The rise of the gig economy spells the end for these workers: ‘We’re the vestiges of the old system’

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Workers are increasingly losing jobs to the gig economy.

Kevin Savage is 50 years old, has already lost two jobs to the gig economy and expects to lose a third sometime soon.

Online-grocery delivery has had a rocky history since its introduction in the late 1980s and early 1990s, including the high-profile flameout of internet-only grocery store Webvan during the dot-com bust. After that and similar attempts failed, grocery stores like Safeway and Albertsons built up their own delivery services, complete with unionized employee drivers. Those who still drive for Safeway’s delivery service use company-owned trucks and make as much as $25 an hour.

“We’re battling Safeway, which is trying to replace drivers with DoorDash,” said Jim Araby, spokesman for UFCW 5. Though the Bay Area contract doesn’t expire until 2024, Araby said Albertsons is reducing workers’ hours and the ZIP codes to which they can deliver. “Grocery stores have notoriously thin margins,” said Bill Pearce, assistant dean and chief marketing officer for the Haas School of Business at UC Berkeley. “For them, using other people’s money — like DoorDash’s — is more appealing.”

“ “Nothing against Dashers, but they’re working for a stop. Safeway drivers are working for a career.” ”

 

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