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Uber and Lyft shutdown in California averted as judge grants emergency stay

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Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#11
post #7
post #3

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.

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.

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.

Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#12

Good, this can wait till Covid-19, forest-fires and other urgent matters right now in California have been taken care of.

Yes. Once those crises are over it's all smooth sailing ahead! There'll be TONS of time for labor law then.

Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#13
post #8

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.

Can you share the professions of the people you know whose jobs were destroyed?

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

Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#14

Good, this can wait till Covid-19, forest-fires and other urgent matters right now in California have been taken care of.

Yes. Once those crises are over it's all smooth sailing ahead! There'll be TONS of time for labor law then.

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.

Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#16

Earlier quoted context omitted.

Yes. Once those crises are over it's all smooth sailing ahead! There'll be TONS of time for labor law then.

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.

Tell that to Uber and Lyft.

Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#17

Good, this can wait till Covid-19, forest-fires and other urgent matters right now in California have been taken care of.

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...

Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#18

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.

> 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?

Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#19
post #7

Earlier quoted context omitted.

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.

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.

Freelancing is already a thing. This is a horrible analogy.

Re: Uber and Lyft shutdown in California averted as judge grants emergency stay

#20

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.

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

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