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Transportation United States

Uber CEO On the Flight In California: 'We Can't Go Out and Hire 50,000 People Overnight' (theverge.com) 191

In a podcast interview Wednesday, Uber CEO Dara Khosrowshahi rejected the notion his company is capable of employing all of its drivers in California, as a state judge has ordered it to do so [and comply with AB5, the state law that makes it more difficult for companies to use independent contractors]. The Verge reports: "We can't go out and hire 50,000 people overnight," Khosrowshahi said on the Pivot School podcast hosted by Kara Swisher and Scott Galloway. "Everything that we have built is based on this platform that... brings people who want transportation or delivery together. You can't flip that overnight." [T]he companies claim they would need to shut down operations in California completely in order to retool their businesses to comply with the law. Khosrowshahi said the shutdown likely wouldn't be permanent. "It'll take time but we're going to figure out a way to be in California," he said. "We want to be in California."

Khosrowshahi confirmed reports that Uber was looking into other models, like a franchise-style system in which the company would license its brand to fleet operators in California. "There's a black car service that we have that's based on fleets," he said. "And we are trying to figure out exactly what we do going forward." Regardless, Khosrowshahi said that Uber's response would be to limit the number of drivers allowed on its platform and to raise prices for customers after it eventually relaunches in the state. He predicted that upwards of 80 percent of those drivers who only log onto the app for 5-10 a week would no longer be able to earn on the platform. Trip prices in dense urban centers like San Francisco will go up around 20 percent, he said, while rates would be even higher in smaller, less dense cities.

Uber's critics note that there is nothing stopping Uber from continuing to provide drivers with the flexibility to set their own schedules under AB5. But the company rejects this notion, arguing that no company in California or elsewhere lets employees set their own hours. Uber has proposed a "third way" through the ballot measure it's supporting in California called Proposition 22. The measure would allow the company to sidestep AB5 and go on classifying drivers as independent contractors, while also providing some added benefits like a minimum wage and access to health insurance. Along with Lyft and DoorDash, it has committed to spend over $100 million, while union-backed driver groups only have around $866,000 to lobby against it.

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Uber CEO On the Flight In California: 'We Can't Go Out and Hire 50,000 People Overnight'

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  • Sure you can (Score:5, Interesting)

    by rsilvergun ( 571051 ) on Wednesday August 19, 2020 @04:55PM (#60420127)
    just write an app for it. If it's one thing Uber has taught me it's that you can do anything with an app.

    Seriously though, you've already done the background checks. You've got employee ratings. Hire some consultants to set up an HR firm and get to it. You've known this was coming for months, it's on you if you didn't make plans. Personal Responsibility and all that rot.
    • Re:Sure you can (Score:5, Insightful)

      by saloomy ( 2817221 ) on Wednesday August 19, 2020 @05:24PM (#60420233)
      There are differences in terms of having employment vs having contractors. There are HR issues, there are tax implications, there are costs, there are benefits, there's vacation and paid time off.. all of those things are fixed costs. What if a driver only drives 4 hours a week? What rate do you charge? What if all drivers refuse to drive at night? Today, market dynamics dictate when you drive, because you want rides. When you're an employee, that's Uber's problem.
      • Re:Sure you can (Score:5, Interesting)

        by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Wednesday August 19, 2020 @06:23PM (#60420453) Homepage Journal

        The so-called "gig economy" is just a way to take advantage of people when you don't have a UBI, national health, etc. If Uber were really about ride-sharing like they claim then they would be collecting a small percentage of a fare that would probably be even less than the amount Uber is losing money on now... because the goal would be to get some gas money back, not to make a living.

        Uber should be replaced in California by two services, optionally connected to one app. One would be actual ride sharing like I just talked about, and the other would be a proper taxi service that cost whatever it actually costs to provide the service, owned by the state or the counties. I prefer the state, because every county has different rules and in the interests of people live in places where two counties meet like Yuba-Sutter, or who live in places where commutes or even just errands regularly take them through multiple counties like the Bay Area.)

        I really want a real ride-sharing service. Not so much right now, but once this Covid thing is finally over.

        • Re:Sure you can (Score:4, Insightful)

          by saloomy ( 2817221 ) on Wednesday August 19, 2020 @08:19PM (#60420845)
          Yeah, a state run bureaucracy. It will lose money, the state will ask the federal government for more funding, and the public worker unions will siphon off millions. No, thanks.
          • Freedom! Horrible, horrible freedom! We need our overlords to control our lives!

            That's a mocking way to say the government protects its own, like any mafia does. How dare free people insinuate themselves!

            • By paying less than a living wage, Uber is less than not enslaving people.

              Lobbying against laws that protect workers and then taking advantage of those workers isn't just shrewd business sense, it's also a race to the bottom that ultimately hurts everyone.

              Letting Uber operate in a way that ultimately harms everyone is inherently harmful to the citizenry.

          • Re: (Score:3, Insightful)

            by OzoneLad ( 899155 )

            Yeah, a state run bureaucracy. It will lose money, the state will ask the federal government for more funding, and the public worker unions will siphon off millions. No, thanks.

            Better to do it the "free market" way, where the state and city legislators fall all over themselves trying to attract your business using tax breaks and other incentives. That way, the state is still paying through the nose and gets none of the profits. That's the American way!

        • Please tell me, what would this UBI you are talking about look like? Who would qualify and how much would a qualified person get?
      • the teenagers can only work so late and certain days. They had 24/7 chains when I was a kid, many corporate owned. This is not a new challenge.
      • Why let them drive only 4 hours a week. They are employees and the company can mandate a minimum number of hours a day, say, 4 hour a day minimum or you don't drive anymore.
    • They already have a HR firm - one who manages the perks for all the employees that Uber consider to be important enough to employ, the programmers and managers.

    • by ranton ( 36917 )

      Seriously though, you've already done the background checks. You've got employee ratings. Hire some consultants to set up an HR firm and get to it. You've known this was coming for months, it's on you if you didn't make plans. Personal Responsibility and all that rot.

      1. Most of their plans will probably include ways to circumvent the ruling. The summary mentions a franchise-style system probably being considered for this reason.

      2. They would like to find some way for voters to feel the pain before voting on Proposition 22. Complete loss of service is even worse than a 20% average rate hike, so it works in their favor.

      3. There is probably more work than just doing the paperwork. There are likely a slew of new concerns such as liability for drivers which need to be worked

  • by Narcocide ( 102829 ) on Wednesday August 19, 2020 @04:55PM (#60420135) Homepage

    Drivers are collectively taking a loss here. The only people who do this job are desperate and only doing so to lose money slower while simply biting the value loss on their own vehicle. It's a problem that needs a solution, but Uber isn't it.

    • I don't think you understand the term "business model". Uber's business model worked just fine. The independent contractor drivers' business models might not have worked well but that is their problem.
  • by Cyberax ( 705495 ) on Wednesday August 19, 2020 @05:02PM (#60420165)
    Uber had one year to make the change. If they didn't foresee the possibility of the court loss then their CEO should be fired for incompetency.
    • they didn't foresee the possibility of the court loss

      Apparently it came to them as a complete Uber-raschung.

    • Re: (Score:3, Insightful)

      by nashv ( 1479253 )

      You're assuming they wanted to make the change. Instead they have decided that the loss of potential profits from the time required to change the business model is much less than the cost of converting all their freelancers to employees. I don't know who was surprised with this.

      Now the freelancers are screwed, Uber is screwed and the customer is screwed. Good job California. Maybe now these people will learn that economics is a game...legislating a dynamic system according to your ideals can put it into a e

      • You're assuming they wanted to make the change. Instead they have decided that the loss of potential profits from the time required to change the business model is much less than the cost of converting all their freelancers to employees. I don't know who was surprised with this.

        Now the freelancers are screwed, Uber is screwed and the customer is screwed. Good job California. Maybe now these people will learn that economics is a game...legislating a dynamic system according to your ideals can put it into a everyone loses situation just as easily as it can to an 'everyone wins' situation. John Nash figured this out decades ago [wikipedia.org] and even won the fucking Nobel prize for it in 1994.

        Right, instead of just the freelancers being exploited.

        A business model that screws one section of society over others should not exist.

    • Just more reason for people to flee the state. But if you do, don't vote for the same kind of idiots who set up that which you fled.

      Only by removing the business power propping up the plague affecting them will it change.

    • They have another option and it is a nuclear option. They can simply stop providing service in California. They can throw those 50,000 California drivers off the app and stop booking rides in California. Then, they don't have to make the change and California suffers the greater loss.
  • True, but Uber didn't hire 50k people overnight. They just pretended that they were not employees.
    Maybe they will be better prepared for the other 49 states.

  • Just plain greed (Score:5, Insightful)

    by zuckie13 ( 1334005 ) on Wednesday August 19, 2020 @05:05PM (#60420183)

    "Along with Lyft and DoorDash, it has committed to spend over $100 million, while union-backed driver groups only have around $866,000 to lobby against it."

    Basically, they'd rather spend their cash on lobbying for their rule rather than just choose to treat the people who make that money for them better.

    • Of course. Lobbying is a one-time expense that pays off over the life of the business if successful. Changing every driver into an employee would burn that $100M in a year or two, and then they're still at the same burn rate for every year after that.

      Yes, Uber are assholes. I don't know why you would expect an assholic company that has screwed their drivers at every other decision point to all of a sudden go "aww shucks, I guess we should start handing out 401(k) plans and dental insurance and shit becau

      • Uber has the plan to replace the drivers with robots, probably just need to hire people for 2 years then roll out the self driving vehicles as you fire them all. It is not a plan I am in favor of but if you look at Uber's past if there was an evil option that they thought they could get away with, they took it. I don't think that will have changed.
        • Self driving cars are many years away.

          Uber needs to convince the rubes at places like Softbank to keep pouring Saudi oil money in until the self driving cars are ready.
          In a perfect world Uber would use up all the Saudi royal family's cash, then go belly up.

          • That's why they are selling ARM. Bought for $32 billion, they'll probably find someone to buy it for $10 billion to put into Uber.
        • Why hire people at all? Pull out of California for 2 years instead.
    • next to the prize of fundamentally changing the relationship between employer and employee in their favor. If Uber succeeds they'll wipe away 200+ years of hard fought labor rights.

      That'll effect us all, by the way. Those people living in poverty and desperation won't take this lying down. They'll start gunning for your jobs and what you have. That'll mean more supply for tech workers as they struggle to find jobs they can support themselves on. Sure, most will wash out, but a lot won't.

      It's a class
      • Or you could just not work for Uber if they don't provide the benefits you want.

        • Can they? They have to work for someone because we live in a society that claims to value work over all. In actuality the idea is just to keep people dependent on the current system, of course. We don't pay the hardest workers the most, we don't pay the workers in the most dangerous jobs the most... we do not value hard work. We just pay it lip service to keep down the plebes.

    • That is not a reasonable assessment. Uber can afford to spend $100 million one time to try to position a business model that makes sense. The alternative simply does not work. It would likely cost them around $5 Billion every year to make all the California drivers employees in full compliance with all of California regulations. They only took in a gross of $14.5 Billion off all of their global operations in 2019. The math simply does not work. You can't spend a 3rd of your revenue on onerous governmen
    • If the unions weren't funneling money to organized crime and paying the union officer's obscene amounts of money, the unions would have more money for lobbying. Don't blame Uber because unions are corrupt, criminal enterprises.
  • Silicon Valley progressive types are eating their own. They don't even know they are doing it, or even worse, don't care.

    The people hardest hit by this are the people driving for Uber who now don't have anything. What did you actually think would happen? Because this is exactly what I thought would happen.

    • The people hardest hit by this are the people driving for Uber who now don't have anything.

      We were told from the beginning that this was a side job, something to make a bit of extra money on the side doing taxi work. Now you're admitting people are working full time for Uber but not being paid as such. Good to know.

      • by Jason Earl ( 1894 ) on Wednesday August 19, 2020 @06:44PM (#60420537) Homepage Journal

        Have you ever lost a side hustle? I have, it sucks. Sure, it wasn't my primary means of paying the bills, but you don't take an extra job unless you *really* need the money. Now there are 50k people in California that were happy with their arrangement with Uber that have got to find some other, probably far less appealing, way to make up that economic shortfall. Plus, they get to do it in the middle of a pandemic.

        Don't get me wrong. I wouldn't work for Uber under any circumstances. Their management is basically criminal, and their culture is (apparently) the worst on the planet. Uber's entire scheme has been to run their business at a loss using investor money until all of the traditional taxi companies went out of business, and then dramatically raise prices. Uber could do this because they didn't have to worry about benefits, and they could also rely on individual drivers to carry the cost of actually purchasing the required vehicles. Even without those expenses Uber somehow managed to lose nearly $2billion last quarter. I can't hardly imagine how a company that just produces an app manages to lose so much money.

        None of this, however, changes the fact that the people working for Uber thought it was a good deal for them. The State of California just kicked those people in the teeth.

        • by Mitreya ( 579078 )

          Uber's entire scheme has been to run their business at a loss using investor money ... they could also rely on individual drivers to carry the cost of actually purchasing the required vehicles.

          I am ok with the first part but not ok with the second part.

          None of this, however, changes the fact that the people working for Uber thought it was a good deal for them.

          The problem is that most people don't understand expected values. There is lots of indication that people thought it was a good deal because they don't properly account for accumulation of non-immediate costs (repair and maintenance).
          Also, insurance is a total mess. Uber has insurance now, but quick check of their webpage shows that "Available or waiting for a ride request" insurance is absolutely minimal and only "En route to pick up riders and d

        • None of this, however, changes the fact that the people working for Uber thought it was a good deal for them

          No, they thought it was better than no deal. That doesn't mean they thought it was a good one. And Uber lobbies for laws to make it possible for them to abuse people, meaning they're deliberately helping to perpetuate the situation where people are so fucked financially that they're willing to drive for Uber.

          The State of California just kicked those people in the teeth.

          The State of California has to balance the needs of all of the people against the needs of some of the people. They decided that permitting Uber to pay less than a living wage is harmful to society. Thi

        • "the people working for Uber thought it was a good deal for them."

          It could be argued that people taking money from loan sharks or payday lenders think it's a good deal for them. Most of the time its not, but the people don't know it or understand the deal. That why there are govt regulations. People taking quack medical treatments often think they are good, but they are often wrong and don't realize it until the are close to death. Protecting people from their own bad judgement isn't always a nanny state.

      • by rossz ( 67331 )

        In case you haven't noticed, a pandemic has taken away a hell of a lot of jobs. This resulted in that side job becoming the primary job, hopefully temporarily. Except the California government in its infinite wisdom thinks that no job is better than a shitty job. There is simply no way Uber could convert all those people to full time employment. The business model was never designed for that. They would have to become a taxi company. Except that won't happen because the taxi business is tightly contro

    • The whole of the US is ripe for a change to how work is classified and remunerated. I don't have the answer but its clear that the exempt vs. hourly + overtime model is overdue for change. Too much abuse on both sides, and coupled with the insanity that is healthcare & benefits tied to full time employment, is misery for many Americans

      California had the opportunity to lead this, similar to how they shown leadership for many environmental efforts in the past. But instead they came up with AB-5 which i

    • none of these people are progressives. You're confusing a handful of their employees with the employers.

      That said the working class has been at each other's throats for way too long. Whether it's because of the Southern Strategy, wedge issues like Guns & Abortion or just plain hate them damn dirty hippies the ruling class has used every trick in the book to keep us divided. In India they use Castes, America it's race & even Japan gets in on the fun with the Burakumin.

      You'd think we'd freakin
      • there is a simpler explanation
        the working class used to be much broader but the more intelligent part of it got an education and became middle class, leaving the less educated ultraconservative people behind

      • It's a right-wing myth that "big tech CEO's" are lefties. In practice they are socially left-leaning, but economically right leaning. Thus, centrists.

    • California government has always dealt ruthlessly with companies that pretend their employees are contractors, and I can't believe that Uber didn't know that. So were they stupid, careless, or thought they could bribe their way out of this with lobbyists? And if it was the last one, again, they were stupid. The most powerful part of California are the high level appointed bureaucrats that depend on high taxes and more regulation for their existence.
  • Good work as always, "Editors". You must be so proud.

    • Freudian slip. There will be a flight from California if the state legislature keeps punishing businesses and doing things like threatening a wealth tax. I don't think politicians here know how precarious the economy is since remote work has been realized and partially institutionalized.

      Does Uber HQ need to be in San Francisco, CA anymore? Covid says 'nope', and the legislature added an exclamation point. The optics aren't such that they will bolt immediately but I will bet a decent wager they move HQ

      • California is used to doing whatever they want because it was too expensive for the big companies to move. But then they took things too far. Now that the blowup with Tesla made everyone realize that a big company could spend a billion dollars on moving to a more friendly state and still come out ahead, just about every savvy CEO in the state is looking at the options.
      • It never needed to be in California at all. They would be better off in a state with a lower cost of living, like Florida, Mississippi, the Dakotas, Montana, Tennessee, pretty much every other state besides CA.
  • Ebay not Amazon (Score:5, Interesting)

    by ghoul ( 157158 ) on Wednesday August 19, 2020 @05:43PM (#60420319)

    We need a way to solve the taxi mafia issue without having people work for below minimum wage as Uber and Lyft do.

    Maybe lift the limit on medallions - if you can pass a background check and hold insurance you can drive a taxi. Let every driver incorporate. Let the app be limited to a dispatcher and hold no legal libility for the driver.

    Basically an eBay model rather than an Amazon model .

    • by Zuriel ( 1760072 )
      Give it another ten years and self driving cars will put all of them out of work, along with the truck drivers.
    • We need a way to solve the taxi mafia issue without having people work for below minimum wage as Uber and Lyft do.

      Perhaps it's not possible to have an on-demand army of chauffeurs with decent cars, being paid reasonable wages, which is affordable to hire for the average person and highly available. It might be one of those "pick any two" situations: Maybe you can only do it with shitty cars having a low capital cost, or for a price higher than most people want to pay, or with shitty wages paid to the drivers, or with hardly any drivers available. Just because we think we need it doesn't mean that it's possible for th

      • by ghoul ( 157158 )

        Maybe taxis are not meant to be a high paying job. The issue currently is Uber presents its drivers as part of the Uber brand hence it imposes various controls and standards on them to reduce the reputational risk to Uber if someone has a crappy car or misbehaves. A pure dispatcher app which only charges a commission but does not set any standards or prices will not be taking a reputational risk. There is value in people who ahve some free time and a car being able to pick up rides on a dispatcher platform.

        • I'm waiting for someone to explain that you'd be taking advantage of the drivers in some way with this system. 'cause surely that's coming.

          But I like it.

        • by Compuser ( 14899 )

          If the app inserts itself into the transaction chain for each ride (in your proposal, charges a commission) then Uber will still be on hook for drivers as employees. You just know Cali will find a way to twist it that way. They should make the app itself cost money, perhaps as a monthly subscription, so both customers and drivers pay a fee which is not linked to any specific activity. They could also make money on in-app ads. Either way, if you eliminate background checks and driver management, then all you

      • It seems to me, you don't have to choose between two choices for price, either high or low. Prices can be just a little higher, or a little lower.

        Same with driver availability, which translates to waiting time. It's not a yes/no where you have to choose. If driving paid $500/mile, everyone would do it and you'd have Uber cars waiting outside your house 24/7. At 1 cent per mile they would be none, and there are 50,000 gradient values in-between.

        The more you are willing you pay (the more drivers make), the

        • You make good points about the continuity of prices and waiting times. However, I'll add that in a market where substitutes are available - in this case everything from buying your own car to riding a bike to taking public transit to calling a traditional taxi company to asking friends for a ride to travelling less - there can be price points where the demand curve for a specific product drops off steeply when large numbers of people realize that they can switch to a different product for a better price.

          Therefore a lot of people WILL do it for $10-20/hour and be quite happy with that! Because people want to do it for $12/hour, the only way to increase the earnings significantly is to artificially reduce the supply by telling people who want to drive that they aren't allowed to.

          Th

      • Everything about taxis involves a race to the bottom, absent meaningful and enforced legislation to make it work some other way. The taxi service itself has degraded over time. Cars are no longer designed to be maintained; they are disposable. Sure, they last longer before their first major maintenance than did cars of old, but then they are so difficult to work on and so expensive to get parts for that they generally just don't get it. You used to be able to just drive up on a curb and slide under a car an

  • But the company rejects this notion, arguing that no company in California or elsewhere lets employees set their own hours.

    Uber the company that doesn't want to conform to other companies or laws in the way they operate, now want to use the excuse we couldn't possibly do it that way as other companies don't do it that way.

  • by Anonymous Coward

    But the company rejects this notion, arguing that no company in California or elsewhere lets employees set their own hours.

    Wrong. Uber is lying here.

    Uber does exist in Germany but does not enter into contracts with drivers directly. Instead, they cooperate with car rental companies who employ the drivers. Although these drivers are employees, they usually can work when they like. So yes, Uber's partners in Germany let employees set their own hours, and this is well-known by Uber.

    (And BTW, flexible time arrangements are quite common for office jobs in Germany. So there's also that.)

    • by dgatwood ( 11270 )

      But the company rejects this notion, arguing that no company in California or elsewhere lets employees set their own hours.

      Wrong. Uber is lying here.

      Uber does exist in Germany but does not enter into contracts with drivers directly. Instead, they cooperate with car rental companies who employ the drivers. Although these drivers are employees, they usually can work when they like. So yes, Uber's partners in Germany let employees set their own hours, and this is well-known by Uber.

      (And BTW, flexible time arrangements are quite common for office jobs in Germany. So there's also that.)

      Yeah, it was all I could do to not laugh out loud when I read that. In all my years working at tech companies in California, I have never worked for a company that did not allow its employees to set their own hours to at least some degree. The companies that didn't suck to work for were, of course, more flexible than the ones that did.

      It makes me glad I never seriously considered applying for any sort of software engineering job at that company. Uber must be absolutely horrible to work for.

      • Plus, if they really want their contractors to be contractors, a simple change in the app to let drivers bid on the ride request and set their own price is all it would take.

        But they seem to prefer throwing a hissy fit.

      • In all my years working at tech companies in California, I have never worked for a company that did not allow its employees to set their own hours to at least some degree.

        So, you are saying you could, with no warning or request, not show up for work for a week with no explanation and no one would say a thing, yes? And, you could, without permission or warning, just go home after three hours? And, you could work another job during the day and show up to your tech job for 2 hours in the afternoon whenever you needed a little extra cash or just felt like it?

        You are comparing apples and bowling balls.

  • and that minimum wage needs to cover wait time, return time, minimum wage after car costs.

    • The drivers are tipped employees so that minimum wage needs to be that for tipped employees, $13.00 per hour in California. Good luck living on that in LA or SF or any other large city with insane rent costs.
  • by imidan ( 559239 ) on Wednesday August 19, 2020 @06:39PM (#60420523)

    Everything that we have built is based on this platform that... brings people who want transportation or delivery together.

    That's the story they like to tell, because it underpins the fiction that their drivers are all people who just happen to be going somewhere that one of their passengers wants to go, and wouldn't it be great if that driver could just swing by and pick up this person who is going to the same place. This is carpooling, and if what Uber were really about was carpooling, then I'd certainly be against the drivers being classified as employees.

    But Uber isn't really about carpooling, it's a taxi service. They use their app to try to construct a legal pretense that they aren't running a taxi service, they're just poor little app makers. And they treat their drivers as contractors because doing so allows them to skirt labor laws, occupational safety laws, licensing and permitting laws, tax laws, and probably a slew of others. They're crooks, taking advantage of desperate workers and a weak regulatory system to build a taxi company that doesn't have to follow any of the rules of existing taxi companies so they can squeeze out the competition and pay workers subsistence compensation (or worse).

    • by nashv ( 1479253 )

      And they treat their drivers as contractors because doing so allows them to skirt labor laws, occupational safety laws, licensing and permitting laws, tax laws, and probably a slew of others.

      And why shouldn't they ? In the words of Richard Feynman, "You don't like it ? Go somewhere else, where the laws are simpler, psychologically more pleasing, philosophically more easy."

      Uber doesn't force people to work for them as drivers. Drivers sign up. Sure, it works because of the shitty economy, but that isn't Ubers fault and it doesn't make them crooks. It makes them clever.

      • Uber doesn't force people to work for them as drivers. Drivers sign up. Sure, it works because of the shitty economy, but that isn't Ubers fault and it doesn't make them crooks. It makes them clever.

        Taking advantage of people in obvious ways doesn't make them clever. It makes them shitheels. Defending them doesn't make you clever, it just makes you another shitheel.

  • by Anonymous Coward

    They are right, in a way, they cannot find 50,000 people that could pass full criminal background checks in CA, and have a commercial drivers license, and commercial vehicle insurance (like any other taxi service). Which is, in itself, telling. They have chosen to put riders lives at risk to make a profit.

    On the other hand, their HR system can handle over 20,000 employees, so selecting the top 7,500 and employing them should be not problem, if they were not focused on trying to misrepresent their exploita

  • If Uber wants its drivers to be considered independent contractors, then allow them to set their own rates over and above Uber's commission structure, and present that rate to the rider who can optionally refuse the ride if it they feel it is too much, at which point another driver whose rates are lower is hailed, if one is available.
    • Or just make their app a subscription service and stop taking a part of their fares & tips.

    • If Uber wants its drivers to be considered independent contractors, then allow them to set their own rates over and above Uber's commission structure

      Then, the drivers aren't independent contractors. They are contracted to Uber to drive under Uber's rules and rates in exchange for using Uber's booking feature.

      resent that rate to the rider who can optionally refuse the ride if it they feel it is too much, at which point another driver whose rates are lower is hailed

      Do you understand are describing a situation where it is a race to the bottom, in this case Uber's rate and commission structure? The cheapest price will ALWAYS be Uber's base rate and people who aren't time pressed will always take the cheapest option.

      Also, you are inverting the role of the app. Now, drivers choose the rider. Under your system, t

  • ...when I did something stupid and had to pay for it. They probably should have thought a bit before they did this.

    • Except they did think it through. The problem here is that California changed the rules after Uber had established itself. There are rules govern who is considered an independent contractor, the rules set by the federal government, and California decided to make it's own rules which only apply to very specific situations.

      It would be like you started playing a game and half way through the game, the other players changed the rules that made your winning strategy against the rules.
  • "arguing that no company in California or elsewhere lets employees set their own hours"

    ahem. False.

  • The drivers upon signing an employment contract should be required to guarantee 30-40 hours a week. They should be required to position their cars... not where it's most profitable for them, but instead where it's most profitable for Uber. They should be responsible for covering the cost of fuel to and from whereever they are sent each day. They should be required to limit their sick and vacation days. They should be required to provide doctors notes when they are unable to work.

    Uber could seriously make th
    • Don't forget that they can pay minimum tip wage plus tips and refuse to let drivers work if there is a shortage of rides (sending employees home during slack times), require drivers to work specific hours including overnight shifts, enforce a dress code, dictate music choices in vehicles, etc. Also, no more rating passengers and drivers are given fewer hours if they don't maintain a rating over 4.75 and are fired if their rating falls below 4.5.

      As employees, Uber can control the drivers in a much more i
  • But the company rejects this notion, arguing that no company in California or elsewhere lets employees set their own hours.

    And that right there says exactly what Uber and Lyft are trying to do. No, no company lets employees set their own hours. For independent contractors, though, part of the definition is that they do set their own hours, and working conditions, and everything else, all the company is supposed to expect from them is that they deliver the contracted work on schedule. Uber and Lyft don't wan

  • But the company rejects this notion, arguing that no company in California or elsewhere lets employees set their own hours.

    No company in California offered an app that let's people arrange "ride sharing" either. Since no company did it we should reject everything new and just shut down the Uber scam.

    It never ceases to amaze me what humans are incapable of when they have a desire not to achieve something.

  • If the drivers were employees then the Uber would be responsible for insurance. This is California, so I'd imagine third party liability cover costs are going to be sky high.

    I suspect that most of the drivers working for Uber are not insured for carrying fare paying passengers. So if there's an accident the passengers get screwed because the driver doesn't have enough assets to cover the legal costs of going to court, much less medical costs and compensation. If you had that kind of money you wouldn't be

  • Uber could go the independent contractor model with a simple bidding process, and it could start with the PASSENGERS! Here's an example: My partner and I have just left a concert/play/ballet/etc. Before that, we had drinks with appetizers, split a bottle of wine over some dry-aged steaks, and had a dessert wine with a . . . dessert. We just dropped a few hundred bucks on the dinner alone and had orchestra seats. We're now TIRED, and maybe "in the mood." How much would I bid to drive the 8 blocks to my hote

    • 8 blocks? That's a warm-up. Walking will help settle your dinner so that you don't get urpy when you fuck. Stretch your goddamn legs, you lazy bastard.

  • Kick every Californian off the app. Problem solved.
  • All that California wants is that you acknowledge they are employees, with the same working hours, pays etc. as before, plus Uber must keep its obligations as an employer. They are not asking Uber to hire 50,000 or whatever number of new drivers.

"The vast majority of successful major crimes against property are perpetrated by individuals abusing positions of trust." -- Lawrence Dalzell

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