If this actually gets enforced, I predict we'll all be talking about the law of unintended consequences in a year's time.
The biggest issue for me is pricing - the fact that drivers have 0 input to rates always made the IC designation fiction. But if the apps worked eventually like a reverse auction, where drivers got to set their own rates and you could then choose based on distance and cost, that would be much more of a true marketplace model with independent sellers.
It's interesting to think what kind of efficiencies could be unlocked with a more versatile and robust driver-client interaction. Could clients order a ride at X time to Y location and have drivers bid down to fulfill the ride? Could the bid-down process be performed automatically based on the driver's personal settings on pricing and location?
Ultimately these efficiencies would make the driver's life better. The UI for the rider may be similar and the price may be similar (or higher!) as well.
Uber and Lyft had their chance to show leadership and empower their drivers if they truly believed their drivers were contractors, rather than leaving them in some gray zone of partially contractor and partially employee.
There just really isn't that much demand for a $20 2-mile ride in the city. Uber has show that there is a HUGE demand for the same trip at $4.
No one here is saying that people shouldn't be able to drive for a rideshare company. We're saying that people who choose to do that should at least be paid a minimum wage for their time and given basic worker protections. If you oppose this kind of thing, you should probably also oppose minimum wage laws in general (which is a valid opinion).
Which situation is you believe is "better" depends on your end goal: Are you trying to make more small jobs, or are you trying to make jobs meaningful in their earning ability?
Framed another way, the people you know driving for "a little extra cash" are chipping away at opportunities for someone to be consolidating those jobs into a single, better job.
Not going to debate which is actually "better", because that's just personal opinions/economic model preferences.
No, it will probably exclude people who just want to work 2 hours some evenings whenever they have time to make some extra money, who'd make the full 10 dollars an hour like other drivers do in the time that they do work.
The "better" choice again comes down to your goal: More jobs or "better", full time jobs.
Consumers should also be considered. If casual drivers are excluded, the smaller pool of drivers will cause prices to rise. Some consumers who previously used ride sharing will go back to driving their own cars.
There's also the removal of a smooth transition driving as a career. If you can do it casually for a few hours you can discover if you enjoy it and want to quit your job and do it full time. If the only option is to be a full time employee, you have to go through the hiring process and take a risk of quitting your current job just to see if it's for you.
And this is why I'm specifically and repeatedly not getting into the discussion of "which is better". Because that's a whole other discussion.
I'm just pointing out that when it comes to job creation, there's 2 axis. Both have pros, both have cons. You say X is better, I say Y is better, objectively there's data on either side, subjectively there's opinions on both sides, frankly I'm not interested in all that. Just pointing out that there's a rational opponent to your points. Not trying to be him.
For some people, yes. But we're looking at the laborers as a whole, not the individuals (and my specific example was more from the perspective of the managers at a company with a limited budget for employees).
Some people will go from "contractor job" to no job. Other people will go from "contractor job" to "employee job".
Uber still needs drivers. They're not going to not have drivers because of this. Some people currently working for Uber will keep doing that. Some people currently working for Uber will not keep doing that. In the future, some people will apply to work for Uber and be both rejected and accepted as employees.
People wouldn't take $5 per jobs if someone else was offering them $6 or $7... so better to have 15 people learning skills that hopefully let them move up in their profession & career to higher earning occupations.
>>People wouldn't take $5 per jobs if someone else was offering them $6 or $7
Sure they would. Because a job isn't only wages, there's always some other factors involved in employment decisions. Someone might have med-school and limited free time. There's a ton of reasons why "job with lower pay and factor X" seems more appealing to someone than "job with higher pay only".
Look at game developers. They work horrible hours and often get paid less than similarly skilled devs in other fields. Why? Because demand for these jobs are extremely high relative to supply which provides management with greater bargaining positioning to lower wages.
Some of these people aren't trying to move to a career with higher earning, and see this as their end goal or "a tangential job I'm doing today". This allows them to drive down market rates on the job for people who are in a different circumstance and have higher financial needs.
We can get into a whole discussion about labor vs management and labor rights and best practices and all that. TL;dr- That's an opinion, and it's a lot more nuanced than you're making it out to be.
It's literally just "regulation bad!" with no argument backing it up