[HN Gopher] Uber and Lyft shutdown in California averted as judg... ___________________________________________________________________ Uber and Lyft shutdown in California averted as judge grants emergency stay Author : badwolf Score : 249 points Date : 2020-08-20 19:07 UTC (3 hours ago) (HTM) web link (www.theverge.com) (TXT) w3m dump (www.theverge.com) | dang wrote: | The earlier thread, before this new information came up, is at | https://news.ycombinator.com/item?id=24224882 and still ongoing. | vmchale wrote: | Damn. Too big to regulate! | node-bayarea wrote: | Lets regulate it to death! | senderista wrote: | How much of this debate would be moot if we had a proper social | safety net, so workers didn't depend on their employers for | necessities like health insurance? Social democracy can make the | economy more agile, not less. | afrojack123 wrote: | Possibly a dumb and general question. Is Uber and Lyft | responsible for state tax revenue from its contractors? Or are | the contractors supposed to pay their own taxes? I could | understand the states having problems with contractor's paying | their own taxes considering their incomes are lower. | darkwizard42 wrote: | Independent contractors pay their own taxes. Uber and Lyft | offer tools and assistance to help drivers adequately report | and take deductions etc. as needed (Lyft at least offers the | ability to export ride data etc. as needed, I believe but am | not sure if Uber does the same). | | Companies pay taxes for their employees (different tax | relationship altogether). Another way to think about it is... | do you ever pay taxes for a painter or plumber that does a job | for you? (probably not) | solutron wrote: | This is a symptom of the core, underlying problem. The coupling | between employer, employee and health care needs to be undone. | Employers aren't healthcare providers, we don't need additional | middle-men and bureaucracy dictating, by proxy, how people | receive care and from who. Universal healthcare would let Uber | and Lyft continue to do what their primary focus is, and drivers | would be able to do whatever they want work-wise and not have to | worry about its affect on their ability to receive healthcare at | an affordable price. | viscanti wrote: | It's crazy to see the same politicians who push for universal | healthcare also push for more coupling of employment to | healthcare. | xwdv wrote: | Why does it seem like people are trying so hard to be outraged | about this? | filereaper wrote: | Good, this can wait till Covid-19, forest-fires and other urgent | matters right now in California have been taken care of. | AlexandrB wrote: | Yes. Once those crises are over it's all smooth sailing ahead! | There'll be TONS of time for labor law then. | filereaper wrote: | I'm not saying it'll be smooth sailing at all, just that this | isn't the right time to cut access given all the other issues | that are ongoing. | Bahamut wrote: | Tell that to Uber and Lyft. | slimed wrote: | Tell them what? That they are _required_ to operate in CA | no matter the terms? Good luck with that. | AlexandrB wrote: | I know global warming is a pretty controversial topic on | this site, but I expect the frequency and severity of | "other issues" to increase in the future. Thus what you're | saying is there will _never_ be a right time. | fsociety wrote: | I and many others have never been as reliant on Uber and Lyft | as we have now. I'm fortunate enough to have finances to adapt | to this, but a lot of people don't. | HaloZero wrote: | It won't even have to wait till then. November is the Prop 22 | ballot. If it fails, I imagine Lyft/Uber will just have to | start switching. | | By Sept. 4 each defendant must submit a sworn statement from | its CEO "confirming that it has developed implementation plans | under which, if this court affirms the preliminary injunction | and Proposition 22 on the November 2020 ballot fails to pass, | the company will be prepared to comply with the preliminary | injunction within no more than 30 days after issuance of the | remittitur in the appeal." | | From: https://www.sfchronicle.com/business/article/Uber-Lyft- | win-l... | node-bayarea wrote: | Democratic politicians are terrible when it comes to business! | They are going to kill great companies AND the economy for their | self-serving political BS! | serjester wrote: | Completely anecdotal but I bring this question up every time I | drive in an Uber and overwhelmingly the drivers tell me they want | to stay independent. No one is forcing drivers into their jobs. I | really struggle to understand why we need bureaucrats imposing | their idea of what a market should look like on an fairly | efficient market. | | From my experience the drivers are perfectly aware of the costs | that go into driving so I really don't buy the exploitation | argument. Seems like a loss for everyone except bureaucrats. Also | don't see how it's realistic to expect them to be able to adjust | to this on a dime. Although large, California is still a minority | of their revenue. | HaloZero wrote: | I believe the idea is that employee protections and standards | must come from the government. | | Sometimes it comes up naturally (see the benefits of being a | software engineer) but when unemployment is high those | protections tend to go away especially for jobs that have | minimal barrier of entry (ie ride share driver). Right now | drivers have very little leverage or power over Lyft/Uber | except for not participating in their market. | | The question of AB5 is the right protections and classifying | them as employees is I think the debate. I believe most drivers | want independence b/c most drivers only drive part time. But | the drivers who drive full time want better protections. | Consultant32452 wrote: | I feel like there is a general pattern. The left tends to | prioritize all the good ideas: gender equality, racial | equality, income gaps, etc. The right tends to prioritize | systems that actually function in the real world with real | people who are sometimes jealous, stupid, unethical, liars, | etc. This is just a case where the first group has run amok | without talking to the second group. It's the good idea of | everyone should have good benefits without taking the time to | design a system that actually works in the real world. | | You actually see this sort of dynamic in startups where you | have two people at the top. One is the creative one who pushes | all the boundaries and stuff. The other person is the more | pencil pusher/lawyer/business type who makes sure the bills get | paid on time. | | Lots of good things happen when you can get these two types | working together instead of hating each other. | senderista wrote: | There's a difference between being skeptical of idealistic | schemes and fetishizing the status quo, which is what I think | the right predominantly does. | treeman79 wrote: | Good insight. | | Coming together is tricky when there is no common grounds. | | One side wants wealth to be fairly Evenly distributed to help | the poor. | | The other side helps the poor by creating so much wealth that | that most poor people have a lot of wealth. | | These days you can be considered poor and have housing, ac, | heat, tv, video games, maybe a car, and weight problems | because food is so cheap. | | This only leaves those who truly can not or will not work. | Severe physical or mental illness, etc. | | Some can't stand that inequality exists. Others "know" that | destroying inequality means we create more poor people. | | That's not even touching right to own body vs right to life | crowd. There is almost no middle ground in that battle. | Either it's removing a sac of cells or killing a baby. Maybe | some wiggle room at the start, but none by end | chillwaves wrote: | They are poor because they live on a knife's edge, one | accident away from financial insolvency or lack of | sufficient access to necessities like health care and | education opportunities. | | Also having to work multiple jobs to break even. The | problem isn't "inequality" it is that the floor in the US | is so low compared to other wealthy nations. | bluedino wrote: | Lots of people who make decent money live paycheck to | paycheck because of poor decisions | [deleted] | eitherisarb99 wrote: | Either one is an arbitrary choice that influences the market. | | Why should a supposedly free society be free to accept only how | Uber or Lyft might have it? | | It isn't just bureaucrats but the public that votes them in. | You're cherry picking bits n pieces from the broader social | narrative to highlight. Why should anyone care what any random | poster on HN thinks is just as valid and vapid a question once | you take 5 minutes to think it over. | | HN is just as knee jerky and shallow as Twitter and Reddit. | Don't kid yourselves folks | chrisjarvis wrote: | I tend to agree with this, I've always thought ridesharing was | rather beautiful in terms of economic efficiency: pair those | with extra money but who don't want to drive at that moment | with those with extra time who want money. As long as there is | adequate education about the all-in costs of car ownership I am | all on board. And at scale it reduces traffic (or at least | amount of cars in an area). | all_blue_chucks wrote: | We should all care. Uber doesn't provide health insurance. | Instead Uber drivers get their healthcare costs covered by the | rest of us (either via ACA subsidies or written-off care | provided to the uninsured). | labcomputer wrote: | > Uber drivers get their healthcare costs covered by the rest | of us | | So what? People without jobs also get their healthcare | covered by MediCal (with zero out of pocket expenses). Is | that also a problem? Wouldn't it be better if we had | universal healthcare? | usaar333 wrote: | Making them employees doesn't give them health insurance. | Only if they work over 30 hours a week, which Uber is highly | incentived to cap. | | Besides, what you are actually stating is that Uber riders | should pay for Uber driver's health insurance, rather than | the general population. | all_blue_chucks wrote: | Correct. Uber drivers should play by the same health | insurance rules as other workers. And under today's laws | that requires they become employees. | | Ideally health insurance should be decoupled from | employment status, but until then, we should all play by | the same rules. | usaar333 wrote: | Again, I'm not following. Even if Uber drivers became | employees I don't see why they'd even get health | insurance. | | (This seems to be more about minimum wage, workers comp, | UI, etc. which they would get) | crazyjncsu wrote: | Uber drivers pay taxes on earnings as contractors too. This | at least partially covers ACA subsidies (if not fully). | | And we subsidize employer-provided healthcare also, hence its | existence. | InitialLastName wrote: | Employer-provided healthcare is a byproduct of WWII-era | price-fixing that gave employers no way to compete on wages | (so they started competing on benefits, including | healthcare). | 908B64B197 wrote: | Posted it in an other thread [0] but | | Pre-Uber, either the driver rented the car to a middleman who | rented the medallion from a rich owner, or said owner was | selling and financing (most banks won't touch these | medallions!) a medallion at a ridiculous interest rate to a | driver that planned to use it as his retirement savings (an | extremely volatile asset and not very liquid). | | The more I spoke to cab drivers the more it seemed their | industry was a pyramid schemed aimed at helping established | rent-seeker take advantage of often poor new immigrants. Uber | brought a breeze of fresh air: Someone could simply buy a car, | calculate the depreciation and it's value on the market (since | unlike medallions cars are relatively liquid assets!) do | rideshare and calculate their profits or loss. They can get out | of the game at anytime, and they know exactly how much they are | going to get for the car they have should they sell it. | | [0] https://news.ycombinator.com/item?id=24225648 | RIMR wrote: | Sure, Uber drivers aren't forced to work at Uber specifically, | but everyone is obligated to work in a capitalist society if | they want to survive, so it is important that employers in | general are bound by laws that protect workers. | | In this case, California created new laws in response to | employee abuses at Uber and Lyft. | | This notion that Uber and Lyft drivers can afford to quit and | find a new career is infantile. The real world does not work | that way, and people who labor for low wages should be | protected from abuse. | bsder wrote: | > overwhelmingly the drivers tell me they want to stay | independent. | | However, _I_ overwhelmingly don 't want to pay for their | healthcare or food stamps because they aren't earning enough | money. | | I personally think that AB5 doesn't go far enough. If you | employ people for more than 40 hours, you should owe healthcare | and benefits, _period_. It doesn 't matter whether those 40 | hours are one person or 10 people or whether the people are | contractors or employees. If you can't deliver benefits, fine, | then you owe as payment to the government to provide that. | | We _WANT_ people to have stable employment, not gigs. | labcomputer wrote: | Sure, but you can't always get what you want. | | Not every business model is economically viable, and (at a | guess) rideshare-drivers-as-employees might be one of those | un-viable models. | | You can ban exploiting labor, you can force companies to | share more with the workers, but you can't legislate well- | paying jobs into existence. You might view Uber as an | exploitative employer, but it isn't some wildly-profitable | company that is failing to share its bountiful profits with | the workers. | | I don't care whether Uber and Lyft stop doing business in CA | as a result of AB5, but I think that's a fairly predictable | outcome. | dgellow wrote: | Some people explicitly want gigs. | mardifoufs wrote: | But not allowing those people to work with uber would just | make them... even more dependant on the state? Either: | | 1) They are driving because it's the best opportunity | available for them, and losing that possibility would force | them to work less desirable/paying jobs, have less disposable | income if uber is just a side gig for them or just end up | unemployed. Which would lead to them contributing even less | to their healthcare/education/etc costs. | | Or | | 2) You are assuming that they are driving even if they can | get 40h jobs with good benefits but just choose... not to? Or | that if uber inevitably ends up closing their California | operations, they will magically find those cushier jobs & | those who drive to add to their income will just find an | extremely flexible side gig that can net them hundreds of | dollars a month? | | I don't understand how unemployment is a more desirable | outcome. Because uber will absolutely not pay for each of | their driver's benefits. And that's even if they were able to | afford it (they absolutely can't). | tempsy wrote: | imo biggest problem with the independent argument is Uber and | Lyft actively penalizes you as a driver if you decline | unprofitable trips. Also I believe Lyft (unsure about Uber) | even stopped showing you how much you make per trip and instead | just rolls it into one summary, presumably to make it harder | for you to do the cost/benefit of deciding whether a trip is | worth doing. | | that sort of big brother behavior is the antithesis of | independence and throws out any argument that Uber is somehow | just providing drivers with lead gen software like they're | Salesforce or something | grugagag wrote: | I agree, the driver's independence is only one way : when | convenient to them. | | Both Uber and Lift should lower their cut and stop these | practices if they really want the drivers to remain | independent | tempsy wrote: | yeah it feels like a few product level changes could easily | swing the argument back in their favor - but I guess the | risk has always been the impact to the efficiency of the | marketplace and overall customer experience. | ReaLNero wrote: | California is about 5% of revenue for Uber. | dcftoapv wrote: | Maybe, but this law will prevent Uber from ever turning a | profit in CA, so it's far easier to just shutdown operations, | and move their headquarters. | | I live here, pay taxes here, and vote here. I am actively | rooting against the state right now. | dmode wrote: | CA is 12% of Uber's revenue and 25% of Lyft's revenue | lhorie wrote: | Source? I've seen many different figures (including a very | reliable source that stated it was in the single digits for | Uber) | tyrust wrote: | You've asked for a source without linking your "very | reliable source". | lhorie wrote: | Uber's CEO is my source | cltby wrote: | > Seems like a loss for everyone except bureaucrats | | Not true, it's a great opportunity for javascript developers to | get up on their soap boxes and share with us their moral and | economic wisdom. | DevKoala wrote: | Thank you for this. | jsharf wrote: | haha, point taken. But I'd say it's good that they care. | Developers are in a different income bracket. Concern is far | better than cold indifference, which is what usually | happens... | talmr wrote: | wdym? is this related to the SO developer survey? | jpxw wrote: | This made me laugh out loud, lol | yunderalls wrote: | I laughed at this, but I do think I should point out that in | a democracy it's good for people to have opinions about | things that aren't their profession. | Judgmentality wrote: | I think it's less about people having opinions and more | about people being so self-righteous about something they | don't understand as well as they think they do. | [deleted] | geodel wrote: | Indeed. This is great point. JS developers have made seminal | contribution to our collective well being by their virtuous | signals and thoughtful commentary on anything that matters. | | With the advent of E-protests they are finally being able to | highlight against injustices taking place anywhere in the | world. | kbenson wrote: | Sublime. Just the _slightest_ change in the context in | which this was presented and Poe 's law would be in full | effect. :) | dcftoapv wrote: | Pot meet kettle | Spivak wrote: | Poking fun at your own ingroup is the joke. | maire wrote: | I remember when there was a crackdown on software independent | contractors. What most contractors did was go through an agency | that managed your services. The difference in pay was usually | 20% since the agency took 20% of your pay. | | I suspect this will happen ultimately with the drivers - | although I can't imagine the drivers will be thrilled with a | 20% cut in pay. | grugagag wrote: | 20% cut on top of the 30-40% that uber/lift take? | lovecg wrote: | The talking points I heard was that this was done because of | | 1) Payroll tax revenue 2) Unions feeling threatened | | The implication is in either case it's an explicitly hostile | action by the government in favor of special interests, and the | majority of drivers did not want this. | | Can anyone more knowledgeable on the topic pitch in -- is there | any truth to these arguments? | dcftoapv wrote: | The Los Angeles taxi union prevented (read: bribed and | coerced) the state / city government from installing a train | from LAX to DTLA because they were rolling in cash. | | Then, they got pissed about Uber, and had a rule enacted that | forced passengers to take a bus to an external lot which | turned the world's worst airport congestion into a way worse | situation. | | It is not unrealistic to think that they are a driving force | behind this situation as well. California is corrupt as fuck, | from GM paying LA to take out way more efficient train lines | so they could sell buses to Beverly Hills preventing LA from | building a subway. It makes living here absolutely miserable. | gamblor956 wrote: | _The Los Angeles taxi union prevented (read: bribed and | coerced) the state / city government from installing a | train from LAX to DTLA because they were rolling in cash._ | | This is false. Pure FUD. The LA taxi union isn't a very | powerful union, and was never the primary roadblock to | building the Green Line all the way to the airport. The FAA | was the reason: they thought the power lines for the rail | line would interfere with landing paths of planes. | https://www.dailynews.com/2008/01/09/why-green-line- | stopped-... | | _California is corrupt as fuck, from GM paying LA to take | out way more efficient train lines so they could sell buses | to Beverly Hills preventing LA from building a subway. It | makes living here absolutely miserable._ | | This is also a fraudulent representation of history. The | old rail lines (i.e., Pacific Electric) were never | profitable because they were intended as loss leaders for | suburban housing developments. The lines ultimately went | bankrupt when cars became popular because they had a max | speed of approximately 15 mph. When LA formed its nascent | public transportation system in the 50s, it acquired the | few busy/profitable lines remaining. Some of those rights | of way were used for new rail construction (for example, | the E line to Santa Monica). | dcftoapv wrote: | Every other city in the country has figured out rail | transportation. The FAA could have been pacified if there | was any political will to find a real solution. Blaming | the FAA because they rejected one design is pure bs. | | GM most definitely ran a campaign through the '50s and | '60s designed to increase the use of buses as a | replacement for street cars. That's not anywhere close to | debatable and LA was not the only city that went along | with it. | mdorazio wrote: | Was there ever a legitimately priced proposal for a train | to go from LAX to DTLA? The only reason the Expo line | worked was because the rights of way, and in some cases the | rail itself, was already in place. I don't remember seeing | anything other than concepts for an LAX train (not the | people mover under construction now, an actual train) and | thinking they would never get the funding and permits to | make it work. | | To your comment about rideshare pickups at the terminals. | Just no. Pre-COVID I was flying for work weekly and Uber & | Lyft pickups were awful for congestion in the circle, in | addition to taking forever to get to you. It was often | faster to walk off-airport and get a ride from the Hyatt. | And that was with normal level of traffic, not the expected | Olympics-level. I'm sure the taxi union was involved, but | the decision to switch to LAX-it made a whole lot of sense. | dcftoapv wrote: | Also a frequent flier. It sucked before but the solution | was 100% designed to benefit cab drivers. Moreover, it | absolutely fucked up the entrance to the airport which | went from long, but doable, to dozens of people missing | their flights per-day bad. | | I live in Playa Vista and had a 1.5 hour trip to LAX in | November. I was this close to driving through there at | 3am and stealing every one of their traffic cones. | tomjakubowski wrote: | What "Los Angeles taxi union" organization specifically | lobbied against the LAX train, which, by the way, is now | being built? | | There may well have been industry lobbyists fighting this | but until very recently (the last five years) almost no | taxi drivers in Los Angeles were unionized. | labcomputer wrote: | > which, by the way, is now being built | | Yea, over 25 years late. | | The Green Line (opened 1995) was originally supposed to | have a real LAX station, instead of the (current) | station-near-LAX-with-a-bus-transfer. The Crenshaw | Corridor train (which connects to the Green Line) will | open an LAX station sometime in 2021, if it isn't | delayed. | dcftoapv wrote: | @tom No, it's not being built. The train that is currently | under construction will connect the airport terminals to a | cab stand and car rental station less than a mile from the | airport because LA taxi drivers threw a shit fit when they | suggested building a train into downtown and Santa Monica. | | By the way, we're paying $4 billion for that. $4 billion to | carry passengers less than a mile from the airport so they | can then take a cab... | | LA cab drivers are all unionized now and they had their | entire hand stuck in this process. It was corruption as an | art form. | | Our government sucks. | monadic2 wrote: | Blame the corrupt officials that enabled this, you can | hardly blame a union for trying to act in their own self | interest. They don't represent you but the city does. | TheAceOfHearts wrote: | It's possible to blame both. You can certainly blame the | union for acting against the common good. | dcftoapv wrote: | I'll continue to blame the minority interests that are | doing everything possible to keep LA transportation stuck | in the stone ages, thank you. | slg wrote: | >Completely anecdotal but I bring this question up every time I | drive in an Uber and overwhelmingly the drivers tell me they | want to stay independent. No one is forcing drivers into their | jobs. I really struggle to understand why we need bureaucrats | imposing their idea of what a market should look like on an | fairly efficient market. | | Everyone who works for Lyft or Uber is making an active choice | to work for Lyft or Uber. It isn't surprising they would choose | to continue working for them rather than risk losing that job | entirely. That doesn't mean these people aren't being taken | advantage of by these companies. | | It is comparable to someone being paid below minimum wage under | the table. If that person entered into that arrangement | voluntarily, they likely did it because that is their best | option. If that person is given the choice of supporting a | lower minimum wage or being fired, they will likely support the | lower minimum wage. That doesn't mean that society as a whole | would benefit from a lower minimum wage. We should instead | enact laws we think are best for society as a whole (I'm not | convinced that AB5 is necessarily that, but I am speaking | generally here) while also implementing social policies that | can take care of the people like this who are caught in the | transition of raising labor standards. | JMTQp8lwXL wrote: | They want to stay independent, fine. Then actually treat them | like independent contractors. Let them set rates. Let them | decline rides without facing penalties by the platform. Make | the changes necessary to fit the independent contractor model. | And not just the rideshare company, but the state too: these | workers need unemployment insurance, as Covid has shown, and | somebody needs to pay for it: be it the workers or the | ridesharing businesses. | piptastic wrote: | I think they do allow them to set rates now in CA | | https://www.uber.com/blog/california/set-your-fares/ | apsec112 wrote: | Uber and Lyft already did this in California after the | passage of AB5 earlier this year. That's why they now have | price estimates instead of giving exact values ahead of time. | [deleted] | jkarneges wrote: | Indeed Uber allows drivers to set fares in California. I'm | not sure if that's true of Lyft though? | | https://www.sfchronicle.com/business/article/Uber-to-Lyft- | Yo... | smsm42 wrote: | So how that works in practice? One of the major advantages | of Uber for me was fixed price upfront. So now I don't know | the price until I order the ride? What if the driver sets | an excessive price - can I decline the ride? | grandmczeb wrote: | See https://www.uber.com/blog/california/set-your-fares/ | | My understanding is that the rider is presented with a | range of possible fares before searching (e.g. $9-10). If | they are matched with a driver asking for a higher fare | than that range they have the option to decline. | mehrdadn wrote: | > Let them decline rides without facing penalties by the | platform. | | Does the model of IC _have_ to imply that every ride is a | new, independent contract? Is there no other reasonable model | in which multiple rides are part of one contract? Why? | wtallis wrote: | What would such a contract look like? How would Uber or | Lyft hold up their end of a N-ride contract if they don't | end up having enough riders that day? | mehrdadn wrote: | > What would such a contract look like? | | The obvious answer: perhaps more similar to the way it | looks like right now? I just don't see why IC implies | "let them decline rides without facing penalties by the | platform". | kelnos wrote: | I don't think it directly implies that, but I think many | of the policies in place chip away at things that should | be a part of an IC's experience. Imposing penalties from | declining rides means that their power to set rates is | reduced. | ttymck wrote: | What does the alternative look like? A contract for 10 | rides? A contract for one week at a time? What if the | driver wants to serve one ride, and then never again: what | contract models allow that single ride to fulfill a | "contract"? | Swizec wrote: | The alternative is traditionally called a retainer. You | hire the contractor for "various tasks over a set period | of time up to N tasks and at least M tasks" | | This is the indie version of being salaried. Very common | among software engineers, for example. | fooker wrote: | Contracts can be pretty arbitrary. "Independent | contractor -- except can't turn down a ride." | ng12 wrote: | Great, next time I take a consulting gig I'll be sure to | turn down the jira tickets I don't want to do. | [deleted] | sixothree wrote: | Also, doesn't Lyft require drivers to have an Lyft sign on | their car? | ng12 wrote: | > Let them decline rides without facing penalties by the | platform | | The independent contractor model works both ways. Uber has | the right to avoid working with contractors who continually | refuse work. You can't be picky about your work but also | demand the company keep contracting you like you weren't. | | The independent contractor model doesn't map perfectly to gig | work but it's much closer than traditional employees. | gamblor956 wrote: | The point of Uber's _alleged_ model is that Uber _is not_ | employing the driver, but rather that it is simply matching | up drivers to passengers as a marketplace. | | If that's the case, then Uber has no right to avoid working | with contractors simply because they continually refuse | work. That indicates a non-independent agency arrangement | between Uber and the driver (aka "employee") and that's | what they're claiming they don't have. | strbean wrote: | Regarding the whole declining rides thing... | | Wouldn't most companies keep performance stats for their | contractors, and if one started refusing lots of jobs, stop | giving them work? Seems like Uber is just automating what is | a normal part of working with a contractor. | | With regards to unemployment insurance, this is really a hole | in our safety net. Regardless of whether Uber drivers | _should_ be considered independent contractors, we should | have a solution for independent contractors being put out of | work. | AnthonyMouse wrote: | > Wouldn't most companies keep performance stats for their | contractors, and if one started refusing lots of jobs, stop | giving them work? Seems like Uber is just automating what | is a normal part of working with a contractor. | | The easiest way to allow drivers to set rates, and I'm not | sure if there is some reason they haven't already done | this, is to just let the driver tell the app their rate, so | that they wouldn't even be offered rides below it (which | naturally might mean they don't get as many), and the | service would just give the ride to the driver in the area | with the best rate. Obviously that would mean that if you | set a lower rate you'd get more rides. | | > we should have a solution for independent contractors | being put out of work. | | It's kind of non-applicable to the situation though, | because when you have market pricing like this, you never | really get put out of work, it's just that the amount you | get paid may vary (and fall below the point where you seek | other employment). Does Uber even do layoffs of | contractors? | bhupy wrote: | Uber now lets drivers set their own rates, with a | multiplier: https://therideshareguy.com/set-your-own- | rates-uber-feature/ | manquer wrote: | I understand that there is significant power disparity , | however this is true for most contract gigs . | | If you turn down some projects and/or get back feedback most | companies will give you less work . | | Consultants have to be really niche and highly skilled , hard | to replace to be able to meaningfully negotiate their own | terms . | bsimpson wrote: | We expect eBay/Amazon/Etsy to enforce standards on their | platforms, but no one would argue that their sellers are | employees. | | I'm not convinced that having price and ride quality | standards invalidates the contractor relationship. | Dobbs wrote: | In all of your listed examples people set their own | standards, list their own products, and set their own | prices. I'm no way is it comparable. | Retric wrote: | Quality is debatable but none of eBay, Amazon, or Etsy | enforce prices. Fundamentally choosing prices is what | defines markets, trying to set them is the actions of an | employer. | mardifoufs wrote: | I'm not sure but I think amazon enforces some kind of | forced price adjustment policy. IIRC they change the | prices if their algo detect lower prices somewhere else | on the internet or on similar listings. I'll try to find | the WSJ article where I've read about this. | grumple wrote: | Maybe for their own products. Definitely not for others. | bgorman wrote: | This is just fundamentally wrong. | | As a kid I refereed soccer games. There was a set cost | structure for each game depending on age group and | whether I was assistant referee or center referee. | | There was a system where I could sign up in advance if I | wanted the work or not. Uber drivers know exactly what | they are getting into and they are free to quit at any | time. | | I was not an employee of the soccer leagues, I was an | independent contractor who was able to work for multiple | leagues if I wanted to and who was able to quit at any | time. | | There is a fundamental role in society for temporary | work. | | The employer will always set the price in any kind of | business relationship. If I hire a contractor to remodel | my house for 4 weeks does this mean he is a full time | employee of mine and I need to provide him benefits. If | he doesn't want the work, he doesn't need to be there. | Retric wrote: | _Uber drivers know exactly what they are getting into and | they are free to quit at any time._ | | New Uber drivers don't know what their pay will be. They | can eventually keep a running average to get some idea, | but that's only meaningful as part of an ongoing | relationship. | | Surge pricing seems like a benefit to the drivers, but as | they can't simply decline endless non surge prices that's | not an individual price negotiation. Essentially, their | options are quit the platform or accept the vast majority | of whatever is being handed to them. | theroo wrote: | This is a key point, well made. | brian_cloutier wrote: | > these workers need unemployment insurance, as Covid has | shown, and somebody needs to pay for it: be it the workers or | the ridesharing businesses. | | The state could also pay for it, through tax revenue. | Unemployment insurance seems like a great fit for a | government, since any kind of massive correlated | unemployment, as we're experiencing now, would absolutely | wipe out any private insurer. | TuringNYC wrote: | This is about bureaucrats. This is about politicians seeking | lobbying dollars, and return the favor with policy changes, | just like it was in NYC. | | In NYC, the Taxi and Limousine companies were one of the top | donors to the Mayoral race and, naturally, the Mayor strangled | Uber/Lyft soon after. | dmode wrote: | I think the problem is that driver's want to remain | independent, but their cost is borne by the society. Such as | the recent CAREs act had unemployment for drivers. I am | assuming they also get subsidized healthcare, and would be | eligible for Medicare ? Their employers don't really contribute | to these things. But perhaps the law should just have complied | them to contribute via additional taxes instead of asking them | to be classified | jschwartzi wrote: | If you're an IC, you have to pay Self-Employment Tax to cover | the employer's part of the payroll tax deductions. Plus | you're also liable for all the usual payroll taxes. That | burden doesn't go away just because you get a 1099 instead of | a W-2. So it's the drivers who are in theory paying in to | healthcare subsidies and Medicare. | [deleted] | deminature wrote: | The RideShareGuy is the most prominent blog for drivers and | their annual survey seems to reflect that [1] | | >66% of drivers said they wanted to be independent contractors | vs 15.8% who wanted to be an employee | | [1] https://therideshareguy.com/uber-driver-survey/ | shanemhansen wrote: | There's lots of ways to lie with surveys, I wonder what the | exact wording was and what the responses would be to variants | such as: | | 1. Do you want to be CEO of your own company or a peon | employee? | | 2. Do you want uber to set your hours? | | 3. Do you want medical, vacation days, or unemployment | insurance? | | For some people these are all basically the same questions. | For most folks, I don't think they are. | renewiltord wrote: | Very curious about this trend I've seen on HN where instead | of going to the primary source, commenters will take 2x the | time to hypothesize about what the primary source could | contain. | | In this particular case it was so easy that it really makes | me wonder. | | I can think of a couple of reasons: | | * Uncertainty with where in the primary source the content | is | | * Concern that you're being Gish Galloped with citations | | * Lack of skill at skimming | | Anyway, the source is particularly weird with the way it | links to things and stuff but it wasn't that hard to find. | I went through it and then decided to screen record the | interaction afterwards. It's my second time going through | but not that different from the first. | | Using headlines, pull quotes, and pictures as the things | I'm aiming for, I got there in 30 s. I think your comment | would have taken longer for me to have written than 30 s. | | https://gfycat.com/rashwholeindianjackal | mediaman wrote: | There's a psychological reward to having other people | read what you write, and possibly getting upvotes. | | This reward exceeds the reward from learning the actual | information. | | Many platforms are plagued by people more interested in | being heard than learning facts. | [deleted] | haberman wrote: | > When we polled drivers about their preference between | remaining an independent contractor or becoming an | employee, an overwhelming number of drivers wanted to | remain independent. | | > "What type of employment relationship would you like to | have with rideshare companies" | | > (A) I don't know the difference: 3.3% | | > (B) I'd like to be an employee: 20.8% | | > (C) I'd like to be an independent contractor: 75.9% | | https://therideshareguy.com/california-sues-uber-and-lyft- | fo... | [deleted] | kelnos wrote: | Is 734 out of a population of 80,000 a representative | sample? And even if it is, are the 80,000 people on their | mailing list a representative sample of all drivers? | | Not saying they aren't, but I... just don't know. | notafraudster wrote: | "Representativeness" has to do with the process of | sampling, not the sample size -- a sample of one is in | fact a representative sample of the population in the | sense of being unbiased for the quantity of interest. | | Here's a simple anecdote: suppose you want to measure how | often a coin comes up heads. The true answer is 50% | heads. If your "sample" is a single coin flip, the answer | will always be 100% or 0% (both wrong answers!). Maybe | you do this experiment and get 100% and I do it and get | 0%. But since the magnitude of the error will be the same | on either side, on average across many repetitions of the | experiment (this is called a "sampling distribution") | we'll get the right answer. | | What adding additional sample size does is reduce the | variance of the estimated statistic -- that is to say | reduce the degree to which the estimate of the parameter | moves around across samples. If I flip the coin 100 times | and you flip the coin 100 times, we're both likely to get | very close answers to one another. | | The bigger concern here is not sample size, it's whether | the sampling was random (it was not) and whether the | sample frame -- the population from which they were | sampling -- matches the population of interest (it does | not, as you suggest in your post, so your instincts here | are good!). | | There is very little reason to believe the people who | chose to reply to the email are as-if random with respect | to the question being asked. Rather, I would expect | diehards of RideShareGuy (who likely converge on RSG's | approximate editorial position on this issue) are more | likely to reply. There is also likely to be confounding | based on age, hours worked per week, geographical | location in the country, etc. | | There is also very little reason to believe | RideShareGuy's mailing list represents rideshare drivers | as a whole; again, selection based on age, tech savvy, | English competency, SES, geographic location, etc. all | likely to be confounders. | | If this were a classical random sample of a valid sample | frame, the parameter of interest would have a classical | margin of error +- 3.6%, which is small compared to the | overall story being told. This speaks to your concern. A | simple rule of thumb is that classical MOEs are +- | 1/sqrt(n) where n is the sample size. This comment is too | long so I won't get into the derivation here. | | I actually think this question presents a lot of | interesting problems for a survey statistician. In | particular, I would guess there is extreme subgroup | heterogeneity -- that is to say there are classes of | people who overwhelmingly want to be contractors and | classes of people who overwhelmingly want to be | employees. My guess would be that the population-wide | parameter is of little interest compared to identifying | those groups. If we discovered that, say, every person | above 40 hours a week wanted to be an employee and every | person below wanted to be a contractor, it'd be an error | to present a weighted average of the groups versus | exploring policy solutions that reflect that | heterogeneity. | LegitShady wrote: | The secret is that your status has nothing to do with what | you want but the terms of employment. It doesn't matter if | 100% of them want to be contractors the judge just ruled it | doesn't count as contractors by law. | | If Uber wants contractors they need to make sure the terms of | their employment follow the law, including classification. | CogitoCogito wrote: | Assuming that poll is representative of the drivers' will at | large, I guess then hopefully Uber and Lyft can satisfy these | drivers by following the regulations required for them to be | classified as independent contractors. | monadic2 wrote: | Exploitation does not just go away when you consensually sign a | contract. | | In any idea that these folks resemble independent contractors | in any way is bullshit. They can't set the rates of the rides | or that they give to Uber or Lyft. They can't set the basic | terms on when and where you accept rides. When someone doesn't | want to drive me across the bay, I can hardly blame them, but | they have no leverage to dictate their own employment except by | quitting. I guess these people end up accepting some kind of | opaque, kafkaesque punishment to their livelihood. Independent | my ass. | | Granted, single payer healthcare would ameliorate some of the | problems here, but it's very difficult to categorize the cut | that Uber or Lyft takes for the commodity service they provide, | protected by absolutely massive moats of capital, as anything | but exploitative. | tyre wrote: | For those wondering why Lyft and Uber doing the shutdown, it's to | bully voters into voting their way on Prop 22 in November. | | They had two years to adjust their businesses for a proposition | approved by voters. They chose to spend nine figures fighting it | in the press and the courts. | product50 wrote: | I hope you realize that AB5 will eventually make its way into | delivery services too. All those services will cost a lot more | then. Are you ready for that? Even if you are, have you thought | about low income earners and how they will cope up with this? | These are 2 sided marketplaces - just thinking from the | driver's standpoint, who mind you have also protested against | this since it robs them of flexibility, is missing the point. | | I really hope people vote for Prop 22 and kill this awful law | which was mostly brought in by unions/taxi drivers to have | their way around things. | apsec112 wrote: | AB5 was a legislative act, not a proposition. | handmodel wrote: | I mean - if no one else comes up with a business now that works | well and people enjoy doesn't that prove Uber and Lyft are | right in that the platform is valuable and unique? | | If California lawmakers are using this as negotiating tactic | that's cool with me - but I'm not sure why we wouldn't expect | Uber or Lyft to negotiate as well. | alpha_squared wrote: | > I mean - if no one else comes up with a business now that | works well and people enjoy doesn't that prove Uber and Lyft | are right in that the platform is valuable and unique? | | To me, it proves that investors don't have the appetite to | fund an underdog fight against the two large companies. There | _are_ ethical alternatives (at least half a dozen when I last | checked a couple years ago), but they 're slow-growing. The | fact that the conversations seem to default to assuming there | are no other alternatives already speaks volumes about | consumer mentality. | ztratar wrote: | They did not have "years to adjust their businesses" to a | changing landscape of demands, the worst-case scenario of which | literally destroys their innovation/business. | | "You had years to plan for us removing 95% of your business!" | is quite the argument. | AlexandrB wrote: | Their business was a legal dodge to begin with and they knew | it. You can't start a business selling cocaine through a | series of complex transactions such that it's "technically" | legal and then complain when the government tries to regulate | your "innovation" to bring it in line with existing law. | sushid wrote: | Freelancing is already a thing. This is a horrible analogy. | handmodel wrote: | While cocaine is illegal and most voters still think it | should be illegal, no voters think that calling a cab with | an app should be illegal (at least provided the driver is | compensated fairly). | tareqak wrote: | The article links the appellate injunction here: | https://appellatecases.courtinfo.ca.gov/search/case/dockets.... . | | I read the following section in it "Oral argument shall be | scheduled for October 13, 2020", but nothing about an October | deadline. | | Here is the relevant section in full. | | >> start | | On August 10, 2020, the trial court issued a preliminary | injunction enjoining Lyft, Inc. (Lyft) and Uber Technologies, | Inc. (Uber) from classifying their drivers as independent | contractors and from violating certain laws. Both Lyft and Uber | have appealed the order, and the trial court stayed the | injunction for ten days to allow them to seek relief in this | court. Lyft (in case No. A160701) and Uber (in case No. A160706) | have each petitioned this court for a writ of supersedeas. The | People have filed an opposition to the petitions. The petitions | for writ of supersedeas are hereby consolidated for purposes of | decision. The petitions are granted and the preliminary | injunction is stayed pending resolution of Lyft and Uber's | appeals, subject to the condition that, by 5:00 p.m. on August | 25, 2020, Lyft and Uber shall both file written consents to the | expedited procedures specified herein. If Lyft and Uber do not | both file such written consents, the stay shall expire at 5:00 | p.m. on August 25, 2020. | | The procedures are as follows: | | 1. Lyft's and Uber's appeals shall be consolidated. Lyft and Uber | may file separate briefs or combined briefs as they prefer. | | 2. Lyft and Uber shall proceed with an appendix in lieu of a | clerk?s transcript on appeal. (Cal. Rules of Court, rule 8.124.) | They shall cooperate to prepare and file a single combined | appellants' appendix, rather than separate appendices, which they | shall file no later than the date they file their opening briefs. | The appendix shall include a full copy of the index at the | beginning of each appendix volume, and the digital copy of the | appendix shall include pdf bookmark tabs for each entry on the | index. | | 3. Briefing shall proceed on the following schedule. The | appellants' opening briefs shall be filed no later than September | 4, 2020. The respondent's brief shall be filed no later than | September 18, 2020. The reply briefs, if any, shall be filed no | later than September 25, 2020. Absent unforeseen extraordinary | circumstances, there shall be no extensions. Oral argument shall | be scheduled for October 13, 2020. | | 4. On or before September 4, 2020, each defendant shall submit a | sworn statement from its chief executive officer confirming that | it has developed implementation plans under which, if this court | affirms the preliminary injunction and Proposition 22 on the | November 2020 ballot fails to pass, the company will be prepared | to comply with the preliminary injunction within no more than 30 | days after issuance of the remittitur in the appeal. | | 5. Should Lyft or Uber fail to comply with these procedures, the | People may apply to this court to vacate this stay. Unless | otherwise ordered, the stay will dissolve upon issuance of the | remittitur in the appeal. (Cal. Rules of Court, rule 8.272.) | | << end | | Hopefully, the above should help others here figure out where the | October deadline is coming from. | MangoCoffee wrote: | Isn't their business is based on "freelance"? if their taxi | drivers go full time. the business operation will be a lot more | with additional cost. | iaabtpbtpnn wrote: | They're lucky to have that judge. Uber and Lyft have consistently | flaunted the law with a basic attitude of "screw you, our service | is too popular, if you try to regulate us out of existence then | your constituents will be madder at you than us". But right now, | the service is not popular at all. I was a relatively heavy user | of Uber and I haven't even thought about calling one in months. | Food delivery sure, but I don't plan on using ride-sharing | services for at least another year... who wants to sit in an Uber | with a stranger, breathing each other's air? Who wants to DRIVE | for Uber, breathing strangers' air all day? Besides, there is | nowhere to go. No events, bars are all closed, etc. The ride- | sharing economy has just evaporated. | ojagodzinski wrote: | > who wants to sit in an Uber with a stranger, breathing each | other's air? | | XD There are countries (like any other country then US) that | have something called PUBLIC TRANSPORT. And people use is every | day regardless of pandemic. | | > The ride-sharing economy has just evaporated | | Uber is still much more "healthier" than public transport. | iaabtpbtpnn wrote: | I am posting from the Bay Area, we have public transit here | too. Not as good as other countries, but it's normally quite | popular. My girlfriend actually works for the transit agency. | And right now, let me tell you, they are completely fucked. | Ticket revenue is down something like 95%. Nobody wants to be | on BART or Caltrain right now. (Although it's worth noting, | here specifically the trains are typically used by people who | also have a private car that they could take instead if they | choose.) | leptoniscool wrote: | The state government blinked, and Lyft and Uber won | blakesterz wrote: | "Uber and Lyft say drivers prefer the flexibility of working as | freelancers, while labor unions and elected officials contend | this deprives them of traditional benefits like health insurance | and workers' compensation." | | I was curious about what drivers think. I guess they're not happy | [1] but want to be independent contractors still [2]. | | 1. https://therideshareguy.com/uber-driver-survey/ | | 2. (In a May online survey drawing responses from 734 Uber and | Lyft drivers nationwide, 71% said they wanted to be independent | contractors) https://www.wsj.com/articles/uber-lyft-ordered-to- | classify-d... | tedivm wrote: | That survey has been thrown around a lot, but there are a lot | of problems with it. A big issue is that the survey was | explicitly of people who follow a specific website (and | potentially align with that websites opinions). | | Another is that once you explain that California allows | flexible schedules even for employees a lot of people who say | they want to stay independent contractors change their mind. | The biggest thing that drivers want is flexibility in their | schedules, and there's a lot of misinformation saying they'd be | required by law to sign up for shifts if they were employers. | Once you correct for this FUD and drivers realize their | favorite part of being a contractor isn't at risk anymore the | answer seem to shift quickly. | | Even if it was true though- most people who work at sweat shops | are happy to have the job because they need the money. That | doesn't mean that it's right to allow crappy conditions for | them. | [deleted] | square90 wrote: | This reminded be of the Planet Money episode on long-haul truck | drivers [0]. It's a similar contractor v. employee (company | driver) scenario. Not a happy story, unfortunately. | | [0] https://www.npr.org/2020/08/10/901110994/big-rigged | hammock wrote: | >I was curious about what drivers think. I guess they're not | happy [1] but want to be independent contractors still [2]. | | If the employers don't want the change... | | and the employees don't want the change... | | and the customers don't want the change... | | and the shareholders don't want the change... | | and the residents of California don't want the change | (exhibited by the threads yesterday with outcry over the | decision to shut down)... | | Why is the government of California trying to force the change? | Is this a breach of the social contract? | [deleted] | coldpie wrote: | I'm not a resident of California (rather, Minnesota), but I | do want it to change. I don't use gig services because I | think anyone doing 40[1] hours of work deserves a wage they | can live off of, along all the other employment protections | we've worked so hard to implement. Gig services are cheap | because they don't meet that requirement. If gig services | were required to meet that minimum wage and workers' rights, | then I would be very happy to use them. | | [1] Negotiable. | orangecat wrote: | Serious question: is your main complaint the low pay, or | lack of benefits? If Uber increased pay to an average of | $30/hour after expenses but still treated them as | contractors and told them to buy their own health | insurance, would you be ok with that? | coldpie wrote: | Both. I'm not an employment law expert, but things like | mandatory breaks, working conditions, PTO (pa/maternal | leave, etc.). If you work a full time job, you are | entitled to a comfortable life with a healthy work/life | balance. | orangecat wrote: | Am I misunderstanding, or are you saying that freelancing | and independent contracting should not be permitted under | any circumstances? Is there no sufficient amount of money | where you'd acknowledge that workers are not being | exploited in a fee-for-service structure? | | And what about small business owners, who effectively | have zero paid leave or vacation? | coldpie wrote: | > are you saying that freelancing and independent | contracting [and small business owners] should not be | permitted under any circumstances | | It's a good question and I'm not sure. I think my answer | is some weak form of "yes." My goal is to enforce a good | work-life balance, I think society benefits from a | healthy workforce. So they wouldn't be impermissible per | se, but they should meet those same requirements. | However, obviously that's really hard to enforce for a | contractor type situation, and some people genuinely | thrive in their jobs in a healthy way. So, I don't know | what the right balance is. I believe France has some | mandatory maximum work hours regulations. Those might be | interesting to look into. | | I know some will argue this point, but I really do think | it's clear that gig workers don't fall into those two | categories, regardless. The power dynamics are totally | upside-down between traditional independent contractors | and SBOs, and Uber/Lyft drivers. | yibg wrote: | You've lost me now. You've gone between multiple topics | and I don't really understand what your stance is. Are | you saying: | | - There should be a limit on number of hours worked | (regardless of type of employment). | | - Everyone should be an employee, and not a freelancer or | otherwise independently employed | | - Everyone should get benefits | | Or all 3? Those are all to me at least independent | things. You can have work hour limitations as a | contractor or you can be an overworked employee. | dgellow wrote: | > So, I don't know what the right balance is. I believe | France has some mandatory maximum work hours regulations. | Those might be interesting to look into. | | I never thought I would see the French system pointed to | as a potential example. If you're talking about the 35h | week keep in mind that it is a really contentious topic | there! | yibg wrote: | Do you also not eat at small independent restaurants? The | owners also don't meet the same requirements, and in many | cases make even less than uber drivers. | ericd wrote: | And where does that "enough money to live off of" come | from? Unless the company has a lot of fat to trim, it has | to come from customers in the form of higher prices, or | from investors throwing more cash onto the bonfire. What | happens when customers would rather not use your service | than pay the amount whatever you're proposing takes? | | It's very possible that this market only exists at the size | that it does at a price that doesn't support what people in | the US think of as "a wage they can live off of", and that | by mandating more compensation, then there will be a whole | lot of drivers for whom this just isn't an option anymore. | | That said, I think drivers should be able to set their own | prices, and that there should be a real market with | bidding, but the UX will probably suffer. | SahAssar wrote: | > It's very possible that this market only exists at the | size that it does at a price that doesn't support what | people in the US think of as "a wage they can live off | of", and that by mandating more compensation, then there | will be a whole lot of drivers for whom this just isn't | an option anymore. | | And that's different from many other hypothetical | services how? If we accept that the floor should be | lowered it should be for everyone, and if we don't it | shouldn't. It should be an even playing field, not | something where some companies slip through by not | employing their workers. | coldpie wrote: | > Unless the company has a lot of fat to trim, it has to | come from customers in the form of higher prices, or from | investors throwing more cash onto the bonfire. | | Nope, there's lots more options than that. Cut executive | pay. Tax high earners more and provide social services | like healthcare and public transit, to reduce cost and | demand on these services. And yes, prices would likely go | up, because they're no longer being subsidized by gov't | welfare. | | > It's very possible that this market only exists at the | size that it does at a price that doesn't support what | people in the US think of as "a wage they can live off | of" | | Then the market is exploiting labor and is being | subsidized by the welfare system (else the workers | couldn't live, by definition). If we're going to | subsidize unprofitable activities, we should do that as a | society, not by funneling cash to Uber's owners. | shuckles wrote: | The highest leverage way to help low income people in | California is by focusing on reducing the cost of being | alive. High barriers to earning money will just continue | the decades long out migration of low income workers. | ksdale wrote: | If you don't use gig services, will the gig workers become | employees and make more money? Isn't it just as likely that | the services will go away and the gig workers will not have | a source of income at all? | gruez wrote: | >and the residents of California don't want the change | (exhibited by the threads yesterday with outcry over the | decision to shut down)... | | but didn't they also vote in favor of AB5? I'd take a | referendum result over a non-uniform sampling of people's | opinions. | | edit: nevermind. AB5 wasn't a referendum, so citizens | actually didn't get to vote on it. | granzymes wrote: | No, the referendum is this November (prop 22). | [deleted] | dnr wrote: | I think the idea is that we're in a local maximum for "how | good is the current arrangement for society as a whole". Any | small change to the arrangement is going to make things worse | for one party or another, and probably even make things worse | for society as a whole. But there's a chance that a bigger | change could get us to an even higher maximum, where everyone | is better off, both individually and on net. | | It's hard because you can't just jump there, there will be | some people or entities that are worse off during the | transition. Also there are unintended consequences so things | might not go as you expect. | | Usually to (attempt to) make changes like this, it has to be | a government doing it, because it's a coordination problem | and you have to force people to look past their short-term | self-interest for a little while. | smallgovt wrote: | > (In a May online survey drawing responses from 734 Uber and | Lyft drivers nationwide, 71% said they wanted to be independent | contractors) | | As others are mentioning, the survey was very simplistic and | most drivers don't understand the full ramifications of AB5. | | That said, I still think the majority of fully-informed drivers | would vote against AB5. | | Enforcing AB5 will very likely result in: 1) substantial | increase in benefits 2) slightly lower base pay 3) half of | drivers losing their job 4) scheduled shifts. | | My guess is #3 is the biggest issue for most drivers. | chasd00 wrote: | If the people affected are against the law then how did it make | it to a vote, let alone pass? that blows me away. | mindlar wrote: | California is a single party state with a supermajority of | delegates. This means that Democrats can pass pretty much any | law that they want without any real opposition. | | The unions in California are unhappy with Uber/Lyft employees | not being union members since their presence is an | alternative (read danger) to some of the unions | (teamsters/taxis). Unions have a lot more power with | Democrats since they are some of their biggest supporters, so | the legislature tends to do things that benefits unions. | | Since California is effectively a single party state, the | legislators that voted for this don't need to worry about | things like being reelected because they are unlikely to | actually see real opposition outside of a primary challenger. | tathougies wrote: | Exactly what the poster said. California is a single party | state. There is no choice in most elections. Due to the way | elections work, you're usually choosing between democrats | who believe the same thing. There is no dissent. | Skunkleton wrote: | > ...Uber drivers reported earning $13.47 per hour, which means | that on average, drivers report that their car is costing them | over $6 per hour to operate. | | If you were to drive full time, that would get you about | 27k/year, which is about the average income that a taxi driver | makes. Rideshare companies are asking you to take more personal | financial risk than you might as a taxi driver, but giving you | more flexibility. | | Still 27k/year is not much money really anywhere in the | country. I think this is a symptom of some major underlying | problems with our economy rather than an indictment of the | rideshare industry. If we can't afford to pay drivers a living | wage to do their work, then the people who are using these | services aren't as well off as they think they are. | jluxenberg wrote: | Tangent: | | $6/hr sounds a bit low; actual costs are probably higher. | | The IRS standard mileage rate (the amount you can deduct from | your taxes for each mile driven) is $0.58/mi | (https://www.irs.gov/tax-professionals/standard-mileage- | rates) | | $6/hr operating costs means the driver is driving a max of | ~10mi/hour, if costs to operate are in line with IRS | guidelines. | bpodgursky wrote: | The IRS deprecation is very far above the costs in actual | practice. It's a very conservative number. | jluxenberg wrote: | I think the IRS number might be spot on. | | Quick math: ($25,000 cost to buy car new | - $4,000 residual value at end-of-life ) | / 100,000 miles usable lifetime = $0.21/mi | depreciation of value $3.22 / gallon * (1 / | (17 mi / gal fuel efficiency)) = $0.19/mi for | fuel Maintenance: $40 per oil change | / 8,000 miles = $0.01 / mi $600 tire change / | 60,000 miles = $0.01 / mi $1,186 average yearly | repair / 16,000 average miles driven = $0.07 mile | | That all adds up to $0.49 / mi and does NOT include | insurance and DMV registration fees. | beached_whale wrote: | I was talking to a taxi dispatcher at some function here in | Canada, and it came up that each vehicle on the road would | drive about 500km/day. That's about $200-$250/day in what | the per distance rate many employers give out(40C/-50C//km) | for fuel and wear on vehicle. But assuming an 22hrs of | driving a day(on a taxi with multiple drivers), that's | about 22km each hour or $11/hr for fuel and wear on the | vehicle according to what many employers would pay in | addition to time driving. This is in Canadian dollars, so | $11/hr is about $8/hr in USD and works out to an average of | $16USD/hr of driving(assuming (22km|13miles)/hr average) | Skunkleton wrote: | TCO for a Prius is about 6k a year for non-rideshare | applications. The link has this cost around ~13k per year, | which isn't outlandish. I think you are right in general | though. Uber will let you drive an F-350, but there is no | way you will make money with it. | Hamuko wrote: | I wouldn't be surprised if drivers are underestimating | their costs. The true cost of vehicle ownership is rather | murky and I doubt many of these drivers are self-taught | accountants. | jeffbee wrote: | That's why the driver attrition rate is so high and | Lyft/Uber have to constantly run driver recruitment | efforts in mature service areas. After the driver ruins | their original car in less than a year, they quickly | realize the true operating costs. | | Say what you will about the taxi business but at least | taxi drivers knew that the gate fee on a leased vehicle | was $100/day. | JumpCrisscross wrote: | > _Rideshare companies are asking you to take more personal | financial risk than you might as a taxi driver_ | | At least in New York, the drivers carry all the risk. They | pay for insurance and gas and damages and time (so they take | risk of not getting fares). | asdasfasdfasdf wrote: | "personal risk" | | This is kind of the state of the country really. Ridesharing | is an OK gig until you get into an accident, you're fine | without health insurance until you get injured, you don't | really need a union until you start getting treated unfairly, | you can pay for college as long as you consistently have a | good salary... we're being statistically gaslit with the idea | that most people can scrape by without higher wages and | better general protections. | macinjosh wrote: | I think you're gas lighting us by ignoring the fact that | this personal risk is taken at personal choice. If someone | wanted the arrangement that comes with an employee/employer | relationship there are jobs that offer that. But not | everyone wants that, some people prefer, for their own | reasons that are really none of your business to be an | independent contractor. This is about choice plain and | simple. | vore wrote: | Not everyone has that choice, which is why so many people | depend on gig economy jobs as their livelihood. | | If you do not have in-demand skills for the market, have | a family to feed, and the cost of training exceeds your | expenses, Uber/Lyft might be one of your only job | options. | RangerScience wrote: | We make choices within contexts other people create. | macinjosh wrote: | And your solution is to take away more choices from | people? | asdasfasdfasdf wrote: | Do you think people are really walking around thinking "I | don't want health insurance because I prefer being | destitute in the event of an injury"? | EllyFant wrote: | Yes, we've removed lots of choices. | | Like for example, it's illegal to sell yourself into | slavery or indentured servitude. That's a choice you are | not legally allowed to make. | Klinky wrote: | The solution is to ensure the worker's employment status | is within the legal definition as it's defined. Gig | economy could usher in a new era of worker flexibility, | but it could also usher in a new era of worker | exploitation. | | The gig economy keeps pushing risks and cost down the | chain, while also showing signs that it may not be a | sustainable model as a whole without venture capital to | burn through or an end game of predatory monopolist | behavior within the market region. | Dylan16807 wrote: | The choice to not have important types of insurance hurts | the chooser and it hurts everyone else. | | There are many situations where it's best if the societal | bargain restricts the options available. | Daishiman wrote: | Personal risk isn't an isolated thing. Thousands of | people taking personal risk have systemic effects, and | these companies aren't paying into it, even though | everyone around these "risk-takers" suffer the | consequences. | macinjosh wrote: | > Thousands of people taking personal risk have systemic | effects | | How do you know the personal situation of each of | Uber's/Lyft's drivers? How do we measure risk for each | person in an objective way? Some people might be at no | risk, some higher. We can't know! What right is there in | taking away options that benefit some people because it | might possibly not work well for someone who voluntarily | signed a contract? This is not liberal policy. This is | paternalistic, state-controlled economic oppression. | InitialLastName wrote: | > Some people might be at no risk, some higher. | | All rideshare drivers are (by definition) participating | in the most dangerous activity (western) humans do on a | daily basis. Every non-utilized minute they spend on the | road adds risk to them as well as to other members of | society. | Daishiman wrote: | The fact that in most places in the world there's | legislation that defines requirements and | responsibilities for professional drivers, from | qualifications, to insurance, alcohol intake, maximum | working hours, minimum rest hours, etc., Implies that it | totally does exist. | matmann2001 wrote: | I think you're gas lighting us by ignoring the fact that | these types of choices aren't fully unconstrained. People | aren't assuming this risk because they prefer to, but | rather they have limited choices available to them given | their resources and background. | macinjosh wrote: | > but rather they have limited choices available to them | given their resources and background. | | So let's take one more choice away!? Not every person | looking to make some money is looking for something with | as much commitment as employment. Not every business | needs people to work according to their schedule at a | specific place. While you think you're giving full-time | employment and benefits to all of these people what | you're really doing is taking certain kinds of | opportunities away. | asdasfasdfasdf wrote: | >While you think you're giving full-time employment and | benefits to all of these people what you're really doing | is taking certain kinds of opportunities away. | | This is some of the most phenomenal bullshit I've ever | read. | | There's nothing stopping Uber and Lyft from allowing | people to work their own hours and also giving them | benefits if they meet hourly qualifications. | | You're talking about people making <$30k a year while | shouldering most of the risk and using their own cars as | if they're shopping around for the best FAANG salary. | username90 wrote: | > There's nothing stopping Uber and Lyft from allowing | people to work their own hours and also giving them | benefits if they meet hourly qualifications. | | There is, if the driver drives in bad hours making their | income not come up to minimum wage uber would be forced | to pay the driver anyway. In order to avoid this uber | would be forced to limit when and where people can drive. | | Being an employee means that the company has to ensure | that the employees time is well spent so that it is worth | the minimum wage and benefits at least. Being a | contractor means that the contractor himself is | responsible for what he is doing is profitable enough for | him to live on. So changing them to employees means that | now uber has to ensure every driver only drives when it | is profitable for uber. | | So everyone who wants to handle this responsibility | themselves don't want to be an employee. | matmann2001 wrote: | Yes! If the free market results in employers offering | shitty choices that take advantage of workers with | limited options, the government should step in and | attempt to correct the power-imbalance that puts the | workers at life- and liberty-threatening disadvantages. | | Extrapolating from your logic, indentured servitude would | still be allowed to exist. | asdasfasdfasdf wrote: | When's the last time you've worked a minimum wage | contract job? At that level of employment you're not | exactly shopping around for better offers. | | Uber and Lyft can offer benefits to contract workers. Do | you think they don't because they want to give people the | right to choose? | sampsonitify wrote: | And what does welfare pay? Serious question as I'm not in the | USA and have no idea. | | If Welfare pays less, isn't Uber/Lyft a positive thing? | | And that is just the direct monetary benefit of $27K vs | welfare. There are many intangible benefits to work vs | welfare beyond money. | | Being unemployed has mental health and life satisfaction | costs (summary: https://marginalrevolution.com/marginalrevolu | tion/2019/04/is...). This is research that has existed for > | 30 years. | | There is significant evidence that long term unemployment | REALLY hurts someone's hiring chances when applying for a job | (see https://marginalrevolution.com/marginalrevolution/2013/0 | 4/co... from 2013 with linked papers). As a stepping stone to | a living wage, driving rideshare likely helps people looking | for better paid work, especially given you can clock off for | two hours to take an interview, then clock back on. Try that | working any other job. | | The rideshare side of the ledger has better mental health & | life satisfaction, more money and better job prospects, vs | the welfare side with more free time. | | I'd prefer to frame the "living wage" question as of all the | people who drive Uber/Lyft, not Uber/Lyft drivers which puts | their job above their humanity and implies it is a permanent | state of affairs, anyway of all the people who drive | Uber/Lyft at some point in their lives, will they be better | off with the option of driving Uber/Lyft, or better off in a | world where Uber/Lyft is not an option? | gruez wrote: | >There is significant evidence that long term unemployment | REALLY hurts someone's hiring chances when applying for a | job (see https://marginalrevolution.com/marginalrevolution/ | 2013/04/co.... from 2013 with linked papers). | | But in the study linked, they're really testing whether a | resume gap hurts your chances of getting hired. I'm | skeptical that it would translate the same to gig economy | job, given you can't ask them for a reference, nor is there | any indication of how much you worked (did you work 40 hour | weeks? a few hours a week?), or how reliable/timely you | were. | hammock wrote: | Who says driving for Uber/Lyft should be a full-time job, or | statutorily viable as a full-time job? If you consider it | only as a second or third job, then it makes a lot more sense | that your second or third job is not going to pay as well or | have the same benefits as your first job. Those aspects would | be expected and reasonable. The low-risk, high-reward jobs | fill your primary job slot, then you seek other options as | needed. (After all, if it was any different, you might quit | your first job and drive for rideshare instead) | jon-wood wrote: | That you don't bat an eyelid at people needing a second or | third job to make ends meet is in itself an indictment of | the general state of the US. | the-dude wrote: | I was amazed at the series _Breaking Bad_ , that a | teacher would take a summer job to make ends meet. At a | carwash no less. | | I have brought this up here before and got all kinds of | justifications : he has a big house, he has a special | needs kid. | | I don't think there is any teacher in NL taking summer | jobs to make ends meet. | macinjosh wrote: | Why is it necessarily better for someone to have a single | job verses multiple gigs? Not everyone wants to be a | shift worker or office drone. Its just an implementation | detail of the economy not some sort of indicator of a | problem. | chrischattin wrote: | Who said they needed the extra gig to make ends meet? | Some people might just enjoy it, or want to earn a little | extra during their free time, or have a seat open on | their commute. | | To view temp/gig work with a full-time lens is | disingenuous, imo. | [deleted] | jeffbee wrote: | This is just repeating TNC company propaganda. _Nobody_ is | saying this has to be a full-time job. Many, many people | work part-time jobs and they are all employees of their | workplace. Many of these people also have second part-time | jobs, where they are also legally employees of the second | company. | skybrian wrote: | What happens in practice is that people try to make ends | meet with two or three crappy part-time jobs, because | that's all they can find. | | (Insert plug for UBI here.) | Skunkleton wrote: | You can't really compare yearly salaries unless you pick | something to standardize on. You will notice that I didn't | pick on benefits at all. I would guess that the reality is | most people depending on rideshare for a living are doing | multiple jobs. | gmadsen wrote: | if only the people who were driving as an addition to their | primary job, uber would be severely hampered. the ease of | access and response is predicated on full time uber drivers | orclev wrote: | Our economy has become so overwhelmingly top heavy that the | majority of the population is losing the ability to take part | in it. The middle class used to be the mean income, but these | days the mean has drifted so far from the mode that the | distinction between middle class and lower class has all but | vanished. Just taking a brief look at the 2014 census | numbers, the mode income was centered around $22,000 a year | while the mean was $75,000. Let that sink in. The largest | percentage of the US population makes less than $25,000 a | year. | macinjosh wrote: | This information is only useful if it is contrasted against | the number of people who want/need/are able to work. People | like the retired, teenagers, stay-at-home parents, college | students, etc. all may make some small amount of income | each year but generally speaking don't work full time. This | isn't evidence of people struggling. It is evidence of | people exercising their personal rights which include not | being a worker. | orclev wrote: | You're suggesting that the retired, teenagers, stay-at- | home parents, and college students make up the majority | of the US working population? Yeah, not buying that one | at all. The US economy is fucked right now, we've been | madly spinning the plate to try to keep it going, but | it's starting to wobble badly. Unless something major is | done soon it's only a question of when not if things | start to implode. | macinjosh wrote: | > You're suggesting that the retired, teenagers, stay-at- | home parents, and college students make up the majority | of the US working population? Yeah, not buying that one | at all. | | No where did I say this. What are you talking about? | orclev wrote: | My point was that the mode income, that is the income | reported by the largest number of people was incredibly | low. You claim that's because there are a bunch of people | that don't really need/want to work, so they don't make | much. That implies that that group represents the | majority of the working population (in order to be the | mode income). You're point might have been correct if we | were talking about the mean income being very low, but in | this case it's exactly the opposite. | spurdoman77 wrote: | "I guess they're not happy [1] but want to be independent | contractors still [2]." | | Any normal employee or freelancer is not happy, but still goes | to the job because there are bills to pay. It is normal to want | things to be always better but low skill jobs are not going to | be goldmines no matter what the regulation says. | overgard wrote: | I honestly don't mind paying more if it goes to support the | drivers, but I haven't really seen a compelling argument for why | all drivers should count as employees. From my perspective being | an "employee" implies certain things that don't seem to apply | here (predictable work times, exclusivity (so many lyft drivers | are also uber drivers), etc. ) "Freelancer" seems way more | appropriate, the only problem is the lack of protections. It | seems to me that culturally "gig worker" has become its own | category anyway and it makes more sense to create a new legal | category with its own set of legal protections. | | I know people will point to health insurance... but that's a | separate problem with having health insurance tied to employment. | I think it's awful that people that aren't considered full time | employees don't get health insurance.. but I also think that's | the government's problem and obligation, not Uber or Lyfts | CharlesMerriam2 wrote: | Recognize that more reasonable solutions exist, for example, | modifying AB5 exempting anyone pulling in >$50K ($25/hour for any | hour available or logging into the app). | | Propositions, being like an unchangeable binary library, are | 'take-it-or-leave-it' laws. | umvi wrote: | So basically "if you are poor you can't use Uber/Lyft you would | exploit yourself out of desperation. Go find a different job | that pays a living wage/benefits. If you are middle class and | already making enough to live on, that's cool you can use | Uber/Lyft to supplement your income since you won't abuse | yourself trying to make the platform sustain you." | timavr wrote: | Love how they fight for drivers rights and working real hard to | replace them with self driving fleet. | omot wrote: | What really irks me about this whole thing is how Uber Eats and | Door Dash is unaffected by all this. Delivery workers have almost | exactly the same paradigm, but I guess they're not enforcing it, | because of the number of restaurants, drivers, and eaters that | will be affected? | kreutz wrote: | Why not let the market decide? If drivers are so unhappy why not | just seek some alternative form of work? Uber/Lyft do not force | anyone to hop online. | yannyu wrote: | The market is not fair. People have to eat, and will look for | whatever job that can get that will help them eat and provide | for their families. | annexrichmond wrote: | Yeah and what if they won't have a job at all because | Uber/Lyft suddenly became too expensive for anyone to use? | | If the costs increase dramatically, demand goes down and thus | fewer drivers needed, as people look at alternatives like | getting their own car, public transportation, bikes, etc. | tetrometal wrote: | I genuinely don't understand this position. I don't see how | replacing a "bad" option with _no_ option helps anyone, | especially the people that were willing to take the "bad" | option. | babypuncher wrote: | If the economy cannot support enough reasonable paying jobs | with adequate health insurance, then the answer is to re- | think how the economy works, not create more garbage jobs | that earn miserable livelihoods. | | If we did things like abandon employer-subsidized | healthcare for a modern single payer system, then maybe it | wouldn't be so disadvantageous for drivers to be classified | as contractors. | tetrometal wrote: | > If the economy cannot support enough reasonable paying | jobs with adequate health insurance | | I don't see why anyone other than the person doing the | work gets to define what "reasonable" or "adequate" is. | It also seems completely heartless to me to put people | out of work in order to push a political agenda. | tathougies wrote: | Great, let's rethink how the economy works. AB5 does not | do that though. It is actually a return to historical | norms (in that it mandates foisting the institution of | employment on something that is wholly new). AB5 is an | incredibly conservative bill seeking to return to the | pre-uber status quo. It is not a 'rethinking of the | economy'. | randyrand wrote: | banning prostitution is the best example of this dumb line | of thinking. If they could do something better they already | would be doing it. Replacing a "bad" option with "no" | option does not help them. | crawlcrawler wrote: | Prostitution should not be an option for anyone. | | How is: | | "I was so poor I had to sell my body so as to not starve | to death but selling my body made me depressed and so I | spent all my money on drugs leaving no money for food, | throwing me into a life of starvation." | | ...better than: | | "I was so poor I could not buy food." | | ...really? | jayd16 wrote: | The missing link is that you're raising a false dichotomy. | Its a sliding scale of profit margin. Instead of bad or | none, the choice is more low paying options or fewer higher | paying options. Some will receive higher wages, while some | opportunities will not be available. | | Both sides believe the net benefit backs up their stated | position and there's very little compelling data one way or | another. | [deleted] | tetrometal wrote: | I'm not so sure how false it is. If there were a better | option, wouldn't people be using it already? And since | they're not, aren't we just... firing them and leaving | them to figure it out? Seems heartless. Honestly it comes | across as "F the little guy, give me the policy I want." | (I'm not accusing you of that, your tone came across as | quite polite.) | JMTQp8lwXL wrote: | That's a non-existent binary. There are plenty of other | options, including regulating rideshare companies to ensure | drivers are paid a living wage. | ccktlmazeltov wrote: | the option is to provide the infrastructure for the market | to figure out, but you need some baseline first, and we | don't have that baseline. Decouple healthcare from having a | job and you're already halfway there, like the rest of the | world. | throwaway0956 wrote: | This is like complaining to the landlord that your AC | doesn't work and the landlord saying "Fixing is not an | option. We need to stop Global Warming so that the | temperatures stop going up first." | yoz-y wrote: | The goal of regulation is to stop the race of the bottom at | some point. | ReaLNero wrote: | Is it? By regulating, you'll just create an artificial | shortage. | | This is microeconomics 101. | | If you _have_ a competitive equilibrium, you can 't | improve the situation for consumers and producers by just | regulating prices. | johndevor wrote: | > The market is not fair. | | What's your definition of "fair"? | whb07 wrote: | No such thing as fair in life. So why have some bureaucrat | write laws to dictate fair based on their politics? The | market isn't political. | | Having said that, Uber drivers exist because it does provide | enough money to have people show up and provide a service. If | it didn't, no one would do the driving. Not to mention most | drivers don't want to be considered employees. | node-bayarea wrote: | I see the democrats downvoting this. Unfortunately, this is | the world we live in! | bananabreakfast wrote: | This is a pretty absurd argument to make when the alternative | is quite literally these jobs not existing at all as almost | just happened at midnight tonight. | jayd16 wrote: | Uber and Lyft shutting down is posturing. I find it quite | hard to believe taxi services will become impossible and | not simply a bit more expensive. | ccktlmazeltov wrote: | alternative is to provide healthcare as a human right? | kreutz wrote: | Healthcare should be provided as a human right but this | is not accomplishing that. | unionpivo wrote: | This jobs will exist one way or the other. If uber is out | taxis(or some other third party) will pick up the slack. | supergirl wrote: | it's not that simple. by that logic you could say eliminate | minimum wage and any other legal employee benefit. companies | are in a position of power so they must be regulated | bhupy wrote: | Sure, status quo policy isn't gospel, and a minimum wage | isn't necessarily the best solution to the problems it aims | to solve. | supergirl wrote: | it's the best because it was chosen by the people of a | democracy (more or less). if it's not good they can change | it | bhupy wrote: | The democratic process has been known to produce sub- | optimal results. The only way to correct those results is | to criticize the status quo. This is all part of the | democratic process... | epicide wrote: | Because a lot of drivers start driving because they already | can't find an alternative form of work? | | Or they already have another job (or several) that does not pay | enough. However, they can't find yet another job with flexible | enough hours. | | When the job market is garbage, "just let the market solve it" | doesn't really cut it. | jwilber wrote: | But Uber/Lyft have nothing to do with the job market being | garbage. If anything, they provide options to help ameliorate | the situation. | | Instead of the government playing court for something nobody | wants, maybe they can do their job: set an an appropriate | minimum wage, ensure better safety nets so people don't need | 3 jobs, provide better options to employers so jobs aren't | lost, etc. | kreutz wrote: | I don't think the job market being garbage is Ubers problem | to solve. If the job market was flourishing drivers would | still be "unhappy" with their experience on these platforms | and AB5 would likely still be a thing. Uber offers a | convenience. I think drivers like that convenience so much so | that it prevents them from seeking traditional employment and | leads them to want to fit a square peg into a round hole. | rfrey wrote: | There was a time, not very long ago, when people "chose" to | send their 12 year old children into dangerous factories for 12 | hours a day. Government rightly restricted corporations from | offering that option to desperate people. | throw_m239339 wrote: | Why not let the drivers decide whether they want to be | contractors or employees as well? | | > Uber/Lyft do not force anyone to hop online. | | Yeah, let the drivers eat cake, hmm? | asdasfasdfasdf wrote: | The employer has dramatically more power in the free market. | Especially when backed by endless piles of VC money. | | Remember that the free market didn't end child labor, create | weekends, or the minimum wage. | Aarostotle wrote: | It only enabled the technological foundations to do all of | the above. | rrose wrote: | none of those things required technology. pre-industrial | society would not have collapsed if laborers had weekends | and a minimum wage | node-bayarea wrote: | How do you know that? Because of industrial revolutions, | minimum wage and stuff was even thought about and | eventually implemented! Without industries that afforded | that, these social policies would have totally collapsed! | chillwaves wrote: | Society seems to be progressing just fine with a min. | wage and weekends off. | Trias11 wrote: | Because markets and private sector can never be wiser than | politicians, especially CA politicians. | itslennysfault wrote: | > Why not let the market decide? | | Because we're not monsters. | yibg wrote: | What does that even mean? We're monsters for giving people | choice? | jayd16 wrote: | The market has previously decided unsafe factories and | child labor is ideal. Often market forces are great but | empirically they do not solve every case and as a society | we must evaluate each case accordingly. | yibg wrote: | the hypothesis is being an employee is better for the | workers, and if so it's something they'd willingly choose | if given the option. The current data says that's not the | case, but would be an interesting experiment. If given | the choice of the current setup vs one of being an | employee, what would drivers choose. | ribosometronome wrote: | Cocoa for chocolate, materials for phones, etc show that | the market continues to be just fine with practices like | child slavery. Alternatives may exist but most companies | are still "striving" rather than there. | chillwaves wrote: | What does "let the market decide" mean except let the poor | be at the mercy of the rich? | lsiebert wrote: | Because collections of people organized into corporations have | greater bargaining power than individuals in negotiations. | | Traditionally the answer to that is unions or professional | group who can bargain on behalf of all their members, but it's | hard to unionize fields with low barriers to entry (and harder | when the workers are living paycheck to paycheck and thus can't | strike easily), and impossible to unionize independent | contractor drivers based on how the laws are written. | Ericson2314 wrote: | Where have you been the last 200 years? | | The market is great at optimizing certain imbalances, but a | large scale imbalance of power between actors is not one of | those imbalances. | ccktlmazeltov wrote: | You can't let the market decide because the market is doomed | (in the treating-people-as-human-beings sense) by the lack of | infrastructure in the first place: | | - no healthcare means you're a slave of whatever you can find, | | - tipping culture means your employer can pay you shit | kreutz wrote: | They can find work elsewhere then? | compycom wrote: | Unless you are entrepreneur with access to capital, I'm not | sure how you can expect individuals to will a good employer | into being if none is to be found. Using the government to | create better conditions for the working class is a | completely reasonable use of the political process. | kreutz wrote: | Right here: https://sfbay.craigslist.org/search/jjj | usaar333 wrote: | Why aren't they doing that already? | kreutz wrote: | Because Uber is easier. | TeaDrunk wrote: | Didn't we already go through this line of reasoning during | the industrial revolution? Didn't we already have our | muckraking moments to show exactly why this line of | reasoning is full of assumptions, totally devoid and | dissociated from the actual reality of people's lives? | kreutz wrote: | Where do people go if Uber does not exist? | TeaDrunk wrote: | You literally just linked a craigslist job listing to | show indeed that uber is just a choice and they can take | great jobs elsewhere. | tathougies wrote: | Given that the industrial revolution in retrospect has | clearly improved the lot of the entire world, comparing | uber to the capitalists of the industrial revolution in | attempt to castigate them is actually quite laughable. | chillwaves wrote: | Those industrialist were doing a great job of putting | children in factories! | eitherisarb99 wrote: | The market is just people and they decided not to openly revolt | against government, tacitly approving it doing the work it's | long done of lifting up the bottom of society no one else wants | to invest in. | | The majority is not high tech types, nor does it need to aspire | to be. | | How do you separate this all from physical reality so easily? | | Economics is not physics. The math is defined by biologically | biased humans. Physical reality works how it do regardless of | the syntax you want to emit about sound economics. | | You really are just asking questions that have been debated | forever. The answers haven't changed. The narrative you would | choose to recite isn't the same as many others. And westerners | aren't a literal majority | compycom wrote: | Capital has an immense amount of leverage in the market, and | the only way for that power to be counteracted at scale is | through government action and/or labor organizing. Individuals | can't will a reasonable employer into being on their own. | babypuncher wrote: | Free market economics does not and should not apply to labor. | These are people, not barrels of oil. | Ericson2314 wrote: | I'm sad that here was a rare chance that people voted on | something, and the effects of the vote would have been palpable. | | We'll have scare tactics, stays, negotiations, changes to the | bill, etc., all leading to a complete lack of shock and awe. | People will not pay attention, and continue assume the effects of | votes is nothing. And I wouldn't want to convince them otherwise. | | To be clear, this comment doesn't assume people actually want | Lyft to leave. Whether people are thrilled or filled with regret, | it doesn't matter. I just want them to feel the power of a vote. | | :( | ffggvv wrote: | I'm not sure why we need prop22 specifically targeting rideshare | drivers instead of just repealing AB5 | | i know so many people's whose jobs were destroyed by it and still | haven't found anything else. | usaar333 wrote: | Didn't AB5 just codify a court decision and in some sense | actually exempt people from being employees? | wskinner wrote: | Can you share the professions of the people you know whose jobs | were destroyed? | victorvation wrote: | Freelance writers, both bloggers as well as longform | investigative journalists. | ffggvv wrote: | one was a contractor for a company that did content | moderation/fact checking on a big tech website. when ab5 was | passed they predictably laid off everyone in california. | | others include freelance writers, and other online work | renewiltord wrote: | Upwork sent around a "Don't worry about AB5" email but I'm | not taking chances. Just ended everything with Cali | contractors. | ffggvv wrote: | yeah i mean frankly speaking it's just not worth the risk | to hire someone from ca given the law. it's not like ca | employees provide anything special over other state's | that would justify paying them more for low skill jobs | that can be done remotely | kooshball wrote: | one example | https://www.latimes.com/business/story/2019-12-17/vox- | media-... | | The only reason we haven't seen other professions being | widely decimated by AB5 is because they all lobbied for | exemptions which again shows how corrupt this law was. | | See the full list here https://www.nolo.com/legal- | encyclopedia/exempt-job-categorie... | ccktlmazeltov wrote: | This is all a shit show because the infrastructures in place are | currently doomed for the market to succeed: | | - no healthcare means you're a slave of whatever you can find, | | - tipping culture means your employer can pay you shit | ram_rar wrote: | +1 for tipping culture. I just dont get it, why can employers | pay their fair share, instead of expecting customers to foot | the bill. | Skunkleton wrote: | > instead of expecting customers to foot the bill. | | Either way, the customer will be paying this bill. | ksdale wrote: | I wouldn't mind at all if tipping culture disappeared, but I | think it's naive to think that costs wouldn't go up | dramatically for customers. Customers are footing the bill | one way or another, it's just a matter of whether we're | willing to pay enough to ensure everyone gets a livable wage. | crosscorsair wrote: | The real problem of tipping culture is it transferred the | conflict of interest from businesses/employees to | customers/employees. Yes customers may end up paying the | same, but when the employees want more, they will not ask | for it from the customers. | aeyes wrote: | I once worked for a company which was already established in | many markets, no tips allowed and fair pay. When the company | entered the US market we got asked about tipping left and | right. Workers seem to like the gamble on getting a huge tip | and for certain industries customers just assume that workers | aren't well paid. | | But do you tip at Mc'Donalds, the gas station or the | supermarket? | vinay427 wrote: | The larger issue with employers paying insufficiently is | minimum wages that are too low. Federal minimum wage still | applies for tipped workers, as far as I can tell, so employers | are required to compensate the difference if workers make less. | The same seems to apply to most states that have higher minimum | wages, and in a few the minimum wage (excluding tips) is the | same regardless of tipping. | throwawaygh wrote: | When companies like Uber/Lyft depend on safety nets like | unemployment without ever paying into the system, what's | happening is that our children are paying for returns on VC | capital. | | People profiting from these types of companies should feel bad | about themselves. | erichocean wrote: | Now do Amazon. | sneak wrote: | Amazon pays more in payroll taxes, SUI, and Social Security | alone than the entire revenue of the vast majority of any | company you could select in the world. | fsociety wrote: | Doesn't Uber pay all that too? I feel like I'm missing the | point. | throwawaygh wrote: | No, not for its drivers. | [deleted] | c1b wrote: | sounds like you don't know any Uber/Lyft drivers | throwawaygh wrote: | I think it's fairly clear I'm referring to the VC and | founders who chose a business model that effectively | arbitrages others' belief in an obligation to contribute to | the social safety net. | cltby wrote: | When people like you create social safety nets like | unemployment without ever paying into the system, "what's | appending" is that Uber and Lyft are paying for your moral | grandstanding. | | People shifting the costs of their moral choices to strangers | should feel bad about themselves. | vore wrote: | How are we not paying into the social safety net? That's | literally what we as individuals pay for with taxes. | cltby wrote: | My comment was a (lame) play on the inane parent. | | Maybe you're paying, and maybe you're not. But if you are, | you're doing so grudgingly. "I wouldn't have to pay taxes | to support this gigantic welfare state I've repeatedly | voted for if only greedy Uber and Lyft would pay for my | moral principles!" | lovich wrote: | You can want a social safety net and also be upset at the | free rider problem | throwawaygh wrote: | You can also _not_ want a social safety net and also be | upset at the free rider problem. | | Unless you're living off returns on capital, _your_ tax | dollars and _your children's_ future tax dollars are | keeping Uber /Lyft independent contractors fed and off | the streets. | | I'm not sure why you'd be more angry at people who don't | want to see homelessness/hunger than at people who are | pocketing everything in good times and peaking out in bad | times. | cltby wrote: | Ok I'll bite. Can you point me to something that shows | that rideshare drivers would be hungry and homeless were | it not for progressive generosity? Literally any sign | that they disproportionately rely on public assistance? | And to the extent they do, which they don't, did Uber and | Lyft create that situation? | cltby wrote: | What exactly are Uber and Lyft free-riding off of? What | public service are they abusing by operating a ride- | sharing marketplace? In what way are they avoiding their | "fair share" when their employees and investors already | shoulder a massive and disproportionate part of the | state's tax burden? | friedman23 wrote: | Uber and lyft would still exist without unemployment so how do | they depend on them? | | If there was no unemployment insurance uber and lyft would | still exist and saying that uber and lyft depend on these | social safety nets is just dishonest rhetoric. | RIMR wrote: | In what situation aren't investors borrowing from the future? | That's basically the entire state of our economy right now: | that the wealthy older generation invested heavily in the | future, and then squandered that investment and stuck the | younger generations with the bill. | marcinzm wrote: | Huh? As I understand it Uber/Lyft drivers are not eligible for | unemployment benefits (recent laws/court rulings aside). So | they don't depend on the safety nets in any way. | | edit: Unemployment insurance is paid by companies for their | workers who may use it in the future. It's not a shared social | obligation from taxes. Nor is everyone eligible to use it | merely by existing. | throwawaygh wrote: | From Lyft itself: https://www.lyft.com/hub/posts/how-the- | cares-act-can-help-dr... | square90 wrote: | The CARES Act and state-level programs are paying | unemployment assistance to contractors and self-employed | individuals not usually covered by unemployment [0], [1]. | | [0] https://www.edd.ca.gov/about_edd/coronavirus-2019/pandemi | c-u... | | [1] https://www.edd.ca.gov/about_edd/coronavirus-2019/cares- | act.... | marcinzm wrote: | Which is a one-off "world is burning down" case which no | one planned for or expected. Hardy a long term plan by the | VCs to take advantage of everyone else. | | I'm guessing unemployment insurance didn't cover a lot of | the rest of the unemployed either for COVID (as it ran out | due to never being designed for this situation) so it came | from taxes. In which case no one paid into the social | safety net except through taxes (which Lyft/Uber are not | exempt from). | strbean wrote: | I think we just need a way for unemployment insurance to | include independent contractors. | throwawaygh wrote: | Any remotely competent student of history can foresee | occasional economic crises with high unemployment. That's | _why_ we have a national unemployment insurance scheme. | | Maybe you don't foresee a pandemic, but only in the same | way that you don't foresee getting side-swiped when a car | passes you while blowing its tire. Or having your house's | roof ripped off by a tornado. Totally unforeseeable | _events_ , but somewhat predicable _circumstances_. | | The bailouts in crises are not one off because there's | always going to be another crisis. | | Taking care of contractors who work for employers that | arbitrage labor protections == corporate bailouts. | marcinzm wrote: | >The bailouts in crises are not one off because there's | always going to be another crisis. | | Please list the historical unemployment insurance | bailouts that covered contractors. | gwright wrote: | I don't know who "we" is in your statement, but | unemployment insurance is state by state in the US, not | national. | [deleted] | hhsuey wrote: | The gig economy model can be better, but I don't think it's | helpful to blame individual companies. It's an entire system at | play. Some people are totally happy with earning over a few | hours a week. It's not a one size fits all system, so the model | needs to be more flexible. | grugagag wrote: | The gig economy exists only because of the rapid advancement | in technology. When the law catches up with that maybe it | will be fairer. Until then they take and cut corners on | whatever the law hasn't caught up with yet. | chrischen wrote: | Actually what happens is we get lower Uber/Lyft rates for | consumers... consumers that may depend on it in low | infrastructure areas such as other low income workers. | | In a competitive market there is no such thing as "free profit" | for companies. Most savings that apply to all market | competition across the board transfer to lower prices in the | general market. | | Uber would only net the profit if for some reason it was the | only company that didn't have to offer those things out of | pocket. | throwawaygh wrote: | And, if those other people did it, then I would be saying | this about them. | | "That's how the world works" is the oldest justification for | injustice. | | If capitalism really is just a spreadsheet feudalism that | deprives even the yacht owners of human moral autonomy, then | maybe it's time to burn down the system. NB: I don't buy it, | and I think markets can function alongside patriotic | responsibility. | donsupreme wrote: | Uber gained market cap of $4B since this appeal news broke, | already spent $100M to fight AB5, all the while they burnt $2B in | their last quarter. | | And yet their argument is they can't afford to spend $300M to | cover driver benefits and pay into state unemployment insurance. | donor20 wrote: | I'm in a non-rideshare field. The law here (AB5) has been a | disaster, a total mess. | | One proof point, workers in a TON of fields have absolutely | flooded Sacramento to get exception after exception into this | law. This is not a normal principles based law. This a law with | "principles" that are so ridiculous that everyone then goes | let's carve these random folks. | | Get a grip. | | Imagine if we had laws like this elsewhere. It's pathetic - | really. | | Some of the carevouts. | | physicians surgeons dentist podiatrists psychologists | veterinarians insurance brokers lawyers architects and | engineers private investigators accountants securities broker- | dealers and investment advisers direct sales salespeople (often | horrible abuse here with door to door sales) marketing | professionals travel agents human resources administrators | graphic designers grant writers fine artists enrolled agents | payment processing agents through an independent sales | organizations photographers or photojournalists freelance | writers editors newspaper cartoonists and lots more I think gig | musicians want to be sure they have a carveout. Fisherman are | doing carevouts. I think truckers are getting a carevout. A | bunch of beauty industry jobs A ton of contractor and | subcontractor work | | There has got to be some transit union or something pulling | strings here - because the law is horribly unworkable even for | folks who DO want to do the right thing. Most are resigned to | waiting until everything is carved out but uber and lyft. | jeffbee wrote: | Ah yes, the all-powerful bus drivers' union. | renewiltord wrote: | Am I understanding this correctly? You mentioned the market cap | because you're proposing that they leverage their market cap to | pay for this by making share offerings available on some short | enough cadence to ensure cash flow? Or to collateralize some | loan with the current ownership? | | That's not a conventional strategy but perhaps you can make a | good argument for why it will work. | creato wrote: | > And yet their argument is they can't afford to spend $300M to | cover driver benefits and pay into state unemployment | insurance. | | You compared global market cap/revenue losses to just the | impact of CA. What happens when other markets follow in CA's | footsteps? | r00fus wrote: | This argument that local laws can't be followed because "what | would other jurisdictions do" doesn't seem to apply to | authoritarian places like China who impose pretty onerous | requirements for operation (like state ownership). | | There is another option for Uber/Lyft - to let drivers set | their prices and/or routes. Of course, that would make them | less of a unicorn and more of a utility and that would crater | their valuation. | creato wrote: | I'm not making an argument for or against Uber. Just | explaining why they didn't just eat the cost of this | because it would have been insignificant/cheaper than | fighting it. | foota wrote: | And also make the service much less useful. Or at least | very different from what it is now. | majormajor wrote: | > There is another option for Uber/Lyft - to let drivers | set their prices and/or routes. Of course, that would make | them less of a unicorn and more of a utility and that would | crater their valuation. | | That isn't enough, is it? Don't they still fail the "core | business functionality" part of the test? | ffggvv wrote: | you're comparing a lot of unrelated numbers and mixing hem up. | | per barclays the figure for uber is 500M a year not 300. 300 is | the figure for lyft | | market cap is the total value of the companies issued shares. | they don't have access to that money. | | 100m to fight a law that would cost them 500m/year seems like a | good investment. | | burning 2b last quarter is proof they can't afford any | additional costs as they already aren't profitable. | | adding 500m a year would be increasing their quarterly spend by | > 10% just to service a single state | kumarski wrote: | What most of the people in this thread don't realize is the | reason that Uber became large? | | The smart ones will understand that Uber's entire subversive | cross border growth tactic was tracking cops, which is a felony. | | They hired Eric Holder to do the clean up job with workplace | harassment as the cover story. | | Eric Holder is not the best sexual harassment lawyer, he's the | best lawyer to go close private backroom deals with Attorney | Generals in all 50 states. | | Uber not only did this domestically they did it in places abroad | too, india etc... | | They were able to fly under the radar long enough to circumvent | localized taxes. | | Medallion holders pay taxes into their locales, Uber does not. | | TNC liceneses are a small fraction of the profits generated. | | AB5 California Contractor/Employee Policy: | | To hire a contractor, businesses must prove worker | | a) is free from the company's control | | b) doing non core/critical work to co | | c) has an ind. business in that industry. | | Must meet all 3 or be classified as employees. | | The lack of property taxes, more pension fund shortfalls, etc... | means that California is racing to collect taxes. | | The first levers are things like weird fees on receipts, then it | moves to applying payroll logic and taxes to businesses (employee | vs. contractor), then to wealth taxes, and then the real big | kahuna is the VAT taxes. | | The VAT taxes are coming. | | Taxi cab drivers were middle class and medallion ownership | created wealth. | | Uber exploits its contractors, operates at a loss, and is propped | up by political nepotism and cheap laundered CCP cash. | | David Plouffe's job was to run an astroturfing campaign in every | major city. | | He had trouble written all over him. | https://www.chicagotribune.com/news/breaking/ct-david-plouff... | | Uber is a revolving door of corruption at the highest levels. | | Uber circumvented taxes in every city they approached by bribing | the State with TNC's and hiring from the revolving door. | | People don't talk about all the thug life things Uber did to | grow. | | I always call BS whenever some Uber shirt tucker comes my way and | says "marketplace dynamics" and "intelligent routing." | | Uber is an amoral company that built political firewalls against | regulatory realities, not one of brilliant technologists. | | Also, here's me with $50k in uber credits: | https://twitter.com/datarade/status/1080608107409993728?s=20 | | It took me several years to figure out the subversive truths of | Uber that made it large. | dmode wrote: | So, I wasted my outrage in another thread complaining about this | only only for a judge to put this on hold. :facepalm: ___________________________________________________________________ (page generated 2020-08-20 23:00 UTC)