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How the Democratic Party Befriended Megacorporation Uber for Its Convention
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Posted on Jul 28, 2016
By Sonali Kolhatkar
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The Democratic National Convention in Philadelphia has been a logistical
nightmare. The Pennsylvania Convention Center and most major hotels are
located in the busy city center just steps from City Hall. But the actual
convention is happening miles away at the Wells Fargo Center, surrounded by
metal barricades and with most driving and walking routes choked by Secret
Service mandates.
One clear winner in the challenge of transportation for the tens of
thousands of delegates, party staffers, journalists, volunteers and workers
to and from the convention has been the ride-sharing company Uber. Barred
from operating in Philadelphia until just two weeks before the convention,
the story of how Uber wound its way into a cozy spot at the Democratic
convention is illustrative of the Democratic Party's contempt for labor and
the economic interests of working-class people.
Rather than just being a backdrop for the convention, it is worth examining
how the city has struggled with poverty, low wages and gentrification and
how the story of Uber plays into it. The Philadelphia Inquirer examined the
extent of "deep poverty" in the city-which it defines as an "income of 50
percent or less of the poverty rate"-and
found(http://articles.philly.com/2015-10-01/news/67015543_1_poverty-rate-dee
p-poverty-philadelphians) that Philadelphia had "the highest rate of deep
poverty among America's 10 biggest cities." The reason for this depressing
statistic, the paper said, might be that "the city has a greater fraction of
its population detached from the labor market than do many other cities."
The Philadelphia Parking Authority sets the rates for taxi drivers in the
city, so those who complain that Philly taxis are too pricey should remember
that the prices are not up to the driver. The parking authority but does not
impose the same rates on drivers for Uber's UberX service, who also are
exempt from most of the regulations and fees imposed on taxi workers.
(Uber's luxury UberBLACK service, by contrast, has been allowed to operate
in the city because it is a limousine service that follows the same
regulations as other limousine companies.)
Rebecca Hammell works in downtown Philadelphia at Liberty Resources Inc. and
the Philly Fair Ride Coalition and shared with me the whole sordid story of
Uber, the Democratic National Convention and Philadelphia. Most taxi drivers
in the city are "people making under minimum wage, mostly people of color,
probably majority immigrant population," she told me. In contrast, most
UberX drivers own their own vehicles and drive into the city from the
suburbs. Still, both sets of drivers are hugely underpaid-because of the
high fees that the city charges taxi drivers and because Uber sets rates too
low and then takes a large cut from its drivers.
For months now, elected officials in the Pennsylvania Statehouse have been
considering a complex piece of legislation that would have fairly legalized
Uber in Philadelphia. Hammell, who is a disability rights activist, has been
involved in the fight to make taxis accessible for the disabled, and part of
the argument against Uber included the lack of accessibility. Additionally,
Uber's offerings of cheaper rides require the use of smartphone technology,
which leaves out poor residents who are less likely to own an iPhone or
Android.
But just before state officials went on recess, they tabled the bill to
regulate Uber. Then, according to Hammell, "the Philadelphia Parking
Authority went behind closed doors with Uber and made a secret back-room
deal," which amounts to the city "not taking any enforcement steps against
Uber between now and September 30." Of course, the deal was struck just in
time for the Democratic National Convention. "The Parking Authority has
turned its head away from Uber's multiple transgressions while continuing to
regulate the taxi industry very heavily," Hammell said, clearly disgusted
with the city's double standards.
But Uber was also busy negotiating with the Democratic National Committee
directly to not just be present in the city but to gain special access to
the convention-access that other ride-sharing companies and traditional taxi
companies are not
getting(http://www.phillymag.com/news/2016/07/27/uber-lyft-dnc-lounge-fight/
) . Fortune
explained(http://fortune.com/2016/07/26/how-uber-took-over-the-democratic-na
tional-convention/) that Uber lobbied both the Democrats and Republicans
earlier this year to "provide a dedicated fleet of complimentary vehicles to
ferry VIPs" in exchange for "an exclusive car lot inside the outer security
perimeter."
While the Republicans turned down the deal, the Democratic Party, heavily
backed by unions, decided to enter into an agreement with the
union-busting(http://qz.com/619601/uber-is-using-its-us-customer-service-rep
s-to-deliver-its-anti-union-message/) Uber, a company that has had to pay
out hundreds of millions of dollars in settlements from a steady stream of
lawsuits(https://www.theguardian.com/technology/2016/apr/13/uber-lawsuits-61
9-million-ride-hailing-app) .
It may be no coincidence that David Plouffe, a longtime Democratic Party
political strategist credited with managing Barack Obama's successful
presidential campaign, is now working in a top
position(http://www.politico.com/story/2014/08/david-plouffe-uber-campaign-m
anager-110149) at Uber. Plouffe told Politico when he was first hired in
2014 that he would be "trying to change the point of view of established
politicians, and there's a lot of resistance coming from people who want to
protect the status quo."
Hammell's organization-Fair Ride Philly Coalition-and other groups protested
on the first day of the DNC. Among them was Ron Blount, president of the
Taxi Workers Alliance of Pennsylvania. "I'm really disgusted with the
Democratic national party," he told the
press(http://fusion.net/story/330471/uber-philadelphia-democratic-convention
/) . "They're supposed to represent us working people, people who are less
fortunate, people with disabilities, but it's like they're just rolling over
for a shrimp cocktail and a ham sandwich."
Uber is now valued at more than $60
billion(http://www.bloomberg.com/news/articles/2015-12-03/uber-raises-fundin
g-at-62-5-valuation) and is a global operation whose deal-making in
Philadelphia is only one small example of the company's aggressive business
practices.
"Uber is taking over the world," Hammell told me. "Their endgame is
self-driving autonomous vehicles to take out the driver altogether."
The Democratic Party's cozy relationships with companies like Uber is
exactly why establishment candidates like Hillary Clinton are dismissed as
"neoliberal" politicians who are beholden to Wall Street. It is the reason
why the party had been losing supporters for years until a candidate like
Bernie Sanders came along and began broadcasting a message that resonated
with ordinary Americans. But, like the party has been doing right from the
start of this election year, it has chosen to embrace corporate power at the
expense of its own popularity and even its potential to win political power.
Ultimately, companies like Uber are able to use the Democratic Party as a
vehicle for growth, and ordinary Americans are left on the side of the road.
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