If Lyft can't keep its drivers as contractors, it may never be profitable
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Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#2If we assume this is correct what does it mean for the company and it’s employees? They are going public which means there will be pressure to make a profit. How does it bode for their recruitment and in general well being of the company?
Also I cannot imagine Uber to be in any different situation.
Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#3Human drivers are just mechanical turks to build market share while self-driving cars become commercially viable.
Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#4If we assume this is correct what does it mean for the company and it’s employees? They are going public which means there will be pressure to make a profit. How does it bode for their recruitment and in general well being of the company? Also I cannot imagine Uber to be in any different situation.
It means Lyft and Uber are terminal and their insolvency is not about if but when. There are only so many $2 bills to sell for $1.
Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#5Self driving cars would change the economics and create profitability in the markets it’s a viable solution within.
All ride sharing companies have the same problem.
Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#6Anyone else see these and think about how maybe there should be some other type of worker other than employee or contractor? Those are hard definitions, and creating laws to reflect this type of worker is incredibly difficult considering people and companies figure out loopholes, but really feels like there should be another category to go with this type of work that's going to become more and more common.
Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#7I'm kind of torn on this.
My father has been truck driver his entire life and for the last 20 years worked as a contractor, while driving his own truck and trailer, since it gives him more $$$ than average driver who works as employee. However, he has non-existent social net. No health insurance, no pension benefits. If he out of work or has serious health issues that ground him for months, he has to dig into savings and I also have to help him.
So, if Lyft driver who was "gigging" for them for years gets sick and he is out of work, what kind of help would he get ? None, at least in US.
Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#8If we assume this is correct what does it mean for the company and it’s employees? They are going public which means there will be pressure to make a profit. How does it bode for their recruitment and in general well being of the company? Also I cannot imagine Uber to be in any different situation.
It means Lyft and Uber are terminal and their insolvency is not about if but when. There are only so many $2 bills to sell for $1.
I never understood why anyone thought otherwise, unless you believed self-driving cars would be ready by now.
I'm not going to pretend to understand the intricacies of Lyft and Uber and their experiments with food delivery, carpooling, and other endeavors. But scaling up does not solve the problem of paying your contractors more than they're making you - in fact it only scales up the problem.
Granted, I've thoroughly enjoyed my cheap rides subsidized by VCs for years. But it's just not a viable business, and I have never heard a convincing argument to the contrary. I feel as though few VCs are looking to create value so much as they're looking to get in early and cash out before the house of cards falls over.
Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#9Isn't this just typical legalese that IPO docs are required to say on caveat emptor? It's typically worst case.
Re: If Lyft can't keep its drivers as contractors, it may never be profitable
#10Earlier quoted context omitted.
It means Lyft and Uber are terminal and their insolvency is not about if but when. There are only so many $2 bills to sell for $1.
I never understood why anyone thought otherwise, unless you believed self-driving cars would be ready by now. I'm not going to pretend to understand the intricacies of Lyft and Uber and their experiments with food delivery, carpooling, and other endeavors. But scaling up does not solve the problem of paying your contractors more than they're making you - in fact it only scales up the problem. Granted, I've thoroughly…
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