6 ms·
The consequences of this ruling are probably not going to be known for a while. This is certainly bad for Uber & Lyft insofar as it will greatly increase their
by abvdasker 6y ago
The consequences of this ruling are probably not going to be known for a while. This is certainly bad for Uber & Lyft insofar as it will greatly increase their operating costs. The question is what effect the ruling will have on drivers.
Uber is not a profitable company with fat margins like Google, Facebook, Amazon, Apple or Netflix. I don't see any way for Uber to absorb the increased costs that come with full employment without reducing the number of drivers and increasing the cost of rides in California.
The change in employment classification means that drivers will no longer be able to choose when they work. Uber will choose when they work, and for how long. The barrier to becoming an Uber driver will increase. Currently, in most cities it's possible to sign up to drive entirely online and basically just requires a license and a completed background check. Going forward people who want to drive for Uber will have to interview like any other job, probably in-person with a resume, and jump through the many hoops which that process entails.
My guess is that for new drivers who can pass the interview and existing full-time drivers who don't get laid off this will bring a big improvement in quality of life and provide some much-needed financial security and benefits. The rest will be out of a job.
I think it's unfortunate that some kind of compromise couldn't be reached which would have provided some economic security for these workers while accounting for the real differences between gig work and regular employment.
- octodog 6y agoThe whole point is that Uber isn't actually treating its drivers like contractors. Any theoretical benefit to being a contractor is not really relevant if they don't have those rights in practice.
- xmprt 6y agoI'm not sure you can claim that with confidence if you haven't driven with Uber before. Many drivers hold the opposite opinion as well and prefer to keep their job and only drive whenever they're free.
- neuroanalysis 6y agoProfitability should have no bearing on whether drivers are classified as employees or contractors. If these companies can’t turn a profit while complying with the law then they don’t have a viable business model. That is entirely their problem. Furthermore, the assumptions you make regarding future hiring practices are unfounded. Nothing stipulates that resumes or interviews, let alone in person, would be required to extend employment.
- Mirioron 6y agoThere might be no stipulations, but do you really expect Uber to be completely different to every other company when hiring actual employees? People that you are legally liable for? >If these companies can’t turn a profit while complying with the law then they don’t have a viable business model. That is entirely their problem. But let's completely ignore the part where companies lobby for laws that protect their market. Can't wait to go back to the old taxis.
- deleted 6y ago[deleted]
- WC3w6pXxgGd 6y ago> If these companies can’t turn a profit while complying with the law then they don’t have a viable business model Are you seriously telling me that if people don't interact freely in the way bureaucrats want them to interact, then those people should, by law, not be allowed to interact? Big Brother knows best, huh.
- jojobas 6y ago>drivers will no longer be able to choose when they work Why? Uber is still free to let them choose if they choose so. >Going forward people who want to drive for Uber will have to interview like any other job Why? Uber would be free to hire without interview. >this will bring a big improvement in quality of life That's the point. >The rest will be out of a job It was deemed that this kind of a job is not worth having people in, often being below minimum wage and with no protection. In a bit of hyperbole, abolition took jobs from slaves as well.
- maxk42 6y agoTo answer your first "Why?" it's because employees have to be paid much more when working over 40 hours / week. Drivers will no longer be able to work an extra 5 hours when they need extra money: They'll have to have a second job. Similarly, there are certain minimum costs associated with each employee above and beyond the costs of a contractor. This may mean Uber is forced to favor drivers who commit to a certain minimum of hours per week, ridding themselves of the "before and after work" driver crowd. The net effect of these two forces means Uber will just be another part-to-full-time job.
- jojobas 6y agoBasically you're arguing that the race to the bottoms is good for everyone involved. From a country that has hard fought-for USD16/hour minimum wage, paid 10 sick leave and 20 annual leave days per year, this doesn't appear true at all.
- deleted 6y ago[deleted]
- LudwigNagasena 6y agoHow does allowing flexible work arrangement imply “race to the bottom”?
- jojobas 6y ago
- satya71 6y agoI think Uber already chooses when they work and for how long. Uber will have to cap the hours at 8 hrs a day to save on overtime. But the "new employees" can work multiple jobs if they want. Are there employment laws I'm not aware of that require "interviews"? Most fast food works can become employees by just walking in the door, I think.
- nostrebored 6y agoThis is just untrue. Drivers are free to choose when they want to drive.
- jojobas 6y agoSure, but Uber varies rates so they want to drive when Uber needs them.
- nemothekid 6y agoHow is that any different from any other contracting job. If I'm a designer a client may pay me more to finish a job now rather than in 10 days.
- satya71 6y agoDoesn’t Uber decide who to route which ride?