Posted on 06/17/2015 12:09:15 PM PDT by BenLurkin
As it stands now, Uber employs its drivers as third-party contractors, operating as a logistics company that provides access to customer demand and directions, transactions, etc. for the drivers. Uber has argued repeatedly in various courts that it is not a transportation or taxi company, but rather a software platform that matches customer demand with supply.
This ruling changes all that, turning Uber into a transportation startup instead of a logistics software company. That puts the company in a position to face a number of legal obstacles, as well as rising costs of employing those drivers directly and offering them benefits, etc.
As BI points out, one of Uber’s main costs is its full-time employees that work out of Uber corporate offices. If Uber drivers are deemed employees, the business model shifts drastically.
Uber is said to have more than a million drivers using the platform across the globe.
(Excerpt) Read more at techcrunch.com ...
They’ve been advertising like crazy-mad here in, ‘The People’s Republik of Madistan’ for drivers to sign up.
Probably not after today, though. ;)
Socialism kills opportunity, progress, growth, novelty and lots more, with often insurmountsble friction. A perfect illustration, this.
What army does the California Labor Commission have? Let them try to enforce outside of California.
California wants to kill as many businesses as it can.
Gotta unionize it, dontcha know
By that logic, everyone who sells on eBay is a sales person employed by eBay.
Exactly. It was the cab companies who basically have monopolies who pushed this ruling. They don’t want any competition.
I’m sure Yellow Cab greased the skids on this ruling.
BAM. Great analogy. I struggled to find an apples-to-apples comparison.
A contractor has the option to decline work and does not take supervision from the contratee. Providing uber is just posting rides and the driver is under no obligation to respond, they are not employees. This is per IRS guidelines.
I’m sure that Texas would welcome Uber’s corporate relocation to, say, Austin. . .
I worked in China a few years ago
Quite honestly, I don’t see a lot of difference between their government bureaucracy’s regulation of business, and our own. Both have many numerous government organs who feel they have the right to turn your business on its head, both create similar obstacles, and both have the same inherent risk of unpredictable, unexpected, random interference or change. China is becoming more capitalistic, while the USA becomes more socialistic and statist. We are meeting them in the middle.
Obviously, other aspects of their society are very different.
“without drivers such as the Plaintiff defendants business would not exist”.
Hmmm...without customers, vendors, the internet - any number of things then defendants business would not exist.
Also Microsoft got successfully sued for employing contractors over extended periods of time (years in some cases). The courts ruled that those contractors were in reality employees and should be treated as such.
If certain drivers work for Uber over an extended period of time, they might come under the same ruling as contractors that really should be treated as employees.
As I've said here many times, the Uber business model only works because it's built on drivers and customers who haven't figured out the real costs of the services involved.
Yellow cab drivers in NYC are independent contractors.
When I drove we leased a cab for a 12 hour shift.
Didn’t even get a 1099 form, it was all cash and the drivers paid the company for use of the vehicle,, the company paid us nothing.
No more Uber in Californicatia
California Uber Alles.
This is a bit complicated and beyond engaging a few 1099 contractors here or there. Also, Uber is, if I recall correctly, mostly treating them as employees, setting terms, providing insurance, bonding, etc. They present themselves as Uber representatives, not as individuals. On eBay, by comparison, people are posting just like on Craigslist. Both very different, very independent business models. Uber should grow up and treat its workers as employees.
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