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Comment by dmix | Hacker News Reader

I strongly doubt that would be an unpopular outside of HN/twitter.

The solution is to update laws that reflect the future (ie, giving contractors better rights and better temporary unemployment social support) instead of protecting entrenched dying industries and their working hour/payment models, by forcing their business models to be the only one allowed.

You also don't have to defend Uber directly, this type of stuff will affect the whole market including any future or present companies that are far better run than Uber.

If you look at reviews for the old taxi companies in most cities they are all 1/5 stars. Plus they aren't shining beacons of worker protections or good pay either. Most taxi drivers were already contractors before Uber so I'm curious how these laws will affect them too.

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> The solution is to update laws that reflect the future (ie, giving contractors better rights and better temporary unemployment social support)

Agreed. Classifying them as employees, per this bill, doesn’t do this.

Employment classification comes with a myriad of fixed costs. Particularly in California. Contractors lack these fixed costs—it’s all variable. That’s what makes them attractive for unpredictable workloads.

We need a third category, a low fixed-cost zone between contractors and employees, that includes some employee rights but not others, and confers some employee restrictions but not others. That would be transformative to our economy, and strengthen it to boot. Unfortunately, that’s is not what the California legislature is discussing. (Surprise.)

> I agree with this. But classifying them as employees doesn’t do this.

Umm, I think you both agree. There's no disagreement that I see.

This isn't about protecting the taxi industry- as you rightly point out, many taxi drivers are also contractors. Instead, this is about properly pricing labor. The gig economy works now because companies like Uber (and many others) externalize the real cost of hiring labor.

It doesn't make sense to pay people low wages to the point where they need governmental assistance in the form of food stamps and BMR housing, and then pass on the savings to private companies who do their best to avoid paying the taxes that fund those programs. It ends up being other, traditionally employed FTEs who subsidize this business model via their own tax bills.

So you’re saying Uber should have to pay drivers more so that you have to pay less taxes? Sounds like everyone is acting in their own self interest and the market is working just fine...

Why should tax payers subsidise Uber?

That depends on how you determine if the market works "just fine".

From the pure view of the 30 year old customer: obviously. Low prices, decent quality.

From the view of society: not so much, as society has to now take on the costs that were previously paid by the employer (and indirectly the customer)... think food stamps or social security funded by taxes instead employer contributions to an unemployment insurance, or healthcare given that normal employment would have health insurance but many contractors don't.

From the view of the 70 year old customer living on pension and depending on taxis e.g. to go to dialysis treatment: not so much, as Uber, Lyft etc. have wildly variable pricing, compared to the regulated price of a taxi.

From the view of a customer or a third party involved in an accident: Taxis have proper commercial insurance that picks up medical costs of people involved. Uber/Lyft/other companies? Not neccessarily and either people are left with the medical bill alone or society has to pick it up.

The "gig economy" is only so cheap because a lot of cost factors that made the regular services so expensive are now picked up by society at large.

Yes why should I pay taxes to support a private company that is not profitable without taxpayer support

I am in the UK so I don't mind paying to support Medical Training, and training in stem skills those jobs are a net benefit to the state.

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