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Bill Could Destroy Uber's Unsustainable Business Model

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Re: Bill Could Destroy Uber's Unsustainable Business Model

#31

Earlier quoted context omitted.

But are they truly contractors? They don't set the price for their own labor and can be fired for declining too many rides.

As with any independent contractor, the market sets the rate. Uber is just a really efficient marketplace since an Uber ride is a complete commodity with no specialization.

It's Uber who sets the price, not the market, so this doesn't apply.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#32

Earlier quoted context omitted.

But are they truly contractors? They don't set the price for their own labor and can be fired for declining too many rides.

As with any independent contractor, the market sets the rate. Uber is just a really efficient marketplace since an Uber ride is a complete commodity with no specialization.

What a crock, Uber is setting those prices not the market. The market says Uber should be going out of business with the prices it sets, except investors keep dumping money into it.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#33

Earlier quoted context omitted.

Where do you live? This seems like an anomaly.

I forget the name of the company but four years ago, I was offered an interview at a taxi company to help make an app for hailing rides. The job was in SF but they operated all over the US.

Flywheel?

Re: Bill Could Destroy Uber's Unsustainable Business Model

#34

How about people get guaranteed certain rights and services by the government so we don’t have to worry about whether someone’s an employee or contractor?

Because Americans don't like paying taxes. It's why we revolted against the British in the first place.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#35

But they aren't employees. I still dont understand why people who get to work on demand whenever they want without a boss to report to or set hours are employees. The company doesn't get the benefits of having employees (schedule them in for rush hours, reliable controllable labor base), so why should drivers get the perks of becoming an employee without having to give up their flexibility and everything?

But are they truly contractors? They don't set the price for their own labor and can be fired for declining too many rides.

Not setting the price doesn't seem like a big deal. I can put an ad on Craigslist saying I'm willing to pay $100 to have my driveway pressure washed. Doesn't make any takers my employee.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#36
post #17

Earlier quoted context omitted.

I have seen similar things happening in a lot of countries outside of US. So maybe not as anomalous as you think

In various cities of Poland, the transformation was already halfway done before Uber. The main thing missing was an app, but arguably it would've happened without Uber.

There's an interesting market emerging providing solutions for mobile-first Uber-like services covering all three sides of the transaction: order taker/business, the agent, and the customer all get mobile apps to track in real time their service/good being delivered.

I came across it while talking with a bar fly at my neighborhood pub who owns and operates a freight brokerage, he's been getting sales calls from such companies and is about to make a switch to some platform that has fewer features than the one he uses now, but apparently has exactly the ones he needs (or as he put it "I can get by") and for cheaper.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#37

Earlier quoted context omitted.

But are they truly contractors? They don't set the price for their own labor and can be fired for declining too many rides.

As with any independent contractor, the market sets the rate. Uber is just a really efficient marketplace since an Uber ride is a complete commodity with no specialization.

Uber isn't a real marketplace. "Sellers" (riders) don't set their own prices, and "consumers" (riders) don't get to choose who provides the service to them. Furthermore, prices are driven down artificially by investors who are willing to take a loss until other "markets" are forced out of business, at which point Uber will presumably raise its prices to actual taxi market rates.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#38

Earlier quoted context omitted.

As with any independent contractor, the market sets the rate. Uber is just a really efficient marketplace since an Uber ride is a complete commodity with no specialization.

What a crock, Uber is setting those prices not the market. The market says Uber should be going out of business with the prices it sets, except investors keep dumping money into it.

Doesn’t Uber have competitors? And why shouldn’t we consider investors part of the market?

(Pardon my ignorance if these are dumb questions...)

Re: Bill Could Destroy Uber's Unsustainable Business Model

#39

Im baffled to imagine drivers really want to lose all those tax deductions - and get paid less - to be employees rather than contractors. Being an employee is just about the worst possible tax situation. A better change in the law would be the opposite. Give the benefits of being a contractor to all folks currently forced to be categorized as employees. And fix healthcare so it’s not tied to your job.

Being an employee means you can unionize, you must be paid minimum wage, you have protection against arbitrary termination, and myriad other benefits. Many drivers prefer the current arrangement, but many also want to make the tradeoff.

>you have protection against arbitrary termination

https://en.wikipedia.org/wiki/At-will_employment

Re: Bill Could Destroy Uber's Unsustainable Business Model

#40

But they aren't employees. I still dont understand why people who get to work on demand whenever they want without a boss to report to or set hours are employees. The company doesn't get the benefits of having employees (schedule them in for rush hours, reliable controllable labor base), so why should drivers get the perks of becoming an employee without having to give up their flexibility and everything?

This just codifies an existing California Supreme Court ruling and applies it to general employment status.

Explainer of the Supreme Court ruling: https://www.forbes.com/sites/tonymarks/2018/05/29/the-califo...

> Under the newly adopted ‘ABC test,’ a worker is an independent contractor to whom a wage order does not apply only if the hiring entity establishes all of the following:

(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;

(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

A is debatable at best, given that make and model of car is heavily restricted, particularly for the 'UberBlack' service. https://www.uber.com/drive/new-york/get-started/eligible-veh...

If your contractor gets to dictate how you present yourself and how you do your job rather than just being happy with the end product, that looks a lot less like contracting as understood by laypeople.

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