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 ...
1. He had to provide services to a minimum of three different clients in any given tax year.
2. If he did any work at a client's place of business, he had to pay the client a nominal fee for the use of the client's facilities and equipment.
I'm not sure how this would apply to an Uber driver, but I always kept it in mind whenever these discussions come up.
Can you say, “OBAMACARE”?
and are you okay with all of that?
Correct and exactly.
I really don’t understand the ignorant rush to call services like this ‘free market’.
The correct analogy is doing business in CA and not collecting or paying sales tax. THAT is what Uber does in EVERY one of the markets it enters by violating various municipalities’ regulations: They seek to operate under their own rules and whine about it, negotiating out of court settlements and, in rare cases, walking away from markets. It ain’t rocket science. Eventually services like this may be the norm, but building a business model on the basis of predicted litigation is just plain stupid (as is defending it, imho).
that’s a very frightened definition of contractor.
wow, did you just come over from Huff Post?
Very risky stock.
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”
Thanks for interjecting some first-hand knowledge into this thread. This same business model is used in many occupations. For example, hair stylists often rent a booth from the salon owner. The salon specifies the price (sans tip) and hours of operation, and provides the space, utilities, advertising, a phone line for appointments, and (sometimes) equipment and supplies. Real estate agents are also often independent contractors, splitting commissions with a broker in exchange for office space, access to the Multiple Listing Service, advertising, yard signs, etc.
It’s hard to find a tech entrepreneur in California that doesn’t support high taxes, oppressive regulations and silly social causes.
I say Uber got what it deserves.
Does Cali get anything right anymore?
The Uber drivers I've encountered typically have been driving for them for one to two years. Some used to work for the monopoly licensed tax companies, and finally got fed up with the working conditions, hours, and pay. As an occasional customer, I have been much more satisfied with Uber than with the licensed taxis. In big cities, the monopoly taxi companies are losing drivers to Uber every week. Very few Uber drivers are leaving to sign up with the monopolists.
Unionize it and the State needs to collect all associated payroll taxes.
You mean the state of CA hasn’t passed that yet?
I said the exact thing about Etsy and Amazon too.
Until the IRS says so it ain’t so... Uber drivers pick their own hours and can accept or decline individual assignments, Uber handles the dispatching through their application which chooses the closest driver with a vehicle meeting the clients demands and collects the fee for the ride.
If brick and mortar stores are required to collect sales taxes, then so should internet companies. If taxi drivers have to meet some minimum level of certification then so should Uber drivers.
A lot of these "New Economy" ideas are based on business models that only make sense because they don't have to pay the same taxes or abide by the same regulations as similar "Old Economy" businesses.
Everything should be on equal ground.
Besides, most of these "New Economy" businesses are run by lefties. Do you really want lefties to get an unfair advantage in the free market?
so you are a government compliance dweeb.
You realize your “rules based” philosophy is a huge innovation killer and most of these rules are put in place to keep competition out. Apparently you are an economic big government liberal.
you’re a compliance dweeb....what can I say. I wrote an entire book about the abuses of bureaucracies....meanwhile, you embrace them, bless your little heart.
you’re a compliance dweeb....what can I say. I wrote an entire book about the abuses of bureaucracies....meanwhile, you embrace them, bless your little heart.
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