This is an example of regulation getting in the way of innovation again.
It’s like they want the medallion taxi system again.
It’s like they want the medallion taxi system again.
Instead, they had the opposite effect as taxi conglomerates quickly emerged and cornered the medallion market due to economies of scale. Individual drivers could not compete with medallions priced based on 24-hour usage.
Most drivers became low-paid employees of these conglomerates. Users suffer because drivers no longer had much incentive to keep the shared company cars clean. The conglomerates lobbied to reduce the supply of medallions to protect their now sizable investment and eliminate potential competition.
In this Uber/Lyft case we are also adding regulations which make barrier to entry higher for any incumbent companies. The complication of having thousands of salaried employees is more than most startups can handle, so we are basically cementing the established players Uber/Lyft as the only options.
If drivers felt they were getting paid equitably, had fair dispute resolution, had access to benefits, etc., there wouldn't be a need for this.
a) a class A CDL takes a lot more effort to obtain than a regular driver's licence. there's a much more constrained supply, so you don't end up with a race to the bottom on the demand side as much.
b) the quantity of hours truckers can work is set by the federal Department of Transportation. with electronic logging becoming mandatory, that'll cut down even more on people being able to work off the clock.
For taxi drivers:
you absolutely do end up in this situation. there's just no multi-billion dollar company to make headlines about. medallion owners in NYC are all shady characters too.
Nobody is forcing these workers to do ANYTHING.
Regulation would force action.
It's easy to sit from a seat of having a salaried ~40 hour week job with health benefits and safety standards, which were fought for from past generations, and then scoff when similar people are trying to fight for the same.
If by innovation you mean the abuse of people forced to work in the "gig" economy, then sure.
Starvation and rent suggest otherwise. We're not so sufficiently advanced that anyone can choose not to work and expect meals and a roof over their head.