Rideshare operations are being suspended in California
lyft.com
lyft.com
A much better bill could have written that could have created a healthcare and unemployment fund of gig economy workers by taxing Gig companies, without trying box everyone into the employment model
It's not a profitable or a good force in an economy, it does not pay a reasonable wage for anyone to live on, it is not environmentally friendly unless done in large quantities of people,(which is called a bus).
Ridesharing exists to profit Uber/Lyft investors and management and is successful due to lower pricing than is sustainable. It is built on the back of loopholes in the law to use and abuse working class people and to lie about the true costs and profits.
The bill's exceptions exist to split apart reality from this subsidized artificial market (There are exemptions in most laws, purely due tot he idea that things are complex, by nature)
I see this as an attempt to make the Gig Economy pay all workers fairly in addition to healthcare costs and to put the onus on the company rather than their taxes. This would force Uber and Lyft to limit the number of drivers in an area by cost and profits, to deny those they cannot pay fairly. Uber currently may give you 100 rides a day or 1, you don't know which and you cant depend on it nor if you cant drive can get unemployment.
The hard problem is contracting work is not a known reality for most, they don't understand the costs. Dressing it up in pretty fonts and Ads makes it much like the alcohol or tobacco industries, you don't know the danger until you are very invested and nobody is there to save you.
Great summary for this scary situation.
> I see this as an attempt to make the Gig Economy pay all workers fairly in addition to healthcare costs and to put the onus on the company rather than their taxes.
There is a new word for this class of gig workers doing precarious labor that I've started using: the Precariat.
"In sociology and economics, the precariat (/prɪˈkɛəriət/) is a neologism for a social class formed by people suffering from precarity, which is a condition of existence without predictability or security, affecting material or psychological welfare. The term is a portmanteau obtained by merging precarious with proletariat.[1] Unlike the proletariat class of industrial workers in the 20th century who lacked their own means of production and hence sold their labour to live, members of the precariat are only partially involved in labour and must undertake extensive "unremunerated activities that are essential if they are to retain access to jobs and to decent earnings".
Classic examples of such unpaid activities include continually having to search for work (including preparing for and attending job interviews), as well as being expected to be perpetually responsive to calls for "gig" work (yet without being paid an actual wage for being "on call"). The hallmark of the precariat class is the condition of lack of job security, including intermittent employment or underemployment and the resultant precarious existence.[2] The emergence of this class has been ascribed to the entrenchment of neoliberal capitalism.[3][4]"
[..]
"The British economist Guy Standing has analysed the precariat as a new emerging social class in work done for the think tank Policy Network and the World Economic Forum.[6] In his 2014 book entitled A Precariat Charter he argued that all citizens have a right to socially inherited wealth.[8][9] The latest in the series is titled The Precariat: The New Dangerous Class[2][10] where he proposed basic income as a solution for addressing the problem.
The analysis of the results of the Great British Class Survey of 2013, a collaboration between the BBC and researchers from several UK universities, contended there is a new model of class structure consisting of seven classes, ranging from the Elite at the top to the Precariat at the bottom.[11] The Precariat class was envisaged as "the most deprived British class of all with low levels of economic, cultural and social capital." This was contrasted with "the Technical Middle Class" in Great Britain in that instead of having disposable income but no interests, people of the new Precariat Class have all sorts of potential activities they like to engage in but cannot do any of them because they have no money, insecure lives, and are usually trapped in old industrial parts of the country.
The precariat class has been emerging in societies such as Japan, where it includes over 2 million so-called "freeters".[12]"
Taxis are an obsolete service, Lyft and Uber are overwhelmingly favored by customers and businesses.
This is like McDonald's paying workers $3 an hour, charging $2 for a value menu meal, and then people saying 'wow, McDonald's has made Burger King obsolete!'. Of course customers will prefer the cheaper service that screws workers and does not pay fairly, but (some) workers will work it because it's their only choice.
- A way to pre-pay
- A way to communicate current location and destination clearly to driver
- All from an intuitive app on your phone
I'm guessing you never went to NYC, tried in vain to find a taxi when you needed one, then got a taxi driver who barely spoke English, tried to communicate where to go, ended up paying way more than you intended?
Wait, so I get a comfortable ride, I get it fast, I get it cheap, somebody else pays for the majority of it, that somebody else has tons of their own money, not coming from my taxes, which they spend willingly on giving me a good cheap ride - and somehow this is a bad thing?
After competition dies out prices will skyrocket.
If I knew how to answer questions like that, you'd see me on TV giving interviews about my trillion-dollar hedge fund.
> After competition dies out prices will skyrocket.
I have yet to see a single scenario where this actually happened without being a product of government-granted monopoly (e.g. patents in pharma). But if Uber is going to charge me 3x for the same ride (just as taxis do now) I'll stop using them (just as I stopped using taxis). In the meantime, I've been saving money for a decade. I think it's a good deal.
I think we can all agree that taxis sucked before Uber/Lyft forced them to update. But that doesn't mean we can't have a better taxi experience using the tech stack Uber/Lyft created.
How do you think about taxis v.s. Lyft / Uber (which I would call "taxi services")?
And this in one of the most prosperous economies in the world.
Do you not understand that this is what you're arguing for?
Do you also not understand that if you don't already have a huge pile of fuck-you money as a buffer, your privileged steady middle class job will be next to be "disrupted" - likely by the end of the decade?
Because why would your employer's customers pay more than they feel like paying when they can the same service from an automation-aided gig economy developer who has been beaten down to the point where they're two weeks of savings away from being homeless?
We can afford to pay people, but the problem here is that it's not just me paying you a bit of money to cover your gas, insurance, mechanics, and time; it's also me paying for tens of thousands of employees and cloud datacenters and all the rest to connect me to you. That's a lot of overhead, and it's duplicated by virtue of multiple companies being in the mix doing the same thing.
Also, it was never really supposed to be a career - it was supposed to be something you could do on your way to work to help subsidize your own commute. Making a career out of a side job is certainly one's own choice, and I don't want to get in the way of that, but... are people getting benefits and guaranteed hours for busking, or being a living statue? Are people guaranteed a certain minimum pay for their lemonade stand?
Having a high overhead and not charging customers enough to recoup it sounds like a flawed business model to me.
>Also, it was never really supposed to be a career - it was supposed to be something you could do on your way to work to help subsidize your own commute. Making a career out of a side job is certainly one's own choice, and I don't want to get in the way of that, but... are people getting benefits and guaranteed hours for busking, or being a living statue? Are people guaranteed a certain minimum pay for their lemonade stand?
No, but they're also not told that they can make a living, get benefits, etc. for busking, being a living statue or running a lemonade stand. They understand from the outset that none of that will be happening. The difference here is that Uber/Lyft imply - if not state explicitly - to their drivers that it can be their sole source of income.
If it's supposed to be a method of subsidizing your own commute, shouldn't Uber/Lyft be restricting who drivers can pick up to only those customers who are heading in the same direction/on the same route that the driver has told the app they're going?
If it's supposed to be a method of subsidizing your own commute, why do Uber/Lyft assist car-less folk with obtaining rentals?
In terms of motivation a democratically elected leader motivated by the interests of their constituents is a better Stewart of the minimum wage than an un-elected boardroom whose primary motivation is investor value not the quality of life of the citizenry.
As a customer, I might favor the Uber/Lyft experience over a taxi, but I sure as hell don't favor the way that Uber/Lyft treat and pay their drivers. There's a difference.
But if you do agree with that, shouldn't we resolve inequalities by directly supporting the least fortunate (with cash) rather than force parties into arbitrary economic relationships?
For example, an upstart McDonalds-like chain that uses App-ordering could charge much less for a burger if they paid $3 an hour. Consumers would obviously choose this chain if tyhe product is still good as it is much much cheaper. (Capitalism obviously doesn't have a conscience.) For this reason, we have minimum wage laws and (somewhat as a hack, I don't agree with the rules) health care mandates for employers, to create fair and legal playing fields to ensure that businesses' are taking action to better the economy and the American people.
I suppose a universal point I am trying to state here is: Corporations exist to better the people. Wouldn't it be overall more efficient if the the company paid fairly and the people who work for that company don't have to then request funds from the government? This ensures competition is possible by setting a floor on the race to the bottom costs.
They are not the best way to allocate resources - not least because they have huge social and political opportunity costs which are rarely understood by their fervent devotees.
Cash is not a solution to this, although it can be a productive first step in some limited circumstances.
The "arbitrary economic relationships" here are the ones being peddled by Uber and Lyft.
The point is neither Uber nor Lyft are viable businesses. Even with its advantages Uber is somehow managing to lose $3bn a year on its ride sharing service.
It only exists at all because investors hope it will somehow be able to throw its beta-drivers under the proverbial bus when self-driving cars finally become a thing, and too many of its drivers aren't aware of this and are expecting it to act like a long-term employer.
i think the word that jumps out at me here is "best". what does this mean? is there an absolute agreed-upon best, or is best relative?
in this situation (re: ride-share companies), i think it's entirely possible that there are overall market wins -- more money ends up circulating -- but that there are local losers, specifically the employees of these companies, and local winners -- the management, investors, and employees of these companies -- and that the group of losers actually outnumbers the winners.
some folks put the rideshare-using public into the group of winners, which i think is debatable.
either way, i think it should be permissible to defend the group that's least able to defend itself -- rideshare drivers who are doing gig work to make ends meet -- even if that results in "suboptimal" global outcomes.
i think this debate broadly parallels the overall debate in neoliberal economics. for instance, yes, trade makes everyone better off on average, but in practice it makes some folks (the 1%) much, much better off, and impoverishes broad groups of other people.
i think i heard from this podcast: https://www.vox.com/2020/7/17/21327166/american-compass-the-...
the term "economic piety" -- the naive idea that by growing the pie, everyone becomes better off. this hasn't proved to be true in practice, and some economists are beginning to regard the idea with a bit of embarrassment.
My point is that instead of inspecting every economic relationship for "winners" and "losers", we should tax the winners and support the losers at a global level.
I'm not in favour of a return to the 40 hour workweek which seems arbitrary and archaic and smacks of throwing the baby out with the bathwater. I would prefer an equivalent to the 40 hour workweek for contractors, we have price controls for farm workers, but for some reason act as though it's normal for Uber drivers to work for effectively well under minimum wage. We need to ensure the drivers are getting a bigger share of the proceeds at the time the profits are being generated, not afterwards after labour has lost all of its negotiating leverage and granted a massive warchest of money to capital. States like California should be competitive and fight for a share of profits, not passively roll over.
Why is the purpose of a wage to live on? Many uber drivers drive part time for fun or extra pocket change. The existence of thousands of uber drivers -- who in my experience, have all been quite reasonable, nice people -- seem to directly contradict your claim that it does not pay a 'reasonable wage'. Clearly, it does for those invested parties.
> The existence of thousands of uber drivers -- who in my experience, have all been quite reasonable, nice people -- seem to directly contradict your claim that it does not pay a 'reasonable wage'. Clearly, it does for those invested parties.
Maybe we can leave it up to the academic researchers and labor rights organizations? Why do you make a claim and link to no sources, please could you provide your sources?
Here are some sources I found:
https://www.weforum.org/agenda/2016/11/precariat-global-clas...
https://www.yesmagazine.org/issue/gig-economy/2016/08/25/for...
https://www.theguardian.com/business/2020/jan/29/gig-economy...
https://www.theguardian.com/books/2019/aug/31/the-new-resist...
https://www.theguardian.com/business/2018/nov/20/high-score-...
> Why is the purpose of a wage to live on?
This isn't a serious question is it?
"The Precariat is the first class in history to be losing acquired rights – cultural, civil, social, economic and political. This is documented in A Precariat Charter. It leads to the most crucial feature. Those in it are reduced to being supplicants. The Latin root of precariousness is “to obtain by prayer”. The precariat must ask for favours, for charity, to show obsequiousness, to plead with figures of authority. It is degrading and stigmatizing." [1]
[1] https://www.weforum.org/agenda/2016/11/precariat-global-clas...
when did that happen in the 19th century?
The main reason I can't get on board with the rest of this line of argument is that it ultimately just comes down to paternalistic protection of the poor disenfranchised gig workers that you clearly view as being less than capable, rational adult humans. The number of gig economy workers has been growing exponentially for years? Somebody must be tricking them into taking this shit work, and confusing them about the real costs.
Gig economy workers have overwhelmingly spoken that they like this work, by continuing to sign up for it in massive numbers. Or at least that they like it more than their alternatives at the time. If it were some massive trap, don't you think the word would have gotten out by now? The ability to entirely set their own schedule and work as much or little as they choose is appealing enough to draw people in in droves, despite all of the downsides of this type of work.
Getting rid of Uber and Lyft completely throws out the baby with the bathwater here. It won't magically create alternative full time jobs that these workers will prefer to their current situation, it'll just make it much harder for many of them to have any work. Surely there are better incremental policies that could limit the downsides for many of these workers without taking away most of the positives for them too.
As with many far-leftist beliefs these days, I can't help but conclude that the driving factor for a law like AB5 is punitive anger towards successful, wealthy organizations. Just like with the NIMBYs using socialist rhetoric to justify blocking needed middle class housing, it's much more important that the organizations they see as the bad guys suffer than it is to maximize the overall, utilitarian good for the parties they claim to care about. I sincerely hope this way of thinking dies out, almost as much as I hope the current far-right way of thinking dies out.
Isn't this same 'paternalistic protection' the same force Silicon Valley uses to guarantee monopoly rents from 'intellectual property'?
"A globalised intellectual property rights system was immensely strengthened by TRIPS (Trade-Related Aspects of Intellectual Property Rights) passed through the World Trade Organisation in 1994, shaped by a few US multinationals, backed by the US and UK governments. This has facilitated the commercialisation, privatisation and colonisation of ideas. Since 1994, the annual filing of patents has more than tripled, with the global stock of patents close to 12 million, each giving monopolistic control of some idea for 20 years or more.
Many patents result from publicly-funded research, diminishing the risk. But TRIPS allows corporations to receive monopolistic income for two decades, or use the patent to block others from producing something. Those claiming to believe in free markets should have opposed the trend, but reveal their class-based ideology by keeping quiet. There is evidence that the patent system hinders economic growth and innovation. It merely increases inequality and rentier capitalism. George Osborne, as Chancellor, made it even more blatant with his Patent Box tax break that in practice benefits multinationals coming to Britain if they have patented products, particularly Big Tech and Big Pharma. That tax break merely accentuated the plunder of the intellectual commons." [1]
[1] https://www.opendemocracy.net/en/oureconomy/plunder-commons-...
Not sure how this applies to the current conversation though, of all the things that Uber and Lyft are commonly accused of I don't think protectionist patent enforcement is among them?
You mentioned you disagreed with all of the OP's substantial arguments, and then you made a few claims without any sources to back it up. I am using your idea of 'paternalistic protection' to challenge a commonly held idea which posits that the current neoliberal regulations are somehow neutral. Your statement that the big tech gig-worker platforms provide likeable or meaningful jobs is very misguided and naive imo.
To address one of your statements:
> Gig economy workers have overwhelmingly spoken that they like this work, by continuing to sign up for it in massive numbers.
“Uber is lauded as an exemplary ‘platform’. When it arrives in a target city, it launches a packaged recruiting programme for drivers, usually offering incentives. Then it undercuts official taxi fares by operating a flexible, demand-based fare scheme; this lowers fares at times of slack demand and raises them when demand is strong so as to attract more drivers. Once established, Uber uses drivers to offer other services. Just as Google uses search-related advertising to generate income with which it enters other businesses, so Uber’s plan is to offer ‘transportation as reliable as running water, everywhere for everyone’.9
Thus it has branched out into delivery services, providing lunch delivery, cycle courier services and deliveries of household supplies in various US cities. It reaches out to retailers as well, offering same-day deliveries. While others such as Postmates and Shyp are in the same space, Uber has greater scale and financial clout. It can raise cash quickly from new city operations and has been able to tap investors for huge sums – more than $9 billion by the end of 2015 – with which to intimidate competitors.
This has enabled Uber to finance operational losses as it expands into new markets by undercutting actual and potential rivals. According to leaked documents the company prepared for investors, operational losses reached a staggering $1 billion in the first half of 2015.10 Yet Uber more than doubled its cash holdings to over $4 billion, giving it a handy war chest for future expansion.
Private equity financing enables Uber to squash competition through predatory pricing, extracting greater rents as its near-monopoly strengthens. Other start-ups are also gaining near-monopoly positions with the help of venture capital. They are not competing in free markets.
The USA has led the way. Paradoxically, private investors and private companies, as opposed to publicly listed companies, were boosted by the US Jobs Act of 2012 (Jumpstart Our Businesses), which was supposed to encourage firms to go public and list on Wall Street. President Obama said at the time that public companies were desirable because they expanded more quickly, created more jobs and operated with ‘greater oversight and greater transparency’. But, whereas previously private firms were required to publish detailed financial information once they had over 500 shareholders, the Act increased that to 2,000. As a result, many more companies can opt to stay private so as to keep control in the hands of a restricted group and avoid public scrutiny of their dealings.
The capital for digital platforms, even the largest of which have chosen to remain private, comes from a narrow circle of investors from mutual funds, private equity firms, hedge funds and sovereign wealth funds. It is a market reserved for the elite and plutocracy, a sort of closet capitalism. Making it even more so, investors often demand assurances that the company will indemnify them if it goes public at a lower valuation. This ‘ratchet’ arrangement grants them extra shares to compensate for any shortfall. They thereby receive a free insurance against risk, a special form of rent.”
[...]
“In the first round of this predatory model, the taskers (in this case drivers) may be among the beneficiaries, receiving loyalty premiums. But this is likely to be short-lived once a platform has established monopoly control of the market (or possibly oligopoly control by several platforms that tacitly agree to divvy up the market). The earnings of Uber drivers have already been cut in cities where the company is successfully established.”
- Guy Standing, The Corruption of Capitalism: Why rentiers thrive and work does not pay
I agree that portions of the left can be paternalistic sometimes, but that doesn't mean Uber and Lyft aren't exploitative.
Working as a driver for uber/lyft isn't really like that at all. You know approximately how much you can stand to make per hour. There isn't a small pool of drivers somehow making tons of money at the expense of the rest. Being a driver isn't predicated on mistakenly calculating your odds of winning big.
Sounds like Uber to me.
Not exactly, but there are parallels. Most drivers don't take into account the costs of wear and tear on their cars, which can be significant, and Uber isn't transparent about how drivers should anticipate those costs. So part of your wages as a driver are essentially borrowing against the future value of your car. And it can take years before the wear and tear becomes apparent, so many current drivers may not have run up against that reality yet.
Let's not beat around the bush, the appropriate term already exists, it's called a "taxi service". The fact that the taxi operators provide their own vehicles is not novel.
Uber is a pretty standard black-car taxi service, with an app.
But either way that's irrelevant to the general point of whether Uber's general business model is that of a black-car taxi service.
The feature set doesn't have to match exactly to demonstrate that taxi service will not vanish instantly from California if Uber decides to leave - taxis existed before Uber and they will exist after.
Uber could increase fares and continue operating if they choose. If they decide it's not worth their time, c'est la vie, there will be others who fill this niche instead.
This is just a transparent ploy to use the employees as leverage to reduce their operating costs, they will actually continue operating here even if it passes.
* The taxi company, who offers fares to the driver * The driver, who operates the vehicle * The owner, who owns the vehicle
This means that at the end of the night, the taxi driver has to pay out to the taxi company and to the vehicle owner. This makes it very easy for a bad night to be a financial loss for the driver, since they still have to pay out regardless of whether they got good fares and tips or awful fares and tips.
I've had friends who've done it just because they enjoy meeting people who are coming into town and hearing their stories, telling them about the area, etc. Many of the rides I've taken, upon talking to the driver, they'll say they do it because it gets them out of the house and they can work whenever they want. Very few of the people were trying to use it to replace a conventional employment situation.
We should all be grateful that the state is rescuing all of these people from the exploitative habits of these unprofitable companies, I guess.
Similarly, if a market is saturated with under-paid over-worked labor forces, then you can't end up with humane, fair alternatives. You'll get those when you eliminate the exploitative markets first. Uber & Lyft didn't make new markets. They didn't create new job opportunities. They replaced existing ones - namely, taxis, and they achieved disruption via unsustainable economics & exploitative practices. There's no reason to believe that when that hole is plugged that all "order a ride" services will vanish. We'll just have taxis again. Remove some of the barriers that gave taxi services pseudo-monopolies, and there you go.
Corrupt, exploitative industry gets replaced with less corrupt, equally exploitative industry while also delivering far better value to consumers. Seems like a win to me.
Why are we so up in arms about Uber, when Dominos delivery drivers get about the same paltry compensation, no benefits, and far less freedom? The same could be said for pretty much all minimum wage jobs.
Like the parent insinuated, all these socialist / egalitarian arguments don't explain why we are in such a rush to fix for Uber drivers what has been broken for every low-paying job ever.
(That being said, with a rise in independent contractors, we should fix unemployment insurance to include them)
How in the world could you argue that they didn't create markets or job opportunities? There are probably 10x more uber/lyft drivers in almost every city in the US than there ever were taxi drivers. People simply take more trips, or have someone else drive them when they would have previously driven themselves, now that Uber & Lyft are so prevalent. People order delivery food from restaurants more often instead of cooking for themselves. This is new money added into the economy, yes a big slice goes to the corporations, but only ~30%, the rest goes directly to drivers for whom this is a newly available source of income. Apparently 80% of drivers do it part time as an additional source of income, which they wouldn't have a way to generate otherwise.
You seem to fit very cleanly into the category I just mentioned above, you're so angry about some perceived injustice of Uber & Lyft merely existing, that you want them to be punished more than you care about any other part of this outcome. And this is not a slavery ring, nobody is being exploited, so you should take a deep breath about that too. In polls drivers overwhelmingly express a preference to remain independent contractors rather than become full-time.
This reflects the fact that they like to eat.
Also, the social services for anyone from what I've heard (as I live here but haven't used them myself) are sufficient but not always comfortable. It's noticeably far from a welfare state model like Sweden is made out to be.
I'm not trying to argue that Switzerland is a bad place for those who are unemployed, but that there are reasons that many people here wouldn't want to depend on it if a low-commitment job like driving for Uber is available.
http://peterturchin.com/cliodynamica/intra-elite-competition...
That is one way to editorialize what is going on. An alternative explanation is that human organization is inherently a high friction, high cost endevor, and in the case of a company vs workers/contractors, we have a massive assymetry in the degree of organization in incentives; a company is a well defined entity, gathered around the normativity of profit maximization, every stop and turn of its machinery is well oiled and properly encoded, acting as a single agent in every negotiation. Whereas workers/contractors, even though have their individual interests heavily aligned (don’t be stiffed, get a fair wage), this alignment is not by default organized, as the employer-employee relationship is a one-to-many relationship. This asymmetry, not paternalizing non-adult humans, is what drives the unfairness in negotiations in favor of companies.
Unions, legislation etc merely represents an effort in organization of the will of the “many” and to cure this asymmetry. Not saying they are perfect, not even that they work, but there is an asymmetry that gets exploited.
> Gig economy workers have overwhelmingly spoken that they like this work, by continuing to sign up for it in massive numbers
The problem in this model of negotiation is that the gig workers choices of expression are limited to “work or gtfo”. For one, given the fact that people need money to live, their participation doesn’t necessarily mean “they like this work”. Going back to the organization principle, if they were to carry out the combinatorially explosive task of communicating among themselves that they would want $5/hr more payment, or they would not work at all (quite symmetrical to the maneuver lyft&uber pulled today) it is very likely that they would get it. But “work or gtfo” binary doesn’t allow any room for expressing that. In other words, current price point is an artifact of lessened negotiation power of the collective gig workers because it is not as easy for them to negotiate collectively as uber/lyft can set the pricing.
> Getting rid of Uber and Lyft completely throws out the baby with the bathwater here.
No one is suggesting this. Not saying that the legistlation that was proposed is perfect, but the argument is “let’s level the playing field” and if Uber and Lyft can exist under fair conditions, then they do deserve to exist.
There is nothing far-left or vindictive about this. It is catching up with the innovation of exponentially scaling, tech based, loss-leader market captures. It is as far-left as reducing work days to 5 or outlawing child labor was.
Exemptions are a leading indicator of ineptness or corruption.
Of course, its probably not in your best interest to mention this to the company you want to work with since they'll probably just choose to work with someone outside of CA instead. Just be glad their legal counsel (if they have any) doesn't know enough about this law to cause you more headaches.
But when it comes to the vote in November, a vote to exempt Uber/Lyft from AB5 is a vote to strip drivers of all protections. Uber and Lyft will be free to go back to exploiting drivers for <$10/hr [1]. I don't think I can tell someone else they don't deserve to earn minimum wage.
Maybe you are hoping the legislature will eventually come up with that third way once forced to, but there's a lot of momentum behind a popular vote. No US legislature has proven themselves particularly effective in the last few years. Let's not leave people out to dry while hoping some politicians will do their jobs.
[1] https://www.vox.com/2018/10/2/17924628/uber-drivers-make-hou...
On the wage issue are you talking about the specifics of how prop 22 defines the earnings floor for drivers [0]? It definitely sets a standard even. It pays some for expenses ($0.30/mile) and the 120% minimum wage while on a ride covers a bit of time spent driving between rides. I could see though how if you have high expenses and don't get many rides you will not earn the minimum wage.
0 - https://ballotpedia.org/California_Proposition_22,_App-Based...
I don't love that Uber/Lyft basically drafted Prop 22. There are features like only paying Engaged Time and not pinning the extra per-mile rate to the IRS standard (which is $0.57 per mile in 2020) which you can tell benefit them. That being said, my argument about removing wage protections is certainly dampened by the new earnings floors.
Exploiting? Can you please cite another industry that has the capacity to employ millions of unskilled labor people at $10/hr and ALSO allow them the freedom to set their own schedule?
It's clear you've never worked a minimum wage job before. Flexibility on hours is next-to-impossible at these jobs. If people are willing to make a few bucks an hour less for that flexibility, who are you to call it exploitation?
It's not like these companies are minting profits. The alternative is these people go back to work at McDonald's and also get no benefits while being scheduled at such bizarre hours they can't even go to school and educate themselves.
Shrinking the pool of employment choices for these people does nothing to help them actually get healthcare. My mind is still blown at how the American solution to workers not having healthcare is to attack individual businesses instead of looking across the Atlantic at how the rest of the world solved this problem.
Possibly because they're dramatically undercharging, loss leading, to get "market share"?
Undercharging, and drivers being paid "not very much" seems like two issues that are ... very much related.
I actually know of a system by which you could do that on a grand scale...for every single worker in America. Not just rideshare drivers!
It's a concept commonly found in a far away continent most Americans have only dreamed of one day traveling to, called "Europe." How it works is simple. You raise prices throughout the entire economy via taxation, and then redistribute that money back to the less fortunate via a government provided healthcare program.
...And here's the best part, studies show it ends up lowering the price of healthcare for everybody. I wonder if something like that might be a better use of our time than trying to put Lyft out of business?
However, given the system under analysis, because corporations have a history of making it very difficult for labor to be paid a fair and living wage, it falls to the government to use the tools at its disposal to ensure (as much as possible) that employees are paid fairly and have an opportunity to spend that pay on health insurance, because corporations won't be volunteering to do that, especially if they're already burning in excess of a billion dollars a year.
Because it sounds very unnatural for a social animal such as us humans to try to be completely self-reliant... We depend on others, we always have been and we probably always will, so leverage that instead of striving for some weird artificial sense of independence.
Here's what I don't understand about uber/Lyft and finance people who invest in them:
- they are loss makers bleeding serious money.
- Fedex tried the independent contractor routed and was required to make them employees too.
Where is the business sense here?
Why should employees give up rights just because it's the 21st century? Make no mistake, that's Uber/Lyft's entire advantage over traditional taxis: skirting hard-won employment regulation to lower costs at the expense of workers.
Why does this keep getting repeated? They're not contractors. They have little-to-no control over who their "clients" are. They don't develop relationships for repeat service with those clients; don't set their rates (I'd gladly pay some drivers more than others); are forced to jump through hoops to maintain 4.X ratings or they're booted. The only thing they do have control over is when to start and stop working. That's just a much more flexible part-time job as far as I can tell.
Nobody is guaranteed a contract either. If you don't perform satisfactorily then the contract is terminated. No different than tech support that are rated poorly in communications.
Drivers control their rates [1], when they work, where they work, how long they work, and which rides they accept (with user, time and direction shown first). Only thing missing is destination upfront, however that can change anyway. No different than tech support dealing customer requests regardless of effort.
I don't live in CA but used to do a fair amount of work travel out there. If they don't have Uber/Lyft in the future, I'll just make work get me a rental car.
The Bay area is finally electrifying Caltrain, which has the potential to connect the South bay in more ways then the current commuter connection. BART is also being expanded both in the East bay and the South Bay. And the only reason you are not getting a high speed rail to South California is because politics got in the way. But this high speed train will go between Bakersfield and Merced, making it the first true high speed train in the USA. All this while the Metro in LA is expanding and adding much needed connections in South California.
This all said, Marin County is an incredibly affluent part of the Bay area, it could really easily fix their connectivity issues to the rest of the Bay area with better and more frequent buses (I wonder why they don’t).
Sure, I will admit, California has some problems when it comes to their public transit projects. But pointing to the richest communities and how they are not getting trains is not a good example of those problems.
EDIT: Previously wrongly stated that there was a BART station close by.
Also the acceleration and deceleration will clear the tracks far easier and quicker for the next train to arrive, leaving less congestion during peak hours and less load on the system overall.
It's easy to see all the folks here who don't remember having to wait an hour for a taxi to show after calling, if it ever did. Pushing a button on your phone and getting a ride five minutes later is magic in comparison.
Don't forget that this thing is subsidized. It never proved to be profitable. These companies invested huge amounts of money in lobbying all over the world, fermenting social unrest and subverting democracy for a failed business model.
They try and play a long game where we both lose workers rights, and have only bad monopolistic transportation available.
I understand your point but I'm not sure it's relevant. Taxis managed to survive for a long time without any artificial money injection, it's probably at a stable equalibrium. Allowing this artificial market to keep growing is just a endorsing a bubble. The bigger it gets the worst the collateral will be when it'll finally collapse.
Is that something mandated by California? As far as I know, everywhere else I've been, work-schedules and anti-moonlighting are restrictions placed by the employer, not the state.
From the HN guidelines:
https://news.ycombinator.com/newsguidelines.html
> Be kind. Don't be snarky. Have curious conversation; don't cross-examine. Comments should get more thoughtful and substantive, not less, as a topic gets more divisive.
> Please don't comment about the voting on comments. It never does any good, and it makes boring reading.
If you're an employee on the clock, you can't be on the clock for two different organizations at the same time.
I mean, I don't see why not. Would create some inefficiencies. But I don't think there is a law against that.
Until one time there was a problem with one of the jobs (which meant other jobs could not be run) and no one had their data in the morning. He was asked why he didn’t contact one of us for help and didn’t really have an answer.
The boss checked the cameras to figure out what this guy was doing. Turns out the guy came in, started as many of the jobs as could be run in parallel, then left to work his shift at another place, came back on his lunch break and fired off another round of jobs, left and finished his shift at the other place, then came back and finished his shift at our place (our shifts were 10-17 hours long). He was confronted and admitted it. I don’t recall if he was fired or if he quit.
You can absolutely argue that the job was stupid and should be automated (it should've been) - you can absolutely argue about whether that person was feeling societal pressures to work two jobs and felt like this was the only way to make ends meet. Both of those points are tangential, though - a lot of folks face them.
He still either fraudulently reported hours (if paid hourly) or failed to meet the expectations of his employment contract. And, in the end, it actually caused other people to likely do overtime to cover up for his skimping.
> You can absolutely argue that the job was stupid and should be automated (it should've been)...
Yes. See my reply to another reply.
> you can absolutely argue about whether that person was feeling societal pressures to work two jobs and felt like this was the only way to make ends meet.
In this time and place, I worked three jobs (separately, and with my employers' full knowledge) and had all my bills paid off the first week of each month. With only (and any) one of those three jobs paying my bills off would have taken about 2.5 weeks. Each job was technically unskilled (although skills helped) and required only a high school diploma.) It was a very prosperous time with low unemployment. I've never been one for societal pressures, but this guy didn't have kids (neither did I at the time); which I think would have been the strongest defense.
> And, in the end, it actually caused other people to likely do overtime to cover up for his skimping.
It definitely had some downstream consequences... possibly overtime but I can't be sure, and although most of the people involved were salaried, on a personal level, they ended up staying later than they otherwise would have.
I don't see why that would not be possible.
Of course these companies prefer not to, because their business model is now based on exploiting workers.
Assume the employers did not collude for an employee on shift at both employers during a given time period (say 9am-1pm):
- Uber says to idle near LAX, because that fits what Uber needs at that time.
- Lyft says to idle near BUR, because that fits what Lyft needs at that time.
Those locations are approximately 37 minutes away as I write this, despite both being quite logically in the same metro area. It's eminently reasonable to expect an employee to serve an area that encompasses (even much more than) the area between those two points, so an employee would not reasonably get a routine say in where inside the region she is asked to idle.
QED the only way to routinely guarantee that Uber and Lyft ask an employee to idle in the same location is for Uber and Lyft to collude on staffing decisions. This opens up other legal concerns (and may be illegal).
It's the same reason that an employer can't make all their employees clock out when the factory production line stops to fix a problem.
We often think of "on the clock" employment in terms of shift work, where the worker has a scheduled, fixed-length shift with a single employer, and whether they're actively working during that time or waiting around for the employer to tell them what to do next, they're paid for the hours on the clock.
But it is possible for ridesharing companies to employ workers in "micro-shifts" that last the duration of a single ride.
So, Driver X has two part-time jobs: as a part-time employee of Lyft and a part-time employee of Uber. Driver X is ready to work, so checks the apps, and sees there's a Lyft assignment available. Driver X accepts the ride, and for the duration of that ride, he is working exclusively for Lyft, and Lyft pays him for the time worked. Once that ride ends, his micro-shift with Lyft ends, and he's now available to work for either of his part-time jobs again.
The idea of micro-shifts may seem, at first blush, more like a contractor relationship than an employee relationship. And in the past, gigs that used this model were more likely to involve a contractor relationship -- but they also gave the contractor much more freedom in terms of HOW they accomplished the work.
In contrast, if you look at Uber and Lyft, ignoring the micro-shift aspect, there is very little difference between how those jobs work and how other service-oriented part-time jobs work, in terms of the power the employer has to dictate HOW the work gets done.
What the word "employee" means within the context of California labor laws is probably quite different from what we understand it to mean in everyday conversation. What one can imagine might work in an abstract sense may not be even remotely possible within California's legal framework. What is known to already happen and work well in other states isn't necessarily possible in California, either. (At least not without getting the legislature involved.)
Your freelance tutoring is not employer/employee work. You're a freelancer. You set your own hours and rates.
Lawyers do not work for multiple law firms, choosing which firm to work for as they see fit. Whereas drivers very often work for both Lyft and Uber (and Postmates or Grubhub, etc) at the same time.
But to go back to the tutoring example: if I was working for a tutoring company, agreed to take clients between lets say 1-5 PM, and the rate was set by the company, would that be similar enough?
That said, there is certainly a good reason for minimum-length shifts and on-call payments in other industries, so I'm willing to acknowledge that striking the right balance that protects workers across the board might be difficult.
Just because someone is an employee doesn't mean the employer can't give them flexible hours
california is forcing all rideshare contractors to be employees. that's not just a checkbox on a form.
The dissonance here is amazing. Uber and Lyft literally started operating in cities and countries where rideshare was explicitly outlawed, hoping they would come around. But now that they had a year to prepare for this, all they found it in themselves to do is pick up their toys and go home? Don't fall for it.
Determining whether someone is an independent contractor has always involved multiple factors. Flexibility of working hours is just one of the factors.
You cannot say categorically that having the ability to choose your own hours makes you an independent contractor rather than an employee.
Other factors include:
* What level of control does the employer have in dictating HOW the work is done?
* Is the worker performing work that is outside the usual course of the employer's business?
* Is it customary for the work to be performed as an independent trade?
The employer's business is connecting cars to riders with software. The driver's usual job is HR, and he uses the lyft service to make extra cash on his way home.
The last point is not something that determines a contractor. What you choose to do for money does not have to be a trade. It can be anything.
There are no working hours. You don't get paid by lyft for hours you 'work.' You get paid for engagements you pick -the rides. Getting paid per project, not for time you put in makes you a contractor for that gig.
That doesn't sound very independent to me.
W2 means you get paid salary or by the hour. Have you ever seen a W2 stub? It doesn't have 'projects' on it. It has a pay rate. Becoming W2 for drivers means they have a salary, and a bonus. So now they're hourly employees. This is literally on the W3 form employers submit to the IRS every year. Not knowing the paid amount before hand is one of the things making it a contract, yet you're claiming not knowing how much you will get paid makes it W2. Amazing gymnastics.
paid per project you choose yourself =contractor. salary or rate =employee.
determining how much you get paid has nothing to do with employee or not. in fact, as I keep stating, not knowing how much you get paid literally makes you not an employee.
And if you are hiring Joe to work 40 hours as an Uber driver then you need to make sure he works 40 hours that make sense. Thus benefits require a minimum number of hours, and a minimum number of hours requires a schedule.
And it's not so much anti-moonlighting as not being able to work for multiple companies at the same time (hour). Right now, a driver often is waiting for both Lyft and Uber riders. If they're an hourly employee, they obviously can't do that anymore.
So no, none of this is mandated, but it's the only way a business could operate.
that's just the existing on-call model. it's quite easy to imagine that a service overprovisions to account for people not being required to accept a "page". that overprovisioning specifically is so that people can hold multiple on-call type jobs simultaneously.
Ah, you say, but what about them being "on the clock" while not actually being willing to drive? The same thing that happens if they turn down a Lyft ride because they're driving an Uber customer: you fire them. And possibly charge them with fraud.
From what I've read here, it seems like all of the "only way a business could operate" responses are based on Uber or Lyft propaganda.
It's not that the law dictates this shift, it's that the economics do. Requiring full employment means you can hire less drivers.
If you have less drivers, you need more control over when they drive in order to make sure when customers are looking for a ride, they can find one, hence shifts.
I do see a potential problem here of the interests of people who do this as their job being unnecessarily put into direct conflict with the interests of people who don't do this as their job.
A business model that relies on unfair business practices is not a viable business model. We just need to make sure that the employees caught in this transition have a social safety net that protects them from the financial repercussions of implementing these higher standards for all employees.
Why would someone work 2 part-time jobs at $12/hr instead of one full-time job at $12/hr?
It’s the very same thing as say a driver can’t give a passenger a ride for Uber at the same time they are giving a ride for a Lyft passenger.
> It's usually not feasible to work for both, because they both might end up scheduling you in the same time slot.
You are essentially trying to argue no one Can work 2 jobs because of potential scheduling conflicts. Plenty of people work 2-3 jobs, often times for competitors in the same industry.
The best solution is for the state to end the distinction between independent contractors and full-time employees. I wonder if there's a way to manipulate state corporate taxes and credits to essentially nullify the federal employee status rules. Increase corporate state income tax, use the revenue to credit the employer's portion of social security tax and the independent contractor's excess social security tax. Put a state sales tax on group medical insurance plans and use the funds to provide a public option. Could get complicated, but there's probably a way.
You can check their S-1 filing for the “economics” of it...Uber before going public was losing money and acknowledged the legal risk they had been misclassifying drivers as contractors and should drivers be reclassified as employees it’s an existential threat to Uber.
That’s the economics of it...Uber knew they were in the wrong, they knew the day of reckoning was coming and investors took the damn thing public for maximum profits and to cash out and leave others holding the bag.
But the reality is the whole employee/independent contractor issue is just a scapegoat for investors to point their finger at regulations and say that’s why the business failed, but the truth is even without the illegal classification of drivers Uber would never have turned a profit.
You took a potentially objective point and added a ton of spin to it :/
Of course they don’t admit they misclassifying the drivers, but Under the S-1 risk factors:
The independent contractor status of Drivers is currently being challenged in courts and by government agencies in the United States and abroad. We are involved in numerous legal proceedings globally, including putative class and collective class action lawsuits, demands for arbitration, charges and claims before administrative agencies, and investigations or audits by labor, social security, and tax authorities that claim that Drivers should be treated as our employees (or as workers or quasi-employees where those statuses exist), rather than as independent contractors... Nevertheless, we may not be successful in defending the independent contractor status of Drivers in some or all jurisdictions... any such reclassification would require us to fundamentally change our business model, and consequently have an adverse effect on our business and financial condition.
In fact the IPO includes citations to multiple lawsuits including one they settled for $20M for improper classification.
I drove a taxicab for more than a year back in the 90's. That's the way it worked then. Most drivers were shift because they "rented" the car from the company and shared it with other workers. A few drivers were owner-operators who got to set their own hours. This is closer to the model that Uber & Lyft operate under today.
So when Lyft claims that they would be forced to enforce shift work on their owner-operators, this is a lie. There is already a model for this type of driving that predates Uber & Lyft and they're just choosing to ignore it now because it serves their current interests.
Is there anything in CA law that prevent Lyft from basically doing exactly what they had been doing but also paying payroll taxes on driver income?
What really needs to happen is that conversion rate needs to be established for this kind of work. So if an average driver can do 20 fares per day, times 20 working days per month, then a "full time" uber employee drives 400 fares per month. Or figure it out on a per-mile basis - like the average fare is 4 miles (let's say) so the average driver does 1600 miles/mo.
Figure out the per-ride or per-mile fee and roll that into the fares. Done and done.
(frankly this is being generous - delivery drivers and waitresses are paid "per fare" too, and we still expect their employers to pay for their benefits.)
Really what needs to happen though is we implement government-provided universal healthcare and maybe a basic income, and then you can have all the wacky gig-economy payment schemes you want.
Uber/Lyft does not exist to help the economy or the people of the US, they exist to help themselves. Otherwise they would charge and pay a working wage.
Having been stranded far from home, both late night and in the early evening, I see Uber & Lyft as providing a valuable service.
Having been taken advantage of by taxi drivers on multiple occasions (I don't think I've ever actually had a good taxi experience) I don't want to go back to the way things were. Maybe other people like being defrauded by taxi drivers? Maybe people just forget how bad the taxi system is, and that at one point people were cheering the demise of the old taxi system for a reason.
I was privileged to a high speed race through Newark running red lights, not responding to my pleas to stop, charge meter was off the whole ride, then a huge argument over the cab fare that almost got the cops called on us once I thankfully arrived at the hotel.
I’ve never been in a cab since.
Uber and Lyft has always been pleasant for me.
[1] https://www.npr.org/2019/05/08/721139488/uber-and-lyft-cause...
[2] https://www.nytimes.com/2019/12/05/business/lyft-sexual-assa...
[3] https://www.huffingtonpost.ca/entry/uber-silences-women-sexu...
The idea that there is a gap in the market is something that people are looking for, on Hacker News most especially, and if this is a legitimate gap that Uber and Lyft are ignoring for silly reasons, then there should be a bunch of startups to take their place pretty quickly.
When an employee, you are legally the agent of the employer. Anything you agree to or do while employed is a liability of the employer, not you personally. That is why an employee at a VC firm can commit to provide capital, but doesn't have to pay it directly. Or why a manager of a company can take on debt, that is then the responsibility of the company, not himself.
You cannot be an agent of two companies at the same time. If you have both uber and lyft app running in your car, waiting for a passenger, and you get into a crash, if you are an employee working, then one of the companies is responsible for covering any damages you inflict. Of course, since you're not even on any particular 'job' at the time, who is responsible?
Moreover, you cannot have two companies paying you by the hour for the same hour.
Moreover, the law presumes that employees owe loyalty to their employer while working. So for example, if I am employed by a car dealership, but when a customer comes in during my shift, I decide to sell him my personal used car, instead of the companies, the company can actually sue me for failing to fulfill my duty of loyalty to them. You can't have someone working for both Uber and Lyft in this model. Since Uber and Lyft are competitors, by definition, you cannot be loyal to both. If you have both apps running and pick the best customer based on price, then you have shortchanged one of the companies, and open yourself up to liability. Contractors have no presumed assumption of loyalty to anyone but themselves. That is what allows them to pick the most profitable ride.
https://www.abacademies.org/articles/the-duty-of-loyalty-in-...
Uber has asked for California to come up with legal structures that provide benefits to employees while allowing their business model. This seems eminently reasonable: there are clear differences between Uber and Lyft drivers and traditional employees. It is the duty of government to innovate policy-wise so that the private sector can innovate business-wise. Unfortunately, California's legislature has failed to innovate anything and has instead decided to force innovators to use an outdated model of employment.
Please cite something to back this up.
> Moreover, you cannot have two companies paying you by the hour for the same hour.
Why not? Again, please cite a source.
If we assume that uber et al. have a baseline staffing level, during which time you as driver might be paid to be working for them exclusively, then sure, during that period of "dedicated time" you would only be working for the one service. But then in addition to that, uber might have on-call hours to accommodate surge. During this time, you as employee driver are free to accept or pass on rides. Like voluntary overtime, by the task (piece work). In your OT/on-call hours you can also be on-call for ride service #2, since they could have the same go/no-go optional work acceptance. So why couldn't you do this? And why couldn't uber/lyft employ people this way?
Your example of being a car salesman is a bad analogy for ride service. I am not "working" for the ride service until I accept the ride, which constitutes clocking in for an on-call task. Whereas being a car salesman that sells my personal car while on-duty with my employer is a different situation.
One can in fact work two separate jobs at the same time without it being fraud (the only real "legal" restriction on working two jobs). You can also have two companies pay "you by the hour for the same hour" depending on the circumstances. There isn't a bright line rule that states this or anything, it comes down to whether one is committing fraud (and I agree it could be fraud in many cases, especially if done in secret).
The agent thing falls into the same category, and would depend on fraud and conflict of interest (loyalty, as you mentioned). And you can in fact be an agent of multiple companies or organizations at the same time, but things can get tricky (think of a hypothetical person being the CEO of Twitter and Square at the same time for example).
Your car example is also off the mark, or could be, because it's not a bright line rule. Loyalty to a company in Corporate Law is largely predicated on responsibility to the company via position or duties you've undertaken, and many cases have swung either way, and these can be hard or nuanced questions. Some small facts could change the whole car example, for example perhaps you only sell large vans, but the customer only wants a small convertible. In this case it might be proper for the employee to sell the person their personal Miata. It also doesn't consider higher level employees, executives for instance, and corporate opportunity. RE: "you cannot have two companies paying you by the hour for the same hour", sure you can, depending on the circumstances. Contrived example, but imagine a night security guard being paid to sit at a desk from midnight to eight am whose only responsibility is to have their butt in the seat. It might be okay for them to also be paid for a few hours of handling an online help desk for a third party employer for a couple hours, both being paid by the hour. That person is being paid by the hour by two employers simultaneously and it's not fraud or a breach of loyalty, especially for a hypothetical lower level employee who has permission.
Point is, these are not always easy questions, there is a lot of grey area, and you're really painting the agent and duty of loyalty thing as very black and white concepts when they're definitely not.
For example, if you were employed by Lyft as a driver, then presumably you would be neglecting your job duties if you refused to pick up a customer on the grounds that you happen to be driving a Uber customer at the time.
The only way this industry can operate is if all of the drivers have to be searching for rides on all of the networks?
What employer would allow that?
Of course an employee can work at KFC and McD simultaneously if they can make arrangements to not have shift conflicts, and likewise one could hypothetically be a Uber employee in the morning and a Lyft employee at night, but why go through the trouble of working effectively full time but only getting redundant part timer benefit packages?
Of course the next step is to stop operating.
1 https://www.dir.ca.gov/dlse/FAQ_ReportingTimePay.htm
2 https://blog.accuchex.com/california-labor-laws-minimum-work...
Worse, the financially better off using the paid services allowed the public services to become more responsive to the poorer members of this demographic. So now everybody will suffer.
Edit: This was one of the main reasons against using Uber. Cabs were, I believe, legally required to provide this service, and Uber wasn't. That may have changed, but cabs were subject to that regulation, at least in Oregon, and Uber wasn't. Uber may have filled that gap, but I'm sure it was for financial benefit to them and not because it was the right thing to do.
Unfortunately, the cab companies had accumulated years of bad will from tolerating bad and abusive drivers and then ran strikes in the city where drivers attacked people and deliberately blocked an ambulance.
I don’t like any of the sides in this battle.
Also my grandparents in a city always used a cab service that only serves wheelchair and has trained drivers to load and unload.
The ones affluent enough to afford it used private drivers.
A few years ago I was in a freak accident and ended up in a wheel chair for about 3 months. It's really hard to put into words how much more effort and hassle it is to get around that way, even when most of the people around you are willing to help. And I was relatively lucky, still having full use of my arms and no other health issues. But a decent rule of thumb is to take however long you think some activity should require and multiply that by three, at minimum.
A disabled friend of mine has often spent quite literally all day dealing with disabled transit issues to get across town for a single appointment someplace. We help him out when we can, but like most people he hates feeling beholden to the charity of friends.
Everybody deserves to be able to go where they want within their community when they want to. And we should provide these without relying on private companies with questionable labor practices.
People with limited mobility deserve the same freedom of movement as fully abled people, however that cannot come at the cost of the workers who provide it. We should be asking for both adequate transportation and fully compensated and decently paid workers.
[1]: https://www.itdp.org/2019/05/23/high-cost-transportation-uni...
Our transportation system is entirely based on individual travel, and yet we cannot keep cases under control.
Besides, this situation is not permanent. We should not live in complete isolation out of fear for the next pandemic. Instead, we should learn from our mistakes this time around, and agree on an appropriate course of action to protect against future contagions.
Even when the pandemic is over, I might end up driving more often than before. It's so nice to know that I can just stay somewhere until I want to leave, to know that I can go wherever I want at whatever time, without having to worry about coordinating it with anyone else. Profoundly enabling, even as it is sickeningly individualist.
But that is besides the point, what you personally feel doesn’t really matter. Your previous comment is still incredibly dishonest. Functioning frequent and convenient mass transit system is enabling for far more people then personal transports. Even during a pandemic there are ways to mitigate the risk of spreading the virus. And even if not, a pandemic is a temporary situation, and after it is over the infrastructure is still there to enable much more people to transport them self, in varying physical conditions, without sacrificing the working conditions and benefits of the transportation workers.
If I say what I believe, it's not dishonest. It might be _wrong_, but it's not a lie.
> Public Transportation... if future pandemics pose a danger, what can we do to implement transport options that will be safe during future pandemics? How can we better design our cities to make individual transport by bike/foot more possible, rather than by car? etc etc. Let's listen to urban planners and public policy experts.
> Election Security... if voter fraud is an issue, what security measures can we take to ensure that every citizen can safely and securely exercise their right to vote? Let's listen to cryptographers.
> Wealth Inequality... how can we ensure that all children have a safe and nurturing home environment, along with the opportunities for school and work that they need to achieve upward social mobility? Let's listen to educators and economists.
> Healthcare... how can we reform hospitals and private/public insurance to provide both urgent and preventative medical care at a fair price? Let's listen to medical health professionals and economists.
There are many possible answers to these questions. I would love love love to debate actual solutions. But it's hard to even agree there is a problem! Often, the reason is that national+local news networks are all fed their talking points by wealthy individuals who personally profit from a broken system.
No-one has mentioned transpiration until now. This is a lie by changing the subject completely.
UK here. We contained it by mostly stopping using public transport. The efficiency case for public transport (in its current form) is inversely correlated with social distancing.
I think though that California has an extreme case of NIMBY-ism which makes much needed projects like these so much harder then then should be. I’m sure similar projects in Texas between Houston and Dallas would be far easier to complete on schedule. Similar with the Cascadian corridor between Portland OR, and Vancouver BC. Although I see the Pacific North Western politicians capitalizing on this project for a few decades to win a few more election before this projects gets a go-ahead.
So you are wrong—as California is proofing—unregulated gig-capitalism is not a system that can provide fair working conditions and cheap accessible transportation at the same time.
We're not, however, so you have quite the circular argument going on here. By any reasonable definition, I am not compelled to work -- despite laboring in order to myself and my family fed and housed. Power struggles are a poor lens for understanding this dynamic.
I don’t understand how my argument is circular. If you strip away any ways for a person to provide for them self except selling their own labor, you are basically saying to them: “work or perish!” Technically perishing is an option, but it is not an option most people will consider (including my self; and demonstrably Uber drivers).
That's true, given the predicate. I don't know why it would be relevant, since -- just like with your comment -- nobody has conceded this definition of morality. The conver preceding is not obviously rooted in Marxist class struggle, so I'm not sure why you're framing it thus (whether you use the words or not.)
Your argument depends on everyone agreeing that, unless a person's basic need for house and food are totally met first, anything they do in pursuit of those needs is compelled and not voluntary. This is not an agreed upon predicate.
And if I did want to explain things in those terms, I should first explain why that's a valuable frame to adopt.
Yeah, sounds like a market ripe for picking.
I wish Uber and Lyft had focused on sustainability vs monopoly and not foisted so much of their costs off onto their drivers, but here we are.
Unfortunately it's difficult to participate in a lot of our society unless you can drive.
If not, and lawyers agree there is no case (yet), then there is an obvious gap in the ADA regulation, and it should be fixed. Everyone has equal rights to get around their community, and it is massively unfair if a significant number of people are left behind because of their disabilities.
Unsurprisingly, Uber and Lyft have also been violating the ADA for pretty much their entire existence, arguing that they don’t have to comply and settling with states and cities when they lose cases:
https://www.fastcompany.com/90343921/lyft-claims-its-not-a-t...
Why then, go through the effort? Because they should be integrated into society like all others. I firmly believe public transportation has benefits beyond efficiency.
Something about a billionaire on the 6 train next to a restaurant worker and a wheelchair-bound piano tuner[1] strikes me as poetic and noble. Whatever the costs.
[1] Headed to my place.
i know cost is just a number to you but that’s other people’s money you’re spending
Moreover, public transportation costs in the US are outrageous. Each elevator in the tens of millions for an NYC subway station. It's a racket and unacceptably corrupt.
But we can tackle both problems, and should.
Even with hyper efficient spending, there's an external benefit that is hard to measure and value beyond the cold, hard cash needed for the infrastructure vs government-paid private rides.
I've been laterally involved in frivolous ADA lawsuits for websites before, so I also understand how even noble goals can become corrupted.
I mean, if numbers are all that matter, I’m fairly sure someone could come up with a model to deprioritise and disenfranchise almost anyone - the disabled, the elderly, the retired...
My uncle lives in a wheelchair by the way. The horror of imagining him having to use the subway...
So yes, I’d like to give disabled users the option of using all public transport, if they choose. (Having lived in London, many underground stations are actually pretty good - and certainly not below ‘human decency’.)
But I’d also like that disabled people have other options, including reasonably-priced taxis.
If it were both cheaper and best for the users (as I believe it would be) to pay for private rides, I would support that wholeheartedly. If one option were cheaper, and the other is preferred, it would seem that you'd have to engage in some type of cost-benefit analysis.
I don't see why able-bodied people should impose their view of 'social integration' on minorities at great cost, without additional justification.
But I think taken to the extreme: who wouldn't prefer a private air-conditioned taxi over 100 ˚F subway platforms?
In this hypothetical: we're assuming the facilities are good enough that the experience for the disabled is within reasonable parity.
On the other hand, if it means having to go 40 blocks uptown, just to find an elevator then head back downtown, the system is inadequate and my narrative doesn't hold.
Don't get me wrong; I'd love for everyone to be able to do everything, but trying to make everything work for everyone all the time can get Procrustean.
If we're serious about modernizing and reducing our carbon footprint, we should provide reliable, safe, comfortable transportation that people want to take. Not relegate it as a public service for the needy. (though the both can work together)
I think the 'solution' is to replace buses with smaller and more efficient urban mobility solutions; buses are not that efficient (as they spend most of their time driving around almost empty), so this is the lowest-hanging fruit anyway. If I knew how to create these solutions, I would be working on them right now, but I think some combination(s) of car-sharing, high efficiency vehicles, self-driving technologies, and electric bicycles will eventually replace buses.
Rail I think is obviously preferred long term, but setting up a fleet of electric buses could be done in a matter of months, vs a simple limited rail that takes many years.
However, I've taken some really, really bad buses (SF), some middle-of-the-road buses (Seattle), and some rather good buses (Vancouver).
If you want to improve bus efficiency, the lowest-hanging fruit is switching the less-used lines to 24-person shuttle-buses. Vancouver uses that model heavily.
The next lowest-hanging fruit would be actually getting people to use the bus. If the reason they don't use the bus is 'it doesn't take me where I need to go', you can fix that. If the reason they don't use the bus is 'only crazies and poor people take the bus', you can fix that too. Transit systems that are used by everyone, as opposed to just 'undesirables' tend to run a lot better.
Also, keep in mind that most cars on the road are $20-50,000 vehicles that drive 75% empty, and spend 95% of their lives sitting in parking lots. That's a damn low bar for 'efficiency' that even a mostly-empty bus can match. Likewise, taxis are vehicles that spend ~30% of their time driving empty, and only transporting 1 person the vast majority of the remaining time. (While costing ~$30/hour to operate.)
When it's prohibitively expensive to take private air-conditioned taxi.
If taxi is, as you said, both cheaper and provides a better experience, why not? Are we torturing people just for your poetic justice?
So let's ask this imaginary person: Would you rather get free rides everywhere you need to go, or have to wait in the rain/snow/heat for the bus, feeling the stress of inconveniencing others with the ramp, and having to wheel yourself the rest of the distance to your destination?
That's if the bus arrives on time, which it won't. But keep in mind! silviogutierrez will feel better about themself if you take the bus! "poetic and noble" were the exact words.
At least in Toronto, the para-transit fares are the same as the regular transit system fares.
Sometimes they send you a taxi, but other times they send around a mini-bus that operates like an UberPool and may not save you any time.
Even if a Lyft/Uber would be cheaper, if the gov is subsidizing it, they’ll pay for the lowest priority to save 3 cents.
See my other comment. In this ideal, the experience for the wheelchair-bound is comparable to others. Not the current embarrassment we have in New York, for example.
The thing is, there are a few reasons why the able-bodied tend to prefer the experience of a ride-hailing app over public transit.
- it comes to where you are, and drops you off exactly where you're going
- you get a ride when you're ready to go, and not whenever the transit is running
- higher chances of getting rides at weird hours
- no risk of interacting with aggressive panhandlers, people high on drugs, the mentally ill, or people with bad personal hygiene
Public transit has significant advantages, as well: biggest among them, it avoids the tragedy of the commons, particularly road congestion and carbon emissions. It has salubrious effects on urban planning. Places with good public transit are nice places to live.
What I want to point out is that, every one of the advantages for the able-bodied are significantly exaggerated for wheelchair users.
I don't think it's possible to offer a comparable experience, due to the very nature of the disability. So if it's more expensive to offer the less desirable option, well, we shouldn't do that.
More expensive public transit means picking from the following buckets: less transit, more expensive tickets, less pay for workers, starving other municipal programs, or kicking the problem down the road with municipal debt. None of those are great; they can be worth it for a better experience (replacing old worn-down cars for example), but not for a worse one.
1. Accessibility doesn't just benefit wheel-chair bound people. Accessibility benefits just about anyone who has temporary difficulty walking, is carrying heavy or bulky things, is out with children, is not fully sober, etc, etc, etc.
2. NYC may indeed be a special case, because of the poor design of existing subway stations, and the difficulty of rebuilding them in the middle of Manhattan. I don't think this sort of thing would generalize to other locales.
#2: Normally I would strongly disagree. It's a NYC trope to say our subway is in shambles because pick one of: the city is old, the city is dense, the subway runs 24/7, and so on. And yet Paris, London, and other ancient subways run better and make cheaper and faster improvements.
But looking around, it seems like accessibility is very poor for London and Paris too. So you're right. They all have this in common. In fact, NYC may even be ahead[1]
However, going on a real tangent here, with the crazy amounts of money we spend or even with quantitative easing[2], I feel like we could try novel concepts like shutting down entire city blocks for months at a time and compensate everyone involved. Yes, crazy prices, but who knows?
[1] https://www.citymetric.com/transport/what-paris-metro-map-lo...
[2] Instead of propping up bonds and equities, prop up infrastructure?
Also, accessible transit benefits everyone with a stroller, as well as the elderly and anyone else with a temporary injury.
Cost would be basically the same as normal bus ride.
The municipalities could, you know, fund transit?
In the Valley, I was talking to some interns. It was a 50 minute walk, 40 minute bus ride, and 15 minute bike ride. Basically the only reason why you'd take the bus is you can't afford a bike?!?
IMO, if the California Republican party was smart they would make this a wedge issue in the next election. "Elect us, and we'll make it possible to use Uber again."
You mean, overcrowding a market with underpaid positions, sold with lies and marketing to make them sound better than they are, to force people with full time jobs out of work so that people could get a ride in a vehicle with no safety, security, (or originally) background verification while doing all they could to cheat regulations, driver and user privacy, tax laws, climate change, and eventually, now, rent-seek, to boost stock prices to pad Vegas parties and investor portfolios.
Modern ride sharing is not sustainable, environmentally friendly, or a 'job' and this doesn't exempt the bad behaviors by taxi companies, but understand this is the end destination of capitalism invading a regulated economy.
https://en.wikipedia.org/wiki/Gregory_v._Helvering
Government doesn't exist to collect taxes. They are there to provide governance. Taxes are a necessary evil that should be kept to a minimum to provide the service of governance.
If someone can come up with a legal operational structure that gets around taxes then that the government didn't do its job.
It's only easy to get around taxes when the taxes aren't closely tied to the service the government is providing. i.e. when you taxing one individual or business for a service provided to other individuals or businesses.
Right, they passed a law, AB5, to better do that job.
"To dodge the shareholders' taxes is not one of the transactions contemplated as corporate "reorganizations."
And from the SC ruling:
"The whole undertaking, though conducted according to the terms of [the statute], was in fact an elaborate and devious form of conveyance masquerading as a corporate reorganization, and nothing else. ... [T]he transaction upon its face lies outside the plain intent of the statute. To hold otherwise would be to exalt artifice above reality and to deprive the statutory provision in question of all serious purpose."
If there's no business purpose beyond tax avoidance, the government can indeed hold you to the higher tax rate. I don't think that's what happened here, i think there are legitimate non-tax reasons for Uber/Lyft's structure, but it's not a completely unreasonable take to disagree with that.
And even if not, the government is free to change the law to fix things, which it did.
Have they tried it to confirm it 'doesn't work'? Maybe rideshare companies need to reduce their cut, and start putting more of that money into the driver's pocket. Doesn't mean it can't be a profitable business, though possibly low-margin. Have they tried paring back development costs, marketing costs, etc?
In the meantime, they'll operate at a loss. If they leave the California market, they'll simple lose money slower.
The former tends to adapt okay to predictable demand, the latter tends to not at all.
Before Lyft and Uber, my usual wait time for a Taxis in the Seattle area was on the order of 45 minutes to an hour. Since the rideshare companies became common, the wait time for taxis has gone down, but its still longer than the wait for Lyft.
If prices were to go up, sure, Lyft would have less business, but presumably there is some price point that pays drivers enough and also makes the economics work for Lyft.
Yes it does matter in the debate.
Because when we are passing laws, we should care about both the pros and the cons of a particular policy.
You can feel free to say that the pros outweight the cons for these laws, but you still need to recognize that shutting down ride sharing is a con of these laws.
Those are the drawbacks of these laws, and it is OK for people to care about these drawbacks, and bring them up into the debate.
There are peculiarities to Lyft and Uber’s business model, being on demand is not one.
Your definition of on-demand is more like a bus or train, not lyft or uber. i.e. you have to actually go to a bus stop or train stop, which could be out of the way, and you have to deal with their schedule. That's hardly on-demand.
Uber and lyft's business model is absolutely based on being on-demand. I would take a bus or train if it was even close to as convenient.
[0]: https://en.wikipedia.org/wiki/Dynamex_Operations_West,_Inc._...
This is like saying that raising the minimum wage will drive McDonald's out of business. At the current prices, sure, but McDonald's will raise prices 10% to compensate (wages are not 100% of the cost of a burger) and keep on trucking.
Seems to happen quite a bit in monoideological areas.
This is a transparent ploy by Lyft and Uber to try and extort the state into changing the law by holding their drivers' livelihoods ransom.
When did California eliminate private property? When did it hand over the means of production to the proletariat?
Last I checked, capitalism was alive and well in California, which is the dearly beloved home of the most successful capitalist entities and richest people on the planet.
If California's policies really were far left, all those companies would be owned and run by their workers, and no one would be richer than anyone else.
But that's not California, is it?
https://montreal.ctvnews.ca/uber-is-officially-allowed-in-qu...
I wouldn't describe what happened in Quebec as a loss for Uber.
This would devastate them. Absolutely heartless move on behalf of the California government. Don’t kick the little guys while they’re down to make some political point. It’s not the time.
The road to hell...
There is a tendency to classify failed left-leaning policies as 'well-intentioned but failures' and right-leaning policies as 'heartless and also failures'. This is a ridiculous dichotomy.
The fact is that everyone knew this was going to happen. It was indeed a heartless policy. The leftist lawmakers that run california could have asked anyone and could have at least feigned interest in helping Uber and Lyft succeed in their state. Instead, they chose to essentially ban their business model with no input from the companies. It is especially egregious because the state has spent the last 50 years building an incredibly car-dependent society, and has failed in its duty to bring any kind of workable public transportation system. Uber and Lyft started to become their finally workable transit system, and the state can't even have that.
I'm done pretending that leftist policies are well-intentioned. We need to start calling them what they are -- evil.
"That those who know what's best for us Must rise and save us from ourselves"
It was on a playlist I was listening to last week walking my dog. Seems quite apropos here.
The companies already stated that hypothetically, they would hire drivers and raise prices if it came down to having to use an employee model in California, but the case they're making is that while that scenario won't be a fatal blow to them, it'll severely suck for riders and drivers.
(I'm not convinced that's actually the case, though, but I don't know the math around this, so it could be.)
I feel like a shutdown would certainly bring it to the top of mind for people and help convert the undecided, but it already looks like it'll pass, shutdown or not.
[1] https://redfieldandwiltonstrategies.com/california-propositi...
Life goes on though, probably the Taxi industry is very pleased, many of the full-time drivers will go on to work as Taxi drivers, licensed with hours and all. And I'll just lower my expectations for getting a taxi dispatched within 30 mins outside of the main city.
So no, it was made illegal a year ago. It was Uber and Lyfts decision to do nothing to prepare.
Their business model has been illegal since at least the 2018 Dynamex decision. The only sudden moves here are from Lyft.
"Oh, but Uber and Lyft were brought down by their own greed" Well, where is the non-greedy alternative in this market, employing legitimate full-benefit workers and serving their community while making earnest profits? If there really exists a market that is sustainable via the terms outlined by the court of California, why the hell isn't anyone competing in this market that famously yields no incumbent benefits?
If, on the other hand, if the math doesn't check out and there isn't a viable market, then what is being accomplished by this ruling? It's both shutting down an extremely useful service while taking jobs away from people who need it most, when they need it most.
This is a terrible decision that is so far removed from reality that it's almost laughable. While I admire the idealistic worldview of those who rule from above, this is a classic case of the road to hell being paved by good intentions.
Unions want to have fewer (unionized) people employed at higher compensation. Gig workers go against that because there is higher employment at lower compensation.
I hope nowhere.
As someone else mentioned Uber and Lyft impose restrictions on these workers that a typical contractor would not have. The litmus test isn’t simply whether you can set your number of hours.
Millions of employees in the US have flexible schedules and work part-time.
Man I could tell some stories about that.
No one is saying taxi services are fine as-is, in addition to rideshare ride being artificially cheap thanks to VC money subsidizing costs, they did offer real user experience improvements. But the rideshare services have also shirked a lot of duties and created new externalized costs for others to bear.
The corrected version of this is "they will drive to your location some time within the next 24 hours, pick you up if you want to go to the places they want to go, and maybe accept payment in credit card".
Go on. Ask a brown person who lives by Lake Merced what it's like to try to get a taxi there from downtown.
Also, to be clear, I don't have a problem with this. I think you should have a right to transport whomsoever you desire if you can reach a consensual agreement.
But I don't think it's consensual if you ban the alternative.
Called out! But you're right, I should have been more specific.
I think it was covered well below: They are never around and have a low chance of coming if you call one, even if they say they are on the way.
https://www.sfmta.com/sites/default/files/Draft%20ManagingTa...
We also have some strict laws like a taxi must produce a receipt if you request one etc
I have, in fact, used Taxis in California. Is it easier to use Uber or Lyft? Yes. Is there absolutely no alternative as the commenter above suggests? No.
We can have a conversation around why the Taxi system sucks, if you'd like.
Which is it?
The former is a definite harm to consumers. The latter is a possibility of loss for investors.
Taxis still exist.
Given the history of Uber and Lyft drivers denying access to riders with wheelchairs, decrying the loss of their services seems weird.
Taxis have not gotten better since then.
So yeah, what parent was talking about doesn't exist.
I think the mistake that Uber and Lyft are making here is just not charging market rates that will let their drivers make a good living. If it turns out that costs 50% more than a taxi - fine. People then have a choice of Public Transit, Taxis, or Uber/Lyft. Their race to the bottom and attempt to price each other out of the market is what led us here.
Where they erred originally is trying to build a business model that didn't provide a good living to their key employees - and lets face it, Uber/Lyft drivers are employees.
Aren't the rates basically set by the drivers? I've never driven for Uber or Lyft but my impression was that drivers have a choice of whether to accept each request or not. If the offered price for a ride is "too low" (but someone still accepts it) that just highlights the fact that your idea of "too low" is not the only one that matters. Maybe your competition isn't relying on this for a living. Maybe they've found other ways to reduce their costs. Either way, I don't really see a problem aside from certain parties' unrealistically high expectations.
Personally I feel a bit sorry for all of the people that deliberately chose to take on these gig jobs as freelancers who are now being pressured into becoming employees to salve the overactive consciences of people who aren't even involved. Not everyone wants to be classified as an employee, with all the restrictions that entails.
I don't think I understand this. Why not? Seems like more options besides a traditional 9-5 is a good thing.
What should happen is there should be a UBI in place. Many people would stop being a ride sharing drivers and the people who want to be a driver for extra cash will be paid fairly because only the people who WANT to do it will do it, not the people who NEED to do it. Lyft and Uber and benefiting from how many people are in the second category. Its not Lyft's and Uber's job to fix societies inequities, but they shouldn't be allowed to exist solely on those people's backs.
2. There are many jobs available that don't allow the lifestyle freedoms of gig work (see the trucking industry, which as it turns out also has a long reputation for unfairly treating employees).
In my opinion, the US continues to punish employers, employees, and contractors by tying employment to healthcare. It's much easier to say: "Look at that company screwing their workers out of benefits!", than it is to say: "Look at our country screwing our citizens out of benefits!".
If we get universal healthcare, then yeah this problem goes away. But california can't bank on that existing because even Biden during a pandemic isn't committing to single payer healthcare if he's elected. What is California supposed to do? We need standards, its probably not fiscally feasible for California to provide healthcare or UBI for all, therefore this is the best option it has to prevent workers from being abused.
Well, no. Prop 22 would force companies to provide benefits, and the rideshare companies themselves are behind it. What was actually chosen was to just put drivers out of work altogether until November at the earliest, because the government deemed that the current compromise was not good enough.
Even if you disagree with the law, Uber/Lyft knew it was coming - they've known for a long time now. Instead of getting ready for it, they chose to spend their time filing lawsuits (which were never going to succeed) and preparing for a ballot initiative. So let's not argue that the law itself "put drivers out of work altogether." - Uber and Lyft did that.
Sure, but the law is supposed to be in service of the people, otherwise it's no different from a dictatorship. The fact than some 100k drivers are in the prop 22 coalition alone should say something about what _they_ want.
> I'm sure Uber/Lyft could have spent some of the $100 million
How sure? More sure than the companies actually doing the due diligence of crunching those numbers to make such a large decision? $100M may seem like a lot of money, but consider that this was a one time spend, vs the ongoing cost of things like an HR org, etc
> that would have been the thing to do
TFA says they would only realistically be able to hire a fraction of current drivers (and the drivers themselves generally prefer to be contractors), and service reliability for riders would plummet to boot.
One could put it in different ways: if a driver wants to be an employee, then why not seek employment at a taxi/transportation company that works under that model? (amazon is hiring, for example) Why not put a taxi sign on a car and go line up at the airport with a zoned price model as a sole proprietorship company? As a software developer, I have the equivalent of all these options available to me. It would be inconceivable to enter a software development contract agreement with a company and then turn around and say they are now obligated by law to hire me.
If California's jobs suck, move. Yes, it's hard but it beats the alternative of destroying more jobs through misguided regulations.
There's a huge difference between 'People should not be forced to' vs. 'people should not be'. I think your case is the latter.
There was a cheaper alternative for companies to provide up until now, so I don't think the current lack of this type of service proves that it couldn't exist. Companies will tend to provide the service that costs them the least in the absence of other incentives; that's why labor laws exist in the first place. The fact that child labor and unsafe working conditions used to be the norm wasn't due to it being impossible to make a profit without them, but due to companies having no incentive to get rid of them.
The parent post (from Lyft) looks hilarious in hindsight.
Edit: Added context
I have edited the parent to make this easier to understand.
I'm sure uber and lyft drivers are also extremely upset by this, since they are only being exploited because they are vulnerable.
The fact that these drivers cannot survive without being exploited and that your sister can't be mobile with out their exploitation is not a problem with CA law makers.
Its beyond insane that so many people on HN will jump through such tremendous intellectual hoops to justify the world that they exist and temporarily thrive in. These companies might make your live easier today, but the distance from where you are to feeling that exploitation is not as far as you think.
TL;DR it's easy to flip out because Uber and Lyft are big names, but there are plenty of other good services, just use those instead.
[1] https://communityimpact.com/austin/central-austin/impacts/20....
With the new requirements in place (e.g. actually hiring employees and providing benefits) the barrier to entry here is waaaaay higher than before. I would argue Ride Austin would have never even started (especially as a non profit) if these requirements were in place the last time Uber/Lyft shut down in Austin.
There's no objective "better" here. Some drivers may have done better with higher fares being passed onto them. On the other hand, 59% of Lyft/Uber riders ceased to use ride-hailing services.
There CSAT wasn't that great either; ride volume of competitors dropped significantly (Ride Austin lost 55% of riders within a week of Uber and Lyft returning).
The fundamental problem we have here is that pricing is being set by a heavily competitive market-place -- the clearance wage however is below what many see as a living wage. The most just thing to do may be to introduce a pricing floor (raise fares and raise driver income/benefits), but it's important to be honest about the trade-offs.
The apps were extremely buggy for both drivers and passengers causing missed rides, multiple drivers showing up to the same rider, etc. Fasten paid the best, but it still would only be marginally better if not the exact same as I was making with Uber or Lyft.
As far as what happened in Austin, there were absolutely no good replacements and us drivers (at least the ones I talked to) were very happy when they returned.
> Superior Court Judge Ethan Schulman ruled Monday [August 10, 2020] that Lyft and Uber's thousands of contract drivers should be given the same protections and benefits under labor law as other employees of the ride-hailing companies.
> The judge said Uber and Lyft have refused to comply with a California law passed last year that was supposed to make it harder for companies in the state to hire workers as contractors, so gig economy workers such as drivers for the ride-hailing companies would receive health insurance, workers' compensation and paid sick and family leave. As independent contractors, Uber and Lyft drivers are not provided these benefits.
https://www.npr.org/2020/08/10/901099643/california-judge-or...
This law is impacting people outside of Uber and Lyft but those two are highlighted because it thwarted the lock down many municipalities had over cab companies and they did not want to give up the side benefits of that cash into their political coffers.
Then throw in that Uber and Lyft were truly effective alternatives to unionized mass transit lines operated in many cities and you can see the entirety of the political graft that was being upended. If you want more you just jump into that this is part of undoing decades of jobs bounded up in occupational licensing which only serves to protect vested interest who again are quick to maintain their political donations.
If they were out to protect workers they had many more ways to do it.
[0]https://www.sfchronicle.com/business/article/California-s-gi...
No they weren't. It's called "mass transit" for a reason - replacing trains and buses with masses of individuals riding in separate cars is not an effective alternative. While Uber and Lyft are more convenient for certain trips, mass transit still has a place due to capacity constraints.
> If they were out to protect workers they had many more ways to do it.
Such as what? Strengthening collective bargaining rights? Oh wait, you don't like unions either.
"We’ve spent hundreds of hours meeting with policymakers and labor leaders to craft an alternative proposal for drivers that includes a minimum earnings guarantee, mileage reimbursement, a health care subsidy, and occupational accident insurance, without the negative consequences."
That's what's so disingenuous about this campaign by Uber and Lyft. They're pretending that being an employee would take away all of this flexibility, but the reality is the legislation left that flexibility in place. This is entirely an argument about benefits and protections, but Lyft and Uber are trying to pretend otherwise.
The issue is that they're still considered employees which means predetermined shifts and control rather than fluid supply meeting demand by the minute. This changes the service (which matters more than the price for customers) so that it no longer works at the current scale.
Is there anything in California labour law or AB5 that requires predetermined shifts? What would prevent Uber/Lyft from allowing its now-employees to volunteer for an X-hour shift at any point that demand forecasts suggest it would be useful?
What do you call it when Uber tells an employee where, when and how long to work?
The very idea that health benefits are tied to employment is the real problem. In Canada they aren’t and thus it’s far more reasonable to work as a ride share driver here. If we could go even further and add pharmacare, dental, and even basic income to the services provided by the government, then we could get rid of minimum wage laws as well. When people are truly free to walk away from any job, then the market will decide the appropriate wage. Any job offering truly unacceptable wages at that point becomes a ripe target for automation.
The earnings weren’t great, but it was very helpful as an extra. I had a fuel efficient car and kept track of all my expenses for deductions and made above minimum wage.
I’ve met plenty of lovely and fascinating people and had great, enjoyable conversations. I barely had any issues with riders.
This extra income helped me buy more stocks and make just a little bit more progress towards my financial goals. These stocks are still compounding away.
I’m a bit sad that this opportunity is now taken away from Californians.
Why? I’m a consultant - and this is what I do for a living. Why isn’t freelance work respectable or acceptable in your view?
As to your first question, I've never met a consultant that enjoys all the benefits of the full-time employees at the companies they consult for. The term "consultant" sets the expectation that one would not enjoy those benefits during their work there.
You used the word should - should get a full time job. Based on what you say, you don’t think freelance work is acceptable. If you considered it acceptable then you wouldn’t be admonishing people, telling them what they should do.
I've never met
You’re just full of assumptions. I get paid crazy-well - much higher than the salaried employees I work with, and unlike them I can bill off-hours. I don’t have a company retirement plan but that’s cheap with the excess I get paid over salary. And I write my own vacations.
The term "consultant" sets the expectation that one would not enjoy those benefits during their work there.
No, it sets the expectation that I’m consulting. That’s all.
The bummer is, as usual, the policy makers aren't seeing the nuance between the two and now drivers have to suffer the consequences and lost wages until the dust settles. Either the politicians are ignorant, or they're willfully ignoring the facts. Honestly neither would surprise me, it is CA after all :)
Unfortunately many gig workers don't have the privilege. I'm assuming here but you probably had another job and benefits. There are many workers who don't, and are turning to Uber or Lyft just to put food on the table and are being forced into working without paid vacation, sick leave, or benefits simply because they have no other options.
I think corporations taking advantages of the imbalances is a race to the bottom. I believe we should find a 21st century approach to fixing these imbalances so that we don't take opportunities like yours away, but also work to protect labor rights/power that has been much eroded in the last decades.
That is such a lazy take. Of course people are forced to take whatever job is available: humans need food, shelter and healthcare. If society doesn't collectively agree about a minimum standard of what a job entails, you inevitably ends up with the "bottom of the barrel" living in inhumane conditions. As a society, it is our duty to lift up the standards, not lower them and trample on the already destitute.
Why convert many existing opportunities into fewer worse jobs? What's that solve exactly? Do you think there should be no independent contractors? Do you also object to freelancer writers or artists?
I expect that the number of full-time driving opportunities available would cover maybe a single-digit percentage of (pre-covid) Lyft/Uber drivers.
Which jobs? The ones that got slaughtered when Uber&co undercutted the whole market because they did not have to provide their workers with the basic standards that their competitors have to (i.e insurance, benefits, min. wage)?
> Is it because flexibility is paramount and they might already have other commitments?
How is that related? Flexibility doesn't mean having no rights. You can absolutely have a flexible schedule as an employee.
> Why convert many existing opportunities into fewer worse jobs? What you call opportunity, I call exploitation in the current way Uber&co run their businesses.
> Do you think there should be no independent contractors? Do you also object to freelancer writers or artists?
How is that related? The relationship and power balance between Uber and their drivers is not even close to "two independant parties", and the courts of California and many other countries around the world agree with me. There is nothing "freelance" about being an Uber driver.
What rights are missing? Be specific.
What's lacking in the power balance? How is different than any other contractor position? Is it a problem if contract writers are told what to write? Is it a problem if contract tech support are told to deal with customers? Why or why not?
Gig work turning into full time work out of necessity is the band-aid on the bullet wound. The unemployment numbers were down, in large part due to gig work, but that work never should've been counted as real employment.
So rather than address the underlying problem with something like the New Deal's Works Progress Administration, which was the real and necessary answer, we papered things over with gig work out of a deep-seated philosophical hatred of government as a primary employer.
Now, rather than admit gig work was never a real solution for employment, we're trying to force it to be that by fiat, and acting shocked when this wrongheaded strategy isn't working.
But again, "if".
I remember one local road being resurfaced during the 2008 stimulus that was perfectly fine before. It was just an easy road for them to shut down.
The reverse-lever for economic stimulus is tax cuts.
If the gov’t decides to fund a bunch of infrastructure projects, I don’t see a mad rush of people deciding to make a career in the trades.
Lots of folks don't consider the trades "prestigious" enough.
Right now, society is taking advantage of people who have to sacrifice their bodies because they have no other options. If the supply of people having to sacrifice their bodies drops, then the price point has to rise to compensate for that.
It's more than just money.
Money is the tool used to incentivize people to do things.
If you have a WPA, it'll look like this:
* Funding for existing construction companies
* Higher pay for construction workers
* Roughly the same employment
You've got to remember that high employment is not a union goal. If they can get five $250k construction workers over fifteen $80k construction workers, they'll do it. That's not a criticism. It's a transparent aim that unions fight for their members. That's what makes them worthwhile.
Until you don't. Just ask the air traffic controllers' union.
I don't mean this to say I'm anti-union, but just there are net-good and net-bad employers, there are net-good and net-bad unions. For things to get better at the national level everyone is going to have to sacrifice.
"Everyone has to make a sacrifice" doesn't mean anything when you can't make them.
I don't think it will happen, but my point is that it can if they overplay their hand.
The gig economy did not start with Uber or AirBnB.
Now we have two possibilities:
a) We could fight against it and try to get it revoked. Go back to the status quo where those workers keep working—potentially underpaid—without getting any of the benefits full-time workers rely on.
b) We could ask for a new proposal that would give gig workers these benefits and guarantee them a minimum wage.
Those jobs are shittier (that's why people drive instead of doing them) but they will still exist.
So they are refusing to hire workers because they are not allowed to misuse contractors to circumvent giving fair wages and benefits?
I don't know what your experience is with contractors (I use Upwork - which is an awesome platform - extensively) but that's not it. The savings come from the fact that you don't need 100% of their time, you don't need to recruit, and you can slide easily along the performance vs. price on the scale.
One is when you want an expert: for instance, we don't retain in-house counsel. We don't need it 100% of the time, but for the short periods we need it, we need the 99th percentile guy. And we can't afford the 99th percentile guy 100% of the time.
And then it's when you want drudge work but it's spiky: like you need things labelled or whatever. Upwork is like AWS for people and it's really, really good for all the reasons AWS is good.
If I suddenly have to work out payroll and benefits and all that shit, that's instantly non-viable. It's all right, the world is a big place, and things I can contract out I can just as well contract out outside of California and eventually outside the US. 90% of the time I'm doing Anglophone-adjacent nations anyway. Americans are too expensive for this work and they're equivalent performance anyway.
And for the stuff like law? Well, there I'll go with the 99th percentile guy. I know he's powerful enough to get his carve-out (as he has).
> Upwork sent around a "Don't worry about AB5" email but I'm not taking chances. Just ended everything with Cali contractors.
These drivers who can't put food on the table without Uber(which I've personally never met) in Califoria seem in a far worse position now.
No one is forcing them to do anything. They not only get to decide if they want to work, but how much, and when.
And every time these laws are passed most Uber and Lyft drivers always seem far more worried they will lose their income source than they are excited they might get benefits.
And almost all of my Uber and Lyft drivers had another source of income, were retired, were raising children, or had a medical condition that kept them from holding down a full time job.
No they don't.. Their material conditions dictate how much they need to work to meet their basic needs (food, utilities, rent).
You're assuming that people who are living paycheck to paycheck, who are backed against a wall, have the option to pick and choose if, when, and how much they work. The people in those situations are the ones we need to work the hardest to protect because they are the most vulnerable to poor conditions and exploitation/coercion. Without protections they contribute to the race to the bottom simply by nature of having no other options, making them willing to work without benefits or for low wages.
> And almost all of my Uber and Lyft drivers had another source of income, were retired, were raising children, or had a medical condition that kept them from holding down a full time job.
This is entirely anecdotal, on top of the fact that "raising children" or "having a medical condition" should not be an excuse to be denied economic stability and benefits.
well they sure as shit aren't getting _anything_ now. What a hollow victory.
> This is entirely anecdotal, on top of the fact that "raising children" or "having a medical condition" should not be an excuse to be denied economic stability and benefits.
Yes I'm using anecdotes from talking with Uber drivers, which isn't as good as a study. But it is better than what you are doing which is speculating. Have you had the experience that almost all of your Uber drivers were hoping for full time employment, with a boss, and working on a set schedule?
This bill will completely change what a job looks like for Uber and Lyft. People choose to work for Uber and Lyft for the flexibility that accommodates different life circumstances not for the pay. This bill will destroy that flexibility, it will improve the lives of a small % of Uber and Lyft's drivers who want to work full time and get benefits from Lyft and Uber. But this will worsen the lives of everyone who works there precisely because of the flexibility.
Agreed, but is that a problem with the gig economy itself or our entire welfare system?
I agree we can make life better for the workers that remain on Lyft/Uber, but what happens to the workers who were "fired" as a result of reduced ridership?
It was absolutely a lifesaver and exactly what I needed at the time. But it's debatable whether it could have been sustained long term.
Personally, I think if instead of chasing imaginary Level 5 autonomy madness with billions of dollars, they had done the unsexy thing and simply paid drivers better, they might not be in this mess. It's pretty insane that they take half of every fare and still can't turn a profit-- seems like a clear sign somebody screwed up &/or made the wrong bet.
Is that stat accurate? If so, what is the argument for imposing a model that the vast majority of drivers don't support?
Because the pool of drivers for a particular company would be massively reduced as well, driver down-time between rides on their platform may be expected to significantly decrease, which was a major reason for running multiple apps in the first place. Basically the remaining drivers will essentially partition themselves into two pools, driving exclusively for either Uber or Lyft. I'm not saying anything about whether that's good or bad, but it seems a likely outcome.
Nothing about this legislation or the court case before it took that flexibility away. Nothing about it requires people to be "full time" either.
Obviously, Lyft and Uber could've anticipated this and could've decided months ago to work on an alternative. Instead they let it come to a head and now they are trying to a dramatic PR push to get the law changed.
Uber/Lyft will control when and where and how long work is. That changes everything about the service (which is what matters more than the price) and makes it nonviable outside of a few major urban areas.
Do you want low-commitment employment (from both sides) or do you want employee benefits. You can't have both.
What do you think independent contractor means? Do you think that nobody should be independent then? Do you realize that full-time driving jobs already exist? Why do you presume that drivers can't make this choice for themselves? Why can't the people who are unhappy with the earnings just stop driving? Why is it better for both riders and drivers to lose this service and income by forced legislation when it already works fine for millions?
With regards to my experiences- I've spent years as an independent contractor. My linkedin is in my profile, feel free to confirm. I know the pros and cons of being an independent contractor and have followed the changes in the law both on the federal and local level. I'd say I'm fairly well versed in it.
Your argument about how "employee == full time" is just a straw man. No one is requiring people to be full time. In fact "flexibility"- which in most survays done on drivers is one of their top concerns- is preserved with the legal cases and subsequent AB5 legislation. The only difference is that as employees drivers would also get paid for idle time while waiting for rides, would have the option of benefits, and Uber would be responsible for paying unemployment taxes for when those riders lose their jobs (like when a pandemic hits).
Why did you ever work as a contractor if you're against not having a min wage and benefits? You claim that's "right" so what changed? Why impose that on others instead of choosing for yourself?
Flexibility means work when, where, and however long you want. AB5 removes this. Employee classification means preset shifts, which means it's only viable with fewer drivers working set schedules in dense areas instead of the fluid supply/demand with high coverage that exists today. This fundamentally changes the service from what consumers want, and that's why it doesn't work.
I don't drive often- I use public transit and lyft. I have talked to drivers, and most of them are pissed that their wages are dropping every year but they can't do things like unionize as they aren't "real employees". My anecdotal evidence, which you value so highly, lines up with what I've been saying.
> Employee classification means preset shifts
This is factually wrong. California doesn't have any law requiring "shifts". It does have a law saying that companies which enforce shifts (such as saying someone needs to be in the office from nine to five) give a minimum of four hours pay if they send people home early, but that's a huge difference from what you're saying.
There are tons of examples of this too- "work from home data entry" is a big field in California, and while they often have deadlines they rarely schedule specific shifts.
Wages decrease because there's more supply than demand. That's why surge pricing exists. The issue isn't the feedback (surveys align with the thousands I've talked to), it's that you don't think AB5 affects flexibility.
However paying by time requires shifts. Ridesharing needs to meet demand. Employees have to be placed in the best location and time to avoid idle drivers. This would lead to fewer drivers working longer hours and less coverage. This changes the service that people expect and pay for, leading to less riders and then even less drivers in a bad feedback loop.
All because some people don't think other people can choose how to spend their own time.
The idea that someone can clock-in, work 2-3 hours, clock-out and then clock in again in 2 weeks tells me this isn't a real job. We need another classification.
And the problem here isn't that Uber's model doesn't work. Uber can transition to this new classification and adjust their business model to make it work, the bigger problem is that the drivers don't want it to work this way. The service works because it can respond to minute-by-minute demand. That's not possible with the new rules.
Outside of the fact that uber would have to pay them more, there is nothing stopping them from working five hours one week and fifty the next.
Exactly, why are so many people forgetting this aspect of ridesharing? The whole point is that you can pick it up and put it down whenever you want for a little extra cash. VERY early on people were able to make a killing doing Uber and that gave others a false impression that this was somehow a viable full time job. It's been years and years since it made economic sense to do Uber on a fulltime basis. Giving drivers benefits isn't going to change the effective hourly rate of $7/hr or whatever it's been for a while.
Now they are trying to avoid the laws that made them unprofitable in the first term.
it was unsustainable from the beggining, they just expected to gain the public opinion to change the laws
A low-skill contract like driving casual passengers just has too much competition to be worth a full-time position, but it's still a great way for extra income with little commitment.
So this news really sucks, as you haven't been able to schedule DMV appointments at all and it looks like it will continue to be that way for the foreseeable futuere. I understand the Uber/Lyft may have had this a long time coming but it really is inconvenient for this to happen during COVID.
Insurance, parking, fuel, depreciation, maintenance, and random events add up. If you don't need it for commuting, most of the recurring rideshare costs vanish.
If you need to make an extra long occasional trip, car rental for a day or two outweighs ownership.
Edit: To be clear, anything other than a car is cheaper for many (not all) people. (e)Bike, shared scooter, walking, trolley, Uber/Lyft, taxi, carpooling, etc. Cities are expensive and small towns are small.
On average, ~50% of car trips are under 2 miles. A car is not required for most of those in most locations.
Riders only have themselves to blame if they made life choices around a service that was clearly unsustainable, Movie Pass style.
Also not all public transit trips take twice as long as a car. In many urban places (which is where any of this scenario makes sense) at rush hour a trip on public transit is often about equivalent to driving if not shorter.
That said, I will concede I'm in a unique position. This legislation isn't completely onerous on me.
I’m in a unique position to do this, because i put myself in that position. i moved near my work and live in an urban area.
even if it cost $400 a month, i would still do it this way. i read when i’m in the car, i wouldn’t trade that for staring at the road.
I’m happy that you’ve found a good situation for yourself and I don’t mean to disparage it. I just don’t think the comparison you’ve made is quite complete.
If one enjoys the lifestyle, spending less on transportation and shifting that spending to housing is a net win. That's how I did it, and for about eight of my eleven years in the Bay, I wouldn't have had it any other way.
I left the Bay in 2018 because I got a remote job and didn't feel like I was getting my money's worth from the city life. Pretty clearly, in 2020, much of what makes city living good is gone, but it will come back; whether that's a matter of years or decades is very much an open question.
Not sure how to handle the fact that this de-facto subsidizes the Peninsula. But it would be a start.
But I think it's rare during commute hours that a ride share driver will drop someone off downtown and immediately find another fare, he's going to have to leave downtown to get his next passenger. So that Uber driver is worse than a single occupant vehicle, he's made 2 trips for one passenger (once to drop me off, once to leave downtown to pick up his next fare).
In off hours, sure, the driver brings someone in, then doesn't have to search far to find someone else looking for a ride, but during commute hours I don't think that's true.
Last I heard, public transit had greatly reduced service in San Francisco, but I'm not sure of the current status.
Public transit for everyday commute to work, plus Uber/Lyft for trips outside of common commute hours or off the beaten path where public transit is less reliable, can definitely be cheaper than car ownership.
And this is a city that's only 7 miles wide -- I used to be able to bike downtown in less than than I spent waiting on the bus on most days (since I didn't just have to wait for one bus, I had to wait for a bus that wasn't already full to take on passengers)
Public transit isn't an option for all people, particularly in low income communities, that have to get from home to work in rural and suburban areas. They aren't dense enough for public transit.
In SF proper, there are more cabs, but don't forget the hour-long waits we had before the ride-sharing thing started. I don't know if it'll get that bad again, but I don't think they authorized thousands of new cabs like (IMO) they should have. Also, I've had cabbies in SF tell me point-blank they won't take my fare because it's not far enough. Yeah, illegal, they don't care.
Further out... good luck. You're in Concord and need a ride to Walnut Creek? Might work, but it might be faster to try Craigslist.
(I live in Dallas TX)
2. You'd be surprised how far you can take an Uber. I had a friend take an Uber from SF to Sacremento.
I didn't have my driver's license for 10+ years, and thought the Californian DMV would surely make me take another driver's test because of that. Nope...after I did the written test, they said my license would come in the mail.
I feel your pain though... living in SF made it a little too easy to just ignore the DL thing, and then I moved to Europe and lived in big cities with excellent public transportation.
Now that I'm finally doing it I'm kicking myself for not just getting it done years ago even if I might not have used it much.
I'm not needing a taxi/uber/lyft for leaving the bar. I'm not going out to a restaurant with friends. I'm not traveling for work/fun and needing an lift to the hotel.
My usage of uber/lyft/taxis went from 100s per month down to 0. If this change happened in 2019, I'd of had significant changes to my daily routine. Today, this changes nothing.
They aren't the innocent victims of gov't overreach for us to venerate. They stonewalled participation in writing a better AB5, because they want no rules but their own.
IMHO This would be a great time for TESLA to spin up a 100% employee based human driving service in California and gobble up the demand.
Hollywood is there because of the weather. The central valley is there because of the weather and the soil. The tech industry is there because of the defense industry in WWII and the importance of the west coast to the war effort in the Pacific. There almost 1000 miles of beautiful coast and some of the best National Parks and National Forests in the country are in California.
The geography and the weather is the root of why California is successful. That has attracted and kept talent and created a positive feedback loop between talent and natural resources.
The California government has the luxury of being able to be the most mismanaged because they don't even have to try. Tax money is abundant from all the economic activity and they have captive industries that would have a hard time relocating elsewhere.
Silicon Valley is because of the defense industry in WW2? OK sure, but then why not Detroit, Boston, Philadelphia etc. The aerospace industry was in Los Angeles, but that moved, so why couldn't tech move?
Here is my alternate hypothesis: California has always been relatively welcoming to people from all around the world. Places like San Francisco (in particular) and Los Angeles have a very long history of being accepting of new ideas, religions, different ethnicity. Not completely, just more than a lot of other places in the US. So it has been a place where people with new ideas come.
As far as the state government-- yeah it could be better. But so could a lot of states. It is not clear to me that California is a worse run state than many others. Still we all should expect improvement.
It simply wouldn't be there in the first place had the weather not been as good as it was.
Part of the reason you're now seeing other cities blossom in importance in film has to do with weather no longer being as important. What continues to be important that preserves Hollywood is the concentration of talent, which itself still has as its root the great weather that helped the industry establish itself there in the first place.
While the weather may no longer be as important, it's the "natural resource" that made the region the epicenter of film in the first place.
> Silicon Valley is because of the defense industry in WW2? OK sure, but then why not Detroit, Boston, Philadelphia etc. The aerospace industry was in Los Angeles, but that moved, so why couldn't tech move?
I mentioned this exactly in the comment you're replying to and you ignored it. There was exactly one thing California got right and that is not enforcing non-compete agreements. This is why Fairchild Semiconductor spawned an entire industry and why companies like DEC around Route 128 did not.
> Here is my alternate hypothesis: California has always been relatively welcoming to people from all around the world.
Agree. But government has absolutely nothing to do with that.
The California government is no different than a trust fund kid failing upwards.
>> The California government is no different than a trust fund kid failing upwards.
The Government is a reflection of the people. California has a more liberal government than some states because the voters are more liberal-- in general-- particularly socially. I am fifth generation, and lots of my relatives are very conservative but still pretty accepting of different beliefs and lifestyles.
There's clearly some downside to that liberalism. You can see how countries in Europe struggle with having the taxes, the protections, and a healthy economy. But California tends to pull toward that model and other states pull to other models. Those other models also have downsides.
Completely agree that that's not all of it. Not enforcing non-competes is just the only piece of it that I can identify that can be credited to the California government.
I'm not arguing that California isn't successful. It's very successful. I'm arguing that California is successful despite its government and that most policies passed by the government are well intentioned but counterproductive.
We shouldn't compare California to other states because every state has different circumstances. We should compare California as it is to what it could be. You could get rid of most of California's governance and the state would do be even more successful because politicians wouldn't be messing things up. For example, there are reasons why California has the highest poverty rate when adjusting for cost of living and a lot has to do with well-meaning but counterproductive policies.
As 20 year California resident, what I do know is that nothing has gotten better here over that time frame. Everything from infrastructure to taxes to city planning is much worse now than ever. CCPA is probably the only good outcome I can think of.
California is one of USA's biggest markets. Even if they don't get their shit together, one of CA's many entrepreneurs will. Who wants free VC bucks?
That said, this particular bill is pretty bad
With the technical might that is Silicon Valley, California only needs to hold their ground for a few months, then Lyft/Uber will become an afterthought
https://www.followthemoney.org/entity-details?eid=37194&defa...
https://www.followthemoney.org/entity-details?eid=133178&def...
List of all sponsors:
https://legiscan.com/CA/sponsors/AB5/2019
As you can see "Labor" is by far the biggest sponsor to the politicans who pushed through this initiative.
I think you are guilty of bad faith reasoning here. First you state that “big labor unions want more power” and your evidence for that claim is “Labor unions push for bills that prevent bad labor practices”.
To help point you in the right direction, why are the United Auto Workers acting in California when there are no unionized auto workers in California? These unions are always seeking to increase there member base because the more members they have the more powerful they are as an entity.
Unions also have a notion of solidarity. What is good for workers in California is usually good for workers in New York. That is why you will often see unions acting across state (and industry) boundaries, in solidarity with other unions and non-union workers.
Entities act in the best interests of themselves.
If unions were truly invested in the best interest of workers instead of the best interest of the union, they would value the desires of the 4/5 of drivers that want independent work as much as the 1/5 of drivers that want to be employees with benefits.
Most likely there is not a single explanation, usually issues like these are more complicated then that. There is no consensus on whether unions are more powerful in the US then elsewhere, I’m sure you can easily find examples—or spin the narrative—to back either case. And finally there is no evidence for some ulterior motive of driver’s unions, nor even a convincing narrative. Quite the contrary there is both evidence and a somewhat convincing narrative for why the ride-share companies would want to keep their workers from unionizing and asking for full-time worker’s benefits.
No, the heart of the issue is definitely the dismal state of health care in the US.
Teachers Unions, UAW, and the AFLCIO are pretty much the strongest lobbies in America.
My employer pays probably a shit ton of money for my health insurance and what I get is the most subpar, confusing, broken and sometimes blatantly extortive service ever.
I live in Austin and sometimes I think if I really need a major procedure it would be just simpler to drive to Mexico and get it done there. In fact, that's what many people in South Texas do, so there's your benchmark for how broken is healthcare in the US.
This even has a name: Medical Tourism.
I am downright surprised I haven't seen a YC startup that performs this sort of medical tourism brokerage to be honest. Take this business model! I'll be your first angel investment.
I know the insurance plan that Utah government employees are on will pay you to go to Mexico to get your prescriptions filled. Airfare, hotel, and medication costs are all covered. Free vacation just so the company doesn't have to pay the US prices for drugs.
Edit: This is true for India which is a top medical tourism place:
https://www.orfonline.org/expert-speak/implications-india-me...
https://scroll.in/article/931857/with-20-medical-professiona...
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC404528
http://www.who.int/hrh/resources/16058health_workforce_India...
No, really: you just, flat out, made this up.
You have no way of knowing that demand for services in every single country with medical tourism outstrips supply of professionals. You just assumed it.
If it doesn't, which is just as likely (I think more, but I also don't know, and unlike you I won't pretend to know), then you're injecting money into the local economy, while getting medical/dental care at a lower price: win win.
The US has a uniquely onerous path of education and accreditation for medical professionals, with substantial supply-side limitation in the form of slots for medical school. Other places aren't so burdened.
Something to think about.
https://www.nytimes.com/2019/08/09/business/medical-tourism-...
Though, I'm not convinced that's the "correct" solution from a broad societal perspective.
Earlier this year my family had a medical emergency that resulted in us being billed a truly staggering amount of money for services that were technically elective, somewhat unproven, and not necessarily even recommended by the standard of care, and for which the actual sticker price varies wildly from hospital to hospital. But, when an emergency happens, you don't get to shop for hospitals, and you more-or-less unthinkingly do what the care team recommends, because there's simply no opportunity to stop and do any sort of cost/benefit analysis. As luck would have it, we ended up at a hospital that both tends toward the more liberal end of the spectrum in terms of what they do, and tends toward the more expensive end of the price range.
Fortunately our financial hit won't be too bad, because we have decent employer-provided insurance, and that cushions the blow quite a bit. If there's a silver lining, it's that we hit our out of pocket expense limit in the first part of the year, so we basically get everything for free for the rest of the year. But that whole situation is also a big part of the problem. We're nominally in the driver's seat, but, in practice, we really aren't in charge. Because we don't have access to a lot of the information necessary to make informed decisions, but also because we've been insulated from some of the major factors that might motivate an informed decision.
Social criticism in the USA tends to revolve around the "theater" metaphor. We have security theater, we have hygiene theater. I would characterize the underlying principle of the USA's health care system as agency theater.
According to the NYT: "During World War II, federal wage controls prevented employers from wooing workers with higher pay, so companies started offering health insurance as a way around the law. Of course, this form of nonmonetary compensation is still pay. When the war ended, the practice stuck."
I would much rather have a system where I was paid more and got to choose my health insurance provider. That way I could keep my insurance when I change jobs or if I wanted to freelance.
I run a company that helps software engineers find contract work, and the #1 question we get is "how much should I charge?". The #2 question is "what do I do for health insurance?"
It would seem like businesses brought this on themselves by offering benefits to get around compensation limits imposed by the government. Or you could say that this was caused by the government imposing limits on compensation. Super interesting to think that the root cause of our current problem could have been created 80 years ago.
Single payer is also seen as too paternalistic by a large minority of the US, so there is that as well.
There is a reason why ACA messaging from Democrats always included the fact that you could keep your existing insurance if you wanted.
“Everyone has different solutions” as in the two parties, both corporatist through and through, are only willing to offer solutions that nip around the edges of the problem with ridiculously complex regulations that ultimately result in less competition and higher profits for healthcare conglomerates.
Single payer in the vein of “Medicare for All” is popular for voters of both parties. It’s just that our representatives represent us in name only.
> Single payer is also seen as too paternalistic by a large minority of the US, so there is that as well.
Again there’s a disconnect between the discourse you can see on corporate cable news and major newspapers and what people actually think and want.
That said, the corporate media and Dems/Rs have been very very successful in 50 years of messaging that everything the government does = bad, inefficient, rationing. And everything corporate = dynamic, efficient, desirable. Almost everything that can be privatized has been privatized via crony capitalism, but they can still say “govt has big budgets, shitty results” when it’s their privatization that is the exact reason for the decay.
It’s depressing how effective it all is.
To a certain extent, I agree with the second; I'm kind of glad that the current administration doesn't have control over my health care...
It's potentially good for employers, as it increases friction in the labor market.
There is really isn't much incentive for companies to stop offering health insurance as a benefit.
If you pay for medical insurance yourself, it starts getting complicated[0]. They honestly just need to make it so any medical insurance payments should be 100% deductible, regardless of anything else. It would help level the playing field.
[0] https://www.investopedia.com/are-health-insurance-premiums-t...
That is a strange way to Phrase that... Government imposes unethical pay caps, and the "business" brought this on, not government?
No this problem is 100% the fault of the government not business
I would rather see employment and health insurance totally separated from each other.
But if people aren't open to that for whatever reason, one alternative would be a system where the employee freely picks any insurance plan, but the employer pays the premiums tax-free like they do now.
If you make it so the set of insurance choices is the same for all employers and for individuals paying their own way, then you could move around between employers or freelance.
Right now, big employers have bargaining power due to their size, so you'd lose that, but perhaps stronger competition (from everyone freely choosing) would make up for it.
Employers are required to provide health plans to any part or full time employees (excluding contractors) who work more than 30 hours a week.
All founders I've talked with about it find it crazy that they're determining the healthcare choices for their team, and it's much worse when they are supporting a diverse team.
"""Fred has 3 kids and cares about their dental, Tim mostly cares about mental health, Alice runs ultramarathons, and Bob just got married. The main things we have in common are we like building cryptocurrency tech and work in similar time zones."""
I think the heart of the issue is the entirely artificial split between the concept of employee and contractor. (Much like the arbitrary split between taxi and car service in nyc.)
Making everyone a contractor for every job, with the terms of the job specified in the contract, seems much more straightforward. I don’t think that the concept of “employment” needs to be one size fits all, like standard W-2 is today in the US.
It’s an artifact of tax law, the scam that is withholding (make most people not “feel” their taxes), and a dominant manufacturing economy model that no longer exists in the US.
I think the law rightfully distinguishes between truly negotiable contracts and take-it-or-leave-it terms offered by a party with more negotiating power.
This is entirely arbitrary.
It's not mandated but Obama care did introduce tax penalties for those that don't. Exact rules are complicated.
If you have fewer than 50 full time employees, yes (depending on the state).
If you have 50 or more employees, you have to offer healthcare (or pay penalties).
Citizens want goods for cheaper, obviously. But citizens also like the concept of people and companies doing "their fair share". For example a fair amount of people were outraged when it was revealed that official Walmart policy was to direct underpaid employees into Medicaid, EBT, etc. rather than just paying them to afford basic life expenses. And the gig economy if anything manages to be even more exploitative than that.
California has a strong history of voters holding politicians doing unpopular things accountable (see: Gray Davis) or doing things that override the will of politicians (see: Prop 13). There has not been strong voter organization against AB5, which speaks volumes about how much of a non-issue it is for voters.
For this change, companies like Uber and Lyft will have to completely reorganize their internal systems, ranging from their relationships with drivers to their tooling for organizing their drivers.
They say things like "passengers would experience reduced service, especially in suburban and rural areas" when what they really mean is "lyft would have to pay drivers to be available in that area even when demand is low, and Lyft doesn't want to pay drivers to idle in low demand spaces". There are various solutions to this, but they would all cost Lyft and Uber money, and heaven forbid they not be able to pass those expenses onto others, such as drivers that would hang around those areas _without_ any compensation.
The real heart of the matter here is that 10 years ago Uber disrupted the taxi industry. Now that they're the incumbents, changes like these put Uber and Lyft in a position to be disrupted by newer companies that more easily adapt to regulatory changes, or possibly the taxi companies they disrupted a decade ago. What we're seeing now is Lyft taking drastic measures to try and enrage the public against these policies.
This is a kid throwing a tantrum because they aren't getting cake after refusing to their chores.
https://en.wikipedia.org/wiki/General_Motors_streetcar_consp...
In an nutshell: USA auto manufacturers purchased and dismantled the streetcar business to force people to have to buy cars.
companies and their employees would both be better supported if we established a Universal Basic Income.
While they are at it, they could also provide basic food.
That way, with your UBI, housing, and food you could live a dream life. We won't call them 'camps' though, but give them a hip millenial-approved name. Maybe 'launch centers'?
https://www.nytimes.com/1997/02/27/business/job-insecurity-o...
America does not have a stories history of being labor friendly. It’s pretty much old European pissing competitions imported anew after WW2. Identity which the country had begun to schlep off between the Gilded Age and WW1. Refugees brought it back over.
The best part of all this is Adam Smith only ever mentions markets in the context of a free labor market, buoyed by government support of equality of condition.
But Smith and Aristotle, who wrote Democracy is likely the most moral government, are cast aside for James Madison who wrote the Senate ought to protect the rich from Democracy or the people will take all the aristocrats stuff.
This is all 2,000+ years old rhetoric. Human biology hasn’t evolved so fast in that time that such concerns of the past are rendered obsolete.
To learn more: https://plato.stanford.edu/entries/aristotle-politics/
He was not of average status. His nuance and negativity was, to my mind, self preservation driven. Nonetheless, he understood the benefits of Democracy to what we’d call “Main Street” life as obvious. He dismissed on those grounds as well, given the threat to his status. He got what it meant as an idea and agreed it would be a moral win for the public.
Ultimately I’m not writing a biography here. This isn’t rocket science and there’s little new territory to really be walked.
America of a generation ago had high taxes flooding communities with money. Now that generation is wielding a nations wealth against the next generation.
America is a lot of control freaks policing each other for compliance to sound economics and calling it freedom.
Most rideshare drivers are not properly insured — while passengers are well-covered, the drivers and their vehicles are not. Because the drivers are contractors and must navigate the insurance system as individuals, many do not possess adequate knowledge and statistically speaking, a large number are guaranteed to make mistakes when purchasing coverage.
If drivers were employees, then accident coverage for drivers and their vehicles becomes the responsibility of the rideshare companies. There would be fewer bad outcomes for drivers, but because the rideshare companies would bear greater risk, their profits would be reduced.
For a lot of people who drive Lyft, catastrophic care could be a good fit, e.g. people in between jobs who expect to have a company plan at their next full-time position. This wouldn't entirely close the gap towards providing gig workers with benefits, but it would have helped.
There's also people for whom Lyft is a second job -- I'm thinking of a ride with a Chicago public school teacher who drove on weekends and breaks -- and I don't think it makes sense to force Lyft to provide them with insurance.
[0] https://www.healthcare.gov/health-coverage-exemptions/2019-e....
Look, I'm not happy about health care costs either, but ACA plans for young are really not that expensive. Further, plans prior to ACA offered terrible coverage. Yes, people got to say they had coverage, but the lifetime caps bankrupted people repeatedly. Eliminating the caps and mandating minimum essential coverage was absolutely essential to eliminating what really were scams of coverage. Further, even if you really want to get terrible coverage for less money, you can always use the loop hole and purchase coverage through a health care sharing ministry, which are even cheaper. Though, I strongly recommend against that because there's no guarantee that a bill will be covered.
My numbers are based on my own experiences shopping for healthcare in an ACA exchange in NY.
And, to be sure, coverage is still pretty bad. Just because someone has coverage doesn't mean they have the money to use coverage. Unless there's another subsidy, and there may be, that bronze Fidelis plan has a $8150 out of pocket max and it's unlikely someone making $30k/year is going to have that much money laying around. That said, at least the plan has a couple of free PCP visits.
Anyway, my intention here isn't to beat a dead horse. It's really important to me that people get health care coverage and costs are a barrier. I believe ACA plans to be far more affordable than people think them to be. I don't doubt that you saw a price in the realm you mentioned because they're out there, but often better pricing can be found and I end up doing these searches a lot.
I don't really understand why this is necessary. Can't there still be flexible arrangements with drivers simply clocking their work and then getting some kind of salary derived from that? Can't they still get paid bonuses for driving in particularly unwanted hours?
Sure, this would be a complex contract, but I don't see how this is impossible. But I'm not a USA citizen so maybe there is something I'm missing.
What I'm guessing is that having people waiting being paid $0 is a core principal of Uber and Lyft. They hinge on over-supply. If they have to pay minimum wage to everyone who signs on, they need to be a lot more careful about who they allow to sign on, and when.
Saying it'll go to shift work though seems a bit extreme. Sounds like a tantrum to me.
This is why cab companies don't already let drivers pick their own hours (assuming they don't use the uber-lite approach of people just hiring the cab\medallion).
1. It is by far not as bad as Lyft and Uber present this and 2. I think this is a good thing overall. Less payment flexibility means a more stable income. Sure, some drivers don't need that stability, but those who do need it, really need it and this is more important in my mind.
The second point also fits into the narrative that this only benefits 1/5 of the drivers but that these drivers are doing a majority of the rides. I don't have a citation for that, so take it with a grain of salt :)
Even if drivers don't game the system, there will always be natural imbalance between supply and demand. Surge bonuses can mitigate this imbalance, but scheduling shifts is the more economically efficient way to solve the imbalance problem (hence why they say schedule flexibility will no longer be a feature in a driver employment model).
All of this is already practiced in some place in the world. Sure, it's not as easy as creating an account on the app and off you go, but the driver flexibility of choosing when to drive doesn't seem to be so hard to me.
There are all kinds of adjustments you can make.
Another thing: you don't get paid for "doing nothing", you are getting paid for dropping everything when needed. On these conditions you're limited in all kinds of ways, e.g.
Taking care of a small kid alone? - not possible. Going shopping? - not really possible.
Option 1: Deny any attempts to "clock in" whenever the number of drivers waiting in a region exceeds a certain density.
Option 2: Your shift starts when you pick up a passenger, and ends when you drop them off. (I have no idea whether this actually meets the state's requirements. I do suspect that there exists an equally clever solution that will work.)
Uber and friends built their entire businesses in working around existing laws. I'm sure they can figure out how to navigate the new laws.
Here in Slovakia even regular taxi drivers can be independent contractors and it's perfectly OK with the law, a lot of taxi drivers here even ride for multiple companies (regular taxi dispatchers, uber, bolt, their own prices for longer trips)
This seems that it can also force software devs to become employed if they just want to do a short-term contract for a software company and potentially affect other businesses as well.
In our country, we instead require independent contractors to use their own resources/equipment to perform the job while allowing companies to hire them even if it's their main course of business.
* Meal & rest breaks
* Callback pay
* Split Shift premiums
* Reporting premium (if you show up to work, but less work to do than half your scheduled shift)
The only way I see this working is somebody started some "Driver Pool" company that employed drivers fulltime and then Uber/Lyft/Doordash/Grubhub/etc all use that company.
Callback, split shift, and reporting premiums only apply to my knowledge if the shifts are scheduled. I guess it depends if they go towards scheduled shifts over show up whenever, and/or if they can make it 'i'd like to work: yes/no'
So don't.
Either give the drivers what the California politicians are saying all Californians should have as a minimum benefit, and then go to court to argue why Lyft drivers should get something else, or let Lyft drivers set their own prices as they should be able to as independent contractors.
Both companies did go to court (which is why the shutdown is happening now and not eight months ago) and Uber does allow drivers to set their own rates.[1]
The people involved in these economic transactions know what they're getting into and consent. The negative externalities created (pollution, congestion, increased accidents, road wear & tear) are paid for by gas taxes, liability insurance, and road/bridge tolls. There are positive externalities such as lives saved due to fewer drunk drivers. It seems crazy to stop consenting adults from doing an activity that, as far as I can tell, mutually benefits everyone involved.
The root issue is that health insurance is tied to employment, which reduces human freedom and distorts the economy in diverse ways.
Solve the root issue and many things become less complicated.
How does it compare?
Some want to hinder our ability to trade with Chinese firms or hire foreign workers, others want to hinder our ability to take gig economy jobs or operate our home as an Airbnb.
The idea that these authoritarians have is that economic freedom is bad.
Why not just make laws that very specifically protect the most vulnerable and foist the tax burden fairly on everyone else? It's a historical accident that employee provided healthcare is tax deductible and that workers comp and social security/medicare are funded by payroll taxes.
All of the quirky rules and perverse incentives exist because at some point in the past they benefited some established interest group.
There is a very disappointing lack of creativity and willingness to look at the simple issue at the core of all of these problems. We can't let the most vulnerable workers be victimized, but we must do everything possible to preserve their economic freedom.
I think UBI is the closest we are seeing to a meaningful rethink of how we handle entitlement spending. We need the equivalent creativity to help manage the funding side.
-- Are free from control of the company in how the job is executed
-- Perform work outside the company's normal line of business
-- Are customarily engaged in this work anyway as an independent worker
This last condition is really unreasonable I think. Basically someone can only be counted as a contractor if they already do that kind of work as their primary employment. This basically forecloses anyone from casually offering their time as a driver, even if that's a perfectly efficient and reasonable thing for people to do.
If I were cynical, I would say that this is a concession to taxi / labor lobbies to protect their wages. Which I do not support.
Strange how Sacramento representatives, in trying to fix certain failings of current laws, always try to insert something extra like this while they do it.
[1] https://www.dir.ca.gov/dlse/faq_independentcontractor.htm
On #3, so companies would just ask the people driving whether "this is your customary line of work" and if you don't answer right, you're not allowed to drive? Or would there be some independent way this would be verified? Or is it up to the company to test how much risk they're willing to look the other way on?
*Suburban and rural passenger transport on a route, within the same province regardless of distance, or shorter than 100 kilometres without regards of provincial boundaries, count as medium-distance mass transportation.
*Those medium-distance bus licences are tied to vehicle and non-transferable.
*Medium-distance bus owners have to get a licence called D4, which is similar in shape to a European intercity bus company licence, however, subject to a more stringent regime. I am going to explain that below.
*A D4 licence is primarily intended for end-to-end and end-to-mid transportation. Up to 12 such vehicles is allowed to be registered to each such licence.
*In case that there are multiple overlapping such routes, shorter route takes the precedence of transporting inside the common section. For example, if you want to go from B to C, and there is a medium-distance bus covering B-C route, and one covering A-B-C-D route, the latter cannot accept you (you could also think of this as a mandatory gentleman's agreement). However, if you want to go from B to D, you can take the latter without requiring a transfer in C.
*D4 licences have their passenger capacity strictly regulated, such that you cannot have more vehicles than that, 100% demand at least one week's worth of trips each year, and 80% demand in average throughout the validity of the licence.
*D4 licences are reviewed thoroughly during renewals as if you get afresh. It takes approximately two weeks to process a D4 licence application (one week in the provincial transportation coordination centre, one week in the national D4 coordination centre).
*Those medium distance buses are usually operated by private operators, and allowed to enter the city centers more freely than long distance buses, subject to the restrictions above.So the issue is clearly not the ridesharing business. But sure, I'll bite. Let's follow this to its logical conclusion.
So you kill Uber and Lyft in California. Great. The California elite can pat themselves on the back for protecting all those workers from choosing to take "bad" jobs.
But wait. Now what? How are you going to ensure all those unemployed drivers get healthcare benefits now?
Will you go after all the fast food restaurants where they'll be forced to work part-time now (also with no benefits) to feed their children? And then after that, the next set of low wage jobs? I guess nobody thought that far.
My hunch is, the people who cared most about passing this law don't actually care about the workers. They just care about the narrative, and the self satisfied feeling of hurting the "evil capitalist" boogeyman. Once the boogeyman is killed, they will move on and leave the workers behind to fend for themselves. Because the goal wasn't to give workers healthcare. That would've been a healthcare bill.
Wouldn't it have been sensible to enforce and regulate minimum fare thresholds based on ride and distance which can be even applied on taxis?
Now they are motivating me to look for alternatives and actually give 'some random taxi app' a name.
this combined with "dont attribute to malice what can be attributed to stupidity" leads me to doubt their professionalism. I think this is a huge mistake. and if it's not a mistake but inability of the company to execute, then that's on executives.
You called some taxi company, might get put on hold, told them where to pick you up, and they would show up anywhere between 30 and 60 minutes later. Sometimes they would never show up. Many smaller cities in California had no taxi service of any kind. And good luck getting a taxi home from a bar after midnight!
Uber and Lyft made it realistic for people to expect that they could actually get a taxi in California in a reasonable amount of time, pretty much any time of day or night. That's why people used them so much. This is not something the older taxi companies or "some random taxi app" will be able to pull off.
If so, would there be an equity-based loophole that would allow it to continue operating in California under these rules?
[note: I'm not being sarcastic about calling the Facebook moms group “highly powerful”—they have significant civic clout in local politics/business/activism.]
At the end of the day, the added value of Uber and Lyft is not that amazing, and should be easy to replicate in a p2p system.
It would
1) workaround the law, there's no employer, no company, and no one to sanction 2) be impossible to regulate or shutdown
Currently drivers don't get to set their own prices and have to abide by other such things that don't make them independent contractors in the eyes on the law.
We either have "full time = forty hours of work and tons of benefits that have been shoehorned into employment because our government doesn't provide it" or "part time = less than forty hours and you get abused"
I'm not privy so I won't pretend to have the right idea, but it seems like there should be a middle ground.
Unemployment is a different case, but here, it would actually make the state liable for more money—it would be a pretty weird greed situation.
Not if they are under the reporting limit, which many drivers are.
1) What do services like Uber/Lyft/Doordash (who are proposing Prop 22) currently offer in terms of benefits?
2) How do current benefits compare to what will be mandated by Prop 22?
3) If there is any difference, why? Is a state law required to treat your contractors better than the bare minimum?
I mean other than the fact that it would make no money.
What could California do to the developers of such an app?
Wasn’t this a proposed example application of ethereum?
However it's likely that without changes, they will just operate in a few core urban regions rather than the widespread coverage they have today.
Personally I think the idea of being a contractor to loosely pick up some extra cash is a great thing, assuming this is effectively an extra job and way less than 40h/week. I don't know how common that actually is -- almost every Lyft/Uber driver I've asked are working 8+ hours, and driving into SF/NYC/DC/LA from a far away location.
Why should drivers not have a choice? What if flexibility is important to them? Why do hours matter they're a contractor? Should they not set their own time? Do you also oppose freelance writers or artists that work 40+ hours?
The reason why we have legislation that creates regulation is because there's a body of people trying to look out for the larger common good, particularly when existing labor laws are being skirted around. If there wasn't a problem of exploitation of this entire business model (not just Lyft, but also Postmates, Instacart, task rabbit, etc), then CA wouldn't be intervening.
If NYTimes and all other news publishers had people working full time for only them, but only classified them as contractors (so much flexibility! except when you need to make a full time living), then yes I would have a problem with it. In fact, I believe that would be breaking the law.
Who's looking out for drivers? Do they have any experience of driving? Why do most drivers want flexibility and say they're against these changes then? Why don't the existing unfilled driving jobs suffice for those who want jobs? If drivers are clearly choosing to be rideshare contractors instead of other open jobs, why should they no longer have that choice?
If you're going to remove people's freedom then you better have an absolutely perfect explanation of what they're supposedly suffering from. If the best you can think of is that some people don't make as much as you want then that's just not good enough.
If CA wanted real change, a new 3rd classification should've been created, or offer public health and benefits pools that all contractors can pay into. Instead this is the same state that fines tax-paying citizens for not having health insurance but offers it for free to illegal immigrants. So no, I don't see how CA govt represents the people or has any idea about the common good.
Sigh.
It's the service, not the price, that made the biggest difference for users. And this service requires having thousands of drivers able to start at a moment's notice, which is not viable under an employee-shift driven model.
AB5 affects more than just ridesharing too. Many writers, artists and other creative professionals are suffering as well. What abuse are they affected by?
you may say it’s what contract is. but without me being able to see where to drive, whom to drive and set price as I wish, without affecting my rating - it’s just talk.
And you can set the price. You can't see the destination but you do know the approximate time and direction.
If you don't have total control and transparency of the contract you pick up then it isn't contracting
Just because someone freely accepts work, doesn't mean its automatically free of exploitation. Exploitation just means one party is taking advantage of another parties weakness.
Rideshare specifically - I don't think this exploitation is unilateral, but it does exist.
Example - UAE commercial builders freely attracting Pakistan/India laborers and then holding their passports hostage when they realize it's not worth it. https://www.rt.com/news/353432-uae-migrant-workers-slavery/
EDIT: I should clarify - there are degrees of exploitation, the UAE example is an extreme (but used as an example because its so clear cut). My overall point has more to do with people "freely choosing to work" as an idea that people can't be exploited as a result.
Drivers are not forced into anything. They apply and can quit anytime. Earnings and fares are completely transparent. Their schedule is determined by them. Where's the exploitation?
Have you ever driven for Uber? I find it odd that so many people claim to know better for others without any experience of the situation.
> Have you ever driven for Uber? I find it odd that so many people claim to know better for others without any experience of the situation.
I have not, but calculating the economics is pretty damn simple, and their earnings are shit (most drivers dont take into account taxes, car costs, gas, car depreciation, etc.).
I think the problem is that you have to bifurcate those who want a full-time-like salary with those who drive to earn a few bucks, otherwise the discussion breaks down.
Earnings vary wildy by person. Some people do great, others don't. There's no universal calculation. Ridesharing has always been about flexibility, not full-time employment, even though some people work full-time hours.
There are numerous other driving jobs if you wanted employment instead of being independent. Perhaps suggesting that instead of changing the law for everyone else would be the better option.
See my edit - I clarified this.
> Ridesharing has always been about flexibility, not full-time employment, even though some people work full-time hours.
Have you ever driven for Uber? This is not correct. Why would drivers sue Uber/Lyft if that wasn't the case?
> Earnings vary wildy by person. Some people do great, others don't. There's no universal calculation.
And some earnings don't even give people enough money to live. Do you understand why most modern societies have minimum wage?
You should explain exactly how these drivers are not free before arguing to take their freedom of work away.
If you can't understand why people have to work, I don't think I can help explain that.
Lyft/Uber keep their drivers on a leash while saying they're independent contractors. And that is exploitation.
More importantly these definitions are decades old and need updating for the modern era. The better solution would be to create a new classification between employee and freelance.
People who have no idea or experience of others but want to remove their freedom and tell them what's best for them is far more insidious and dangerous.
That's the basis of society, people who have a better overall views of things decide for you all the time, and it should be like that.
What's the opposite ? Private for profit companies deciding what's better for "you" ? That's what Uber and Amazon are trying to do and that's why they lose dozens of court cases about workers rights all over the world.
I don't even get your point, "it's not as bad as X", ok but what's the goal ? Raise the bar so that everyone has access to safe, sustainable jobs or lower the bar to the lowest acceptable working conditions ?
When did I make the point that "it's not as bad as X"? Both full-time driving jobs and freelance ride-sharing exist. Drivers can already choose what works for them, and many choose ride-sharing for the flexibility it offers and because it's what works in addition to their prior commitments.
Why do you want to take away that opportunity or think that people are incapable of making that choice for themselves?
That's good because that way they can pay for their car insurance, health insurance, pension, gas, car maintenance, self employment taxes, frequent car cleaning, &c.
I'm not saying the drivers are stupid, I'm saying Uber &co are very smart.
Not sure how else to read your previous statement.
The gov will have to weigh the benefit of people having affordable rides on demand plus people who want “side money” vs higher fares plus people who now are either out of a job or out of side money.
Source: I run a company that helps freelance/contract software engineers find work.
You will be drunk very quickly.
In other words, I as a rational consumer will use the service that is cheapest when all other factors are identical. Driver's as rational actors will do precisely the opposite - the one paying me the most - as neither platform found a way to differentiate themselves on driver benefits.
This system behaves according to market principles and as such, costs need to be constantly cut to fight off competing rideshare services.
Über needs lyft to die and vice versa. The real battle can be further abstracted to the investment firms supporting each company. Since the investors know that so long as their bet is funded and working towards one of the two endgames for rideshares (full self driving or death of competition) it doesn't matter how much money is lost per ride.
Either the driver rented the car to a middleman who rented the medallion from a rich owner, or said owner was selling and financing (most banks won't touch these medallions!) a medallion at a ridiculous interest rate to a driver that plans to use it as his retirement savings.
Pre-Uber, the more I spoke to cab drivers the more it seemed their industry was a pyramid schemed aimed at helping established rent-seeker take advantage of often poor new immigrants. Uber brought a breeze of fresh air: Someone could simply buy a car, calculate the depreciation and it's value on the market (since unlike medallions cars are relatively liquid assets!) do rideshare and calculate their profits or loss. They can get out of the game at anytime.
There are plenty of commercial banks that have underwritten loans for taxi medallions and built up a significant portfolio Just in NY for example - North Fork Bank, Capital One, Provident and Signature Bank, See:
https://www.autofinancenews.net/allposts/finance/loss-mitiga...
https://www.businesswire.com/news/home/20200117005338/en/Sig...
I really wish we could stop calling Uber ridesharing, when the majority of their business is in fact not. It cause problems for actual ridesharing, which do enjoy some legal protection in some countries.
But there is no right to a business model.
Lyft is a business model that found a loophole in a previously regulated business and was able to combine a technology upgrade with a way to pay substandard compensation. That legislators closed this loophole is not a surprise. The exact legislation will never be perfect, and will probably not be changed if it is "good enough".
If Lyft and Uber want to back up their claims that they aren't livery services but simply a technology platform, then there should be no problem with eliminating the independent contractor drivers.
The fact that they have to "shut down" only proves they were misrepresenting drivers for as long as they have existed.
Why do you think they couldn't operate?
This makes no sense. There are industries ALL over that depend heavily on independent contractors - it's incredibly common in construction, agriculture, trade services, etc.
And yes, the business absolutely can operate without any given independent contractor, but it cannot operate without access to any independent contractors at all.
Hell, what do you think a "general contractor" does on a job site? Because the answer is basically organize a bunch of independent contractors. They also couldn't exist if legally they had to hire every plumber/painter/electrician/drywaller/roofer/framer etc full time.
So while I think uber/lyft DO need legislation to address, I think hamfisting them into the legal model of full time employment is... fucking dumb.
Uber and Lyft have always lied about the nature of their business.
The first lie was that the passenger was, "sharing a ride". This lie was necessary to support the second lie which was that, "were not a Taxi service" but a "technology platform".
Your Uber or Lyft driver was not planning on going to your destination until you "hailed" them to do so. So it's not "ride sharing". It's a livery service.
But by lying both companies could ignore existing laws.
If it's ok for people to lie about what it is they do so they can skirt existing laws than I guess robbing banks could be classified as "undeclared venture capital opportunities".
Also why aren't predatory business laws ever used against VC backed businesses? Why is it ok for ultra wealthy people to destroy businesses by offering products and services at below what it costs to provide them? And to do this not for short periods of time but for over a decade?
In international trade this would be called, "dumping" and the US complains and files trade disputes about it constantly. Why? Because it destroys good paying jobs. But apparently if your a VC backed Unicorn and just so damn hip and sexy then everyone is supposed to just look the other way and praise you for "your genius".
I hope whatever you do for a living gets undermined in the same way, perhaps then you'll reevaluate what's actually legal, just and sustainable for a nation of people
Everybody likes to complain about California. When I was born here it was about 15m people. Now its 40m. If you are unhappy, please leave to a lower cost, lower tax state. People have been predicting California's decline my entire life and the real problem is it can't handle the growth. Also, California has been sucking up employing the young and of mid-west and south for a century. Now those states get mad when "Californians" move to places like Austin. Where do you think they came from originally?
The successes of people within a state might be because the state. Or it might be despite the state. I think a lot of California’s success is despite the state’s actions or policies. Reasonable minds can disagree.
The comparison I like to make is with TX. If Texas was even moderately liberal/centrist and enacted commonsense policies (Medicaid expansion, State taxes to fund healthcare education etc) it would do a LOT better. Now, Texas HAS been successful despite its Government doing nothing/actively getting in the way.
If by progress you mean increase poverty then we agree. Otherwise I didn’t talk about “progress” one way or another.
> If Texas was even moderately liberal/centrist and enacted commonsense policies (Medicaid expansion, State taxes to fund healthcare education etc) it would do a LOT better.
Maybe. Or maybe Texas would do worse and their poverty rate would grow to match California!
California is able to pass all kinds of bills and spend all kinds of money because it is a very very wealthy state. Did California policies directly cause that wealth or is Hollywood + Silicon Valley a matter of luck? Or perhaps out of California’s thousands of policies only a couple (such as non-compete) had a significant influence on their economic bounty.
(1) https://www.usnews.com/news/best-states/rankings/economy
(1) https://en.wikipedia.org/wiki/Red_states_and_blue_states
(2) https://www.cnbc.com/2018/11/15/charts-democrats-represent-m...
People make more money in California, but they also spend more on housing, taxes, food, gas, etc.
I don't disagree with you vis-a-vis the anti-tax sentiment, but you're making a strong claim that extremely liberal state government policies drive economies, and that's a reach.
Blue: 66.8M (5.7 + 7.6 + 39.5 + 4.2 + 6.8 + 3)
Red: 12.3M (3.2 + 1.8 + 7.3)
Swing (aka Florida): 21.5M
This can be a bit confusing so let's skip straight to the point. If you take the house of representatives and add up GDP by district, democrats account for $10.2T and republicans account for $6.2T (1). The differences don't stop there. Republican districts have slower economic growth, less skilled labor, less educated workers, and a host of other bad indicators.
(1) https://www.cnbc.com/2018/11/15/charts-democrats-represent-m...
Rural districts lean Republican, and urban districts lean Democratic. I'd wager that the bad indicators you mention are better explained by the rural/urban divide more so than political leanings. A central business district of a major city is going to have better economic growth, higher-skilled and more educated labor, and a host of other good indicators compared to farmland.
I agree there is correlation between dense urban areas (which are more likely to lean Democratic) having a higher GDP output and rural areas (which are more likely to lean Republican) having a lower GDP output. However, you would need to provide stronger evidence that there is any causality established there.
I'd say the causality runs the other way around: people in high density living situations (which for better or worse have been the primary driver of GDP growth since the industrial revolution) are amenable to more government regulation, simply by virtue of the problems caused by that same density -- people encounter "this is why we can't have nice things" kinds of situations, and want regulation to counter those, a lot more often when squeezed into big cities. Therefore those places lean Democratic in the US. The opposite applies for rural areas. I don't think you can claim that you could take a rural (and therefore Republican-leaning) area, turn the voters there Democratic, and cause economic growth to happen, without first turning it into a dense city.
Also many of the people paying the highest taxes in CA are not even from there (executives, tech workers, entertainment workers), which kind of breaks down the argument of giving back to the environment that produced you.
I would be perfectly happy with paying income and sales taxes as high as they are in California if they were assessed more fairly (no low taxes because your grandparents lived here) and if I felt like I got enough out of public services.
This doesn't make sense. Are you saying people should only pay taxes in the state they were born in forever? That's not how taxation works.
Let's say Prop 13 was repealed. Rich neighborhoods would still get more property tax revenue than poor neighborhoods, because the properties in rich neighborhoods are worth more.
If you want to solve the disparity in school funding you need to stop basing it on the values of the homes in the neighborhoods surrounding the schools.
Repealing Prop 13 will give schools in poor areas more money than they have now, but they will never get as much money as schools in rich areas as long as the property tax funding model persists.
Not sure what you're trying to say here.
(1) https://www.eia.gov/dnav/pet/pet_crd_pres_a_EPC0_R01_mmbbl_a...
(2) https://www.eia.gov/energyexplained/oil-and-petroleum-produc...
(3) https://www.usnews.com/news/best-states/rankings
(4) https://wallethub.com/edu/best-states-to-live-in/62617/#main...
https://www.google.com/search?q=history+of+hollywood+film+in...
People are, by the millions.
But unlike many other states, the population of California has not actually gone down (see below). Maybe it will, but why is that a problem when traffic and housing costs are such an issue?
https://www.google.com/search?client=firefox-b-1-d&q=populat...
[1] - https://www.theverge.com/2019/5/8/18535627/uber-lyft-sf-traf...
[2] - https://www.chicagotribune.com/business/ct-biz-uber-driver-w...
“Mobile sources of air pollution from cars, trucks, ships, emissions from construction equipment, and tire and brake wear on roadways are the biggest root cause of poor air quality in the city, and addressing these should result in positive air quality trends.”
https://sfgov.org/scorecards/environment/days-epa-air-qualit...
Ships measure fuel in tons per hour. It only takes a few hundred transport ships to put out as much pollution as every car on the planet and there are hundreds of thousands of them with their collective output dwarfing cars and trucks combined by several orders of magnitude.
If we really wanted to cut transportation pollution fast, we'd internationally mandate turbosails on all transport ships as current models cut fuel consumption by 25% or more.
Stepping aside from ships, big rigs are the overwhelmingly biggest NOx contributors (even beating out industrial and power plants).
Stepping back though, transportation in ALL its forms still only contributes around 1/4 of the US greenhouse emissions.
Think about the difference between peeing or not into a clear body of water and a muddy swamp. Either way, you don’t want to drink from the muddy swamp.
I think it's more of a matter of "will" vs "can"
Yes, you can say that increased congestion from single occupancy vehicles leads to a tragedy of the commons for those on buses. This can be addressed by making bus only lanes (and they should be bus only lanes, not bus and taxi lanes)
For the rest of the congestion, there's not much difference between rideshare vehicles and private vehicles. Rideshare vehicles might be empty while looking for passengers (net positive contribution to congestion), but also provide pooling (net negative contribution). Private vehicles also circle blocks looking for parking spaces (net positive contribution).
> For San Francisco traffic congestion increased by 60% between 2010-2016[1]
It's hard to pin this solely on ridesharing though. There have been no lack of road construction projects in the last decade. More recently, the Van Ness work has been an absolute clusterfuck for San Francisco traffic.
[1] - https://sf.curbed.com/2019/1/23/18194612/lyft-uber-tnc-sfmta...
so does private car ownership, private bike ownership and bikesharing.
Private car ownership externalities overlap greatly with ridesharing. The solution here is congestion pricing for all vehicles except public transportation. You tax what you want less of and what causes the most wear on the systems that need to be maintained.
Humans are free to choose the systems that work best for their needs. If we want to people to use public transportation, the solution to that is to make public transportation better than the alternatives, such as providing for bus only lanes and more routes.
There's no better way to burn up al of your free time than by taking public transportation. I've never had the balls to pull out my laptop to try to get some work done...
Even if you had private transportation to nearby public transportation hubs with rides that went greater distances with no/few stops, as a short term solution (similar to private FANG shuttles), you still have a distribution problem on the other side.
Bike use and bike sharing, while decreasing public transit use, have similar positive benefits to public transit use such as reduced congestion, reduced pollution, etc.
In a difference landscape the Uber model might be sustainable, but the middle class is being completely gutted. California especially is headed toward a Hawaii-esque bifurcated economy, comprised of a wealthy minority and a massive underclass of service-industry people catering toward their every want and need.
Wrong. Turns out, people aren't willing to pay that much for people to clean up their streets - only $1-5 on average per job. Yet it takes an hour to clean the street sometimes. That is an abysmal hourly wage, how can you expect desperate impoverished single mothers trying to work 3 jobs to live off of this?? Clean Streets ought to give a living wage and full health benefits to anyone who signs up. Oh, except... just one problem... the 1% transaction fee isn't enough to fund that, and jacking up pricing just means people stop using the app altogether.
So yes, in theory this app is great - if you can restrict its use to only non-desperate people. But desperate people would nevertheless try to make a living on it, and you would get lambasted by human rights activists for exploiting the poor. Sigh, I wish there were a way for things like this to exist.
edit: please don't ever ask me the related dystopian business model generator.
Right, but were they the original target demographic? Just because a platform gets commandeered by desperate people doesn't mean the platform was originally designed to support them.
Uber even has financing options to help drivers buy cars specifically for this job. What type of person buys an entire car to accomplish side hustle or to dally around? The fact that Uber accomodates such a large investment into being a driver speaks towards what their "target demographic" is.
We (society) have traditionally massively underpaid people who are time rich and cash poor, but who have basic life necessities provided outside of their income - teenagers, most obviously, but historically the same applied to middle-class married women (look up "working for pin money").
But that involved discrimination - either only offering these jobs to people who were not relying on them for basic life necessities, or paying people who were actually trying to make a living much more (at least minimum wage, and in some cases far more). That discrimination has usually been illegal, but paying a local teenager a few dollars to mow your lawn (when you would pay a much more substantial fee to a proper lawn-care firm) is the sort of informal small-scale law-breaking that no enforcement body would ever bother with.
But you can't, intrinsically, aggregate this sort of thing. That takes the human being out of the loop, which means there is no one to discriminate. It makes the law-breaking large-scale and formal, rather than small-scale and informal. This happens to all sorts of things - there are plenty of informal payments made to people in exchange for small amounts of their time (lots of us have paid a bit more than the fuel costs for a friend to give us a lift to the airport), but when this starts to scale up (ie Uber), you have to turn it into formal business and employment arrangements, and that changes the nature of the relationship. You can't scale it up without changing it in kind.
I know that a lot of people on HN don't like the idea that there are some things that can only be done one-to-one, personally, and informally, and therefore cannot be automated, done many-to-many, impersonally, and formally. But there are.
For the specific case, surely the solution is to assess how long the job will take, check the minimum wage or living wage, and then aggregate multiple bounties until there's enough to pay for the job to be done.
As for health benefits, the likely approach is something like how SAG health benefits work - you pay a percentage of your income into the plan; if you earn more than $X per year, then you get health benefits. Someone should organise this across all "gig" jobs and employers can then require people working gig jobs to sign up for this (and deduct the percentage at source). That someone would be a labor union, of course.
Could it be that perhaps Uber and Lyft are simply poorly ran organizations who only excel at burning VC money?
Voters in the US also don’t want to pay for any of this.
Hence, the politicians that get elected are ones that give people education via student loans, and healthcare/unemployment benefits tied to employer/employment status. Those politicians get to claim they helped people, and they get to claim they kept taxes low.
The game is to try to reduce your tax burden as much as possible, and don’t slip up and end up in the bottom 3, maybe even 4 income quintiles.
I will say that I recently had to deal with the medical system for a family member, and he was on decent private insurance. We actually would have received better care at a lower cost if he was on Medicare instead. N=1, of course.
I'm pretty sure that Medicare has been shown to be a more effective negotiator than the private insurers and generally operates more efficiently, but I may be misremembering.
Disclaimer that I don't support medicare for all myself, I'd much prefer a model closer to the NHS, with caveats (federal funding, county administration, state oversight).
There is more than enough money to go around, it's that there is a lot of it being wasted. The government and states failed to provide a good taxation and spending model. It's not the issue of the voters not willing to pay for it.
https://www.state.nj.us/dobi/division_insurance/ihcseh/ihcra...
If you see at the bottom, a 60 year old's age rating factor is 2.714 times a 21 year old's. Which means their premium can't exceed 2.714 times a 21 year old. Obviously a 60 year old uses far more healthcare than 2.7 times the healthcare a 21 year old uses, so effectively it's a tax on the 21 year old to pay for the 60 year old's healthcare.
Absolute insanity. Yet changing this at a fundamental level is somehow considered radical, nothing we can do etc., except what every other western country has already done. We keep telling ourselves we have the best medical care in the world, which anyone who has lived outside the US for some time can attest is complete bullshit.
Good paper on the topic - https://link.springer.com/article/10.1057/biosoc.2010.40
I don't know why this isn't illegal. You can go from living comfortably to living in poverty even though you held up your end of the contract except for that last time when you were not even conscious.
It'd like a burger OK, here it is. What is the charge? I'm not sure. I'll send you a bill in 2-32 weeks.
Many months later, he finds out that they later sent two more bills to the address where he lived in middle school, never called him about it, and then referred them to debt collection because of course he hadn't paid them. He found out about this when the debts showed up on his credit monitoring.
Now they're denying that he gave them his current address, despite the fact that he has multiple other bills with earlier dates where the hospital has printed the correct address on them.
tldr: America's medical billing is an absurd shitshow
Except in the US wants to do what "every other western country has already done," which is to use payroll taxes on the middle class to subsidize mandatory health insurance or pay for a state-run system. Nobody in the US is actually serious about universal healthcare, except the folks who want to fix the ACA. Even Sanders promises not to raise taxes on people making below $250,000. If that's the promise, then all the other stuff is just talk, because the revenue can't be there to pay for any of it.
Warren actually got close to a plan for accomplishing universal healthcare without raising middle class taxes, and it only proves what a complete farce that is. It features:
- A wealth tax that goes up to 6%, four times higher than the 1.5% wealth taxes that Sweden and France abandoned (and most OECD countries never had)
- Corporate taxes around 35-39%, higher than Sweden, France, Germany, Denmark, etc.
- Capital gains taxed at the income rate, with a 70% top rate
Each of those policies individually would be outside the mainstream of the OECD. But under Warren's plan, you'd need all of these in combination just to raise half the money needed for Medicare for All.
So Sweden has corporate taxes around 22%, capital gains taxed at a flat 30%, and a top income tax rate of about 52% depending on municipality. It abandoned its wealth tax recently. Under Warren, the United States would have corporate taxes at 35% + the state rate (total 44% in California), a wealth tax going up to 6%, and a top marginal tax rate on capital gains of 70%.
Obviously we'd never do that, which shows you how it was never a serious proposal.
Voters in the US are already paying for healthcare for all, plus they are paying extra to support an entire healthcare insurance industry.
The USA doesn't (generally) let people die if they can't afford healthcare (people may be driven into bankruptcy, but they won't be left to die), so those costs are all getting paid by the public. And it'd be cheaper to pay for preventative care than to wait and pay for care for those that are so sick that they have no choice but to see an expensive doctor.
I've been living in the US for almost 7 years, and this is news to me. As far as I understand, Medicare only applies to people who are 65+ years old, and Medicaid only applies to families with certain income (relative to family size). What did I miss?
> The USA doesn't (generally) let people die if they can't afford healthcare (people may be driven into bankruptcy, but they won't be left to die), so those costs are all getting paid by the public.
As COVID-19 has demonstrated quite effectively, death is not the only outcome to focus on. Also, driving a person into bankruptcy or otherwise ruining their future is not what I would call "healthcare paid for by everyone".
I am sincerely hoping that I have missed something in your arguments.
Instead of waiting for someone with the flu to develop pneumonia and go to the ER because he can't breath, it'd be much cheaper to subsidize his visit to a primary care physician that he can go to before he needs a hospital.
To relate a personal experience, I have a relative that's had drug addiction problems all her life -- a few years back she had a cold or flu, couldn't afford to see a doctor so tried to ride it out at home, fortunately, she called her mom and told her how sick she was. When she didn't respond to the phone the next day, her parents drove across the state to check on her, found her near comatose and called 911. She had some bacterial pneumonia and almost died, she spent 10 days in the hospital, 5 of those days were in the ICU, intubated and in an induced coma. Because she was working and had some moderate income, she had lost her eligibility for state subsidized medical insurance. After taking 6 weeks off work to recover, she of course, lost her job, then she qualified for health care coverage and state disability payments.
The total hospital bill was over $300,000. Since she had no income or assets, the hospital wrote off the entire bill and absorbed the charges.
All of this because the public didn't want to pay $100 for her to see a doctor and get some antibiotics.
I think it's fair of you to point out that there are certain scenarios in which healthcare is not paid for by the person getting it and everyone else ends up paying for it indirectly. I also think it's fair of you to point out that it's handled in such a way that it creates a byzantine system that ends up costing us all a lot more than it should.
But that's a long long way from claiming that "voters in the US are already paying for healthcare for all", in the context of the current discussion. "Voters in the US are paying for a byzantine system that handles extreme cases that happen because of the failure to have a proper healthcare for all" is as far as I could go with your arguments ;)
But the point remains -- voters don't want to pay for it, but they are already paying for it, many just don't realize it because when they pay $500/month for healthcare insurance, they don't see the $900 that their employer is paying or the public subsidies to hospitals.
> Voters in the US also don’t want to pay for any of this.
A wealth tax is pretty popular. And we spend a whole lot in health insurance premiums.
Oh, and we could cut our defense (offense) spending in half and still be spending a good bit more than China.
But Ontario has free public healthcare based on residence status, while Cali doesn't. So a better question might be what is it that US taxes are paying for that are so important (but that the neighbor in the north can do without just fine) that it can't afford healthcare instead?
Discussions about other causes for US taxes to be so high can get very political very quick because the myriad tax deductions available to the asset owning class, as well as the unaccounted for defined benefit / retiree healthcare debt that US governments have at all levels, and then you can get into military spending and so on and so forth.
And despite the low wages both Uber and Lyft continue to operate at a loss! The business model just doesn't work and no amount of softbank cash can change that.
This goes to say that you cannot trust private companies like Lyft for critical services. The government actually has been transparent about this change and Lyft is acting like a spoilt child, not even willing to try the employee route.
Lyft pulling the rug overnight is in bad faith.
Easy to do now, considering the rideshare volumes are probably lower than without SIP.
The California government is the party that's been acting like a brat here. The rideshare drivers of California overwhelmingly didn't want this approach to receiving benefits. Lawmakers got jealous that economic activity was happening in a new way that they couldn't tax and control the way they were used to, and instead of solving problems creatively, attempted to slam a non-nail with a hammer. They were warned in no uncertain terms that it'd hurt.
It is not that lyft is striking, their product and process is not ready yet to do full time employees yet.
The folks I spoke to were all doing hectic work trying to build it out , my understanding is they originally planned to do this by November.
Even if the tech is ready , converting 1000’s to folks full time is ton of government paperwork that is going to take time .
They first have to figure out who wants to be full time and who they want to be retain full time .
It is not like they were given a reasonable 6-12 months to comply and they screwed up . Uber is also in the same boat.
If anyone builds this, there will be no way central planners (I use these two word to remain polite) can stick their nose in the free exchange of money and services between drivers and driven.