[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:
        
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