organizational performance? This paper is a mixed-methods study of how conflict impacts the relationship between platforms and drivers. First, by drawing on 55 original interviews with rideshare drivers, this paper identifies conflict triggers that damage the relationship between platforms and drivers. Second, this paper uses new time diary data from 490 Uber, Lyft, Juno, and other Transportation Network Company (TNC) drivers from across the United States to empirically test if these conflict triggers are associated with key TNC performance metrics. Specifically, this paper finds that a “broken relationship” is associated with drivers withholding their working time from Uber and allocating it toward their competitor, Lyft. Additionally, this paper finds that drivers who have a broken relationship with Uber are more likely to recruit (‘steer’) passengers toward Lyft. These behaviors provide a link between organizational conflict and key performance metrics in the ‘gig economy.’