California ruling on ride share

[Worldtraveller]

Uber/Lyft and similar services could get around this one of two ways (well, there are way more, but these are probably the easiest):

1. Actually treat the drivers as employees and provide benefits, especially if they are working more than 40 hours/week.

2. Change their service to a subscription/referral that the drivers pay a nominal fee to sign up to. They may or may not get a cut of the ride cost from there on. Then the drivers actually are contractors, free to set their own hours, and all the other attendant responsibilities of being a business owner.

I actually do something similar to the second for an online nationwide tutoring service. It doesn't pay quite as much as I would charge doing my own business (and I used to run a tutoring service), but the net weekly payoff tends to be more because of volume. I'm a contractor, set my own hours, they take care of collecting the finances and I set the rates.

 

[ZiprHead]

Could this be a big reason Uber doesn't make a profit?

Uber co-founder buys record-breaking LA mansion for $72.5m as drivers fight for wages

View attachment 28922

I don’t think so. The house in the picture was Aaron Spelling’s house. I pass it most days. Just around the corner from the Playboy mansion.

Why don't you think that extravagant remuneration which enables a business owner to make such an extravagant purchase would limit the businesses ability to turn a profit?

 

[TSwizzle]

Why don't you think that extravagant remuneration which enables a business owner to make such an extravagant purchase would limit the businesses ability to turn a profit?

I have no idea what Camp's remuneration is from Uber but I do know that Camp was already very wealthy. Uber will not turn a profit unless they put the heavily subsidized fare up. It's all smoke and mirrors just now.

 

[Loren Pechtel]

It’s only when they start running into repair bills in the thousands of dollars will they realize their error. By now it’s too late. The one thing they need to gain and maintain employment is reliable transportation. Now that transportation is not so reliable. It’s been beat up and worn out by bad roads and stop and go traffic. All this and perhaps still a couple years left on the loan.
This is nothing more than people being taken advantage of. Uber is operating a business model with no concern for its workers. It is the worst abuses of capitalism. It deserves to fail.
But fear not. People will still need to get from point A to point B. Something will fill the void. Hopefully something by someone where their moral code does not take a backseat to money. There will be jobs. And the people they did cheer.

Exactly. Uber and Lyft basically turn the value of your car into current income. As a short term expedient it's not that bad, but for anything more than that it's a very bad deal.

 

[Loren Pechtel]

Uber/Lyft and similar services could get around this one of two ways (well, there are way more, but these are probably the easiest):

1. Actually treat the drivers as employees and provide benefits, especially if they are working more than 40 hours/week.

2. Change their service to a subscription/referral that the drivers pay a nominal fee to sign up to. They may or may not get a cut of the ride cost from there on. Then the drivers actually are contractors, free to set their own hours, and all the other attendant responsibilities of being a business owner.

I actually do something similar to the second for an online nationwide tutoring service. It doesn't pay quite as much as I would charge doing my own business (and I used to run a tutoring service), but the net weekly payoff tends to be more because of volume. I'm a contractor, set my own hours, they take care of collecting the finances and I set the rates.

Yeah, this is much more like what a true independent contractor is like.

A percentage is reasonable when the business provides substantial support for your actions, but Uber is basically providing clients and insurance. (And since they're not the ones making claims I'll give you one guess as to what the quality is like.)

 

[TSwizzle]

Well it looks like Uber and Lyft are going to suspend operations in California at midnight tonight.

That was quick, a stay has been granted by the CA appeals court.

Interesting, you can get an Uber/Lyft ride but can't get a haircut at the barber.