Bad Ride: Uber and Lyft vs employer regulation in California

Uber and Lyft seem to redefine the paths they take every time their engine is challenged by external compliances, all in the wrong way. Their most recent manifestation of this strategy was to threaten closure when a two year due California rules compliance directed them to change the status of their drivers to “employees” ceasing the policy of hiring drivers as independent contractors, effectively escaping liability for multitudes of driver-related incidents and also at the same time avoiding putting money into unemployment insurance schemes, two birds with one stone. They were awarded a temporary retrieve under the Government’s policy of a “business-friendly” environment. Maybe we need to rethink when “business-friendly” becomes “worker unfriendly.”

The business models of companies like Uber, Lyft, and Ola (to name a few) rely heavily on baiting the unemployed with the unique attraction of working on their own schedule together with heavy investments on the uncertainty of future tech, resulting in the companies positively bleeding cash especially with the onset of the pandemic and a major decrease in demand.

- Advertisement -

Read Also: TikTok Plans to challenge US orders banning transactions within the app

The Problem

Surely, the pressure seems to be getting into these companies as they are looking into new plans of how to function in a way similar to their old ways, just newly concealed under a prime layer of legal verbosity. A franchise model under which the companies can license their brand names and technology to owners of traditional taxi companies is bringing us back to phase 1.

This is because the companies would still avoid the employment costs and accelerate the process of building a workspace, where the executive and the consumer are the only significant players. The franchise model would involve more costs for the already cash strapped companies and force them to either raise fares or reduce wages,  which nicely tops off the system of companies extending wide control while incurring less and lesser responsibility.

Do you want to publish on Apple News, Google News, and more? Join our writing community, improve your writing skills, and be read by hundreds of thousands around the world!

- Advertisement -

Source: The Wall Street Journal

More from Business – News Landed

+ iOS 14 will cause a 50% drop in Audience Network revenue, Facebook says
+ Judge orders Apple not to block Unreal Engine, but Fortnite is still blocked from the App Store

Popular Stories – News Landed

+ An asteroid will strike Earth right before U.S. Presidential Election Day
+ COVID-19 cases in children rapidly rising in the U.S., new data reveals

Related Stories

Facebook stops wrong claims about fires in the western United States

In a rare move, Facebook says it is taking action against posts that falsely assert wildfires in Oregon have...

“VIVO’s exit isn’t a financial crisis,” says Ganguly

IPL: Following the political issues between India and China, VIVO(a Chinese originated mobile manufacturer) has chosen to give up...

Featured Stories

Biden, Harris inaugurated as President and Vice President of the United States of America

On January 20, 2021, on the steps of the United States Capitol, history was made. Shortly before Noon EST,...

Joe Biden’s US$1.9 trillion plan – What does it mean to the world?

On Thursday (January 14), incoming President Joe Biden revealed his administration's US$1.9 trillion stimulus package that aims to combat...

Our Forests Will Reach Their Climate Tipping Point Decades Before the End of This Century

Recent observational data studies confirm that we are much closer to the temperature tipping point for forest and terrestrial...

Curfews sweep Europe to tackle rising COVID-19 cases

Nine months from the initial lockdowns, Europe grapples with record coronavirus cases. It comes as dozens of more contagious...

Endangered Indian rhinoceros calf born in Poland zoo

An endangered Indian Rhinoceros calf was born last week at Poland's Wroclaw Zoo. The female calf is said to...

Cancer cells hibernate like a bear to tackle chemotherapy

Hibernation is a process where animals go to sleep during an adverse environment. Precisely when animals don't get food,...

Comment Below

Facebook stops wrong claims about fires in the western United States

In a rare move, Facebook says it is taking action against posts that falsely assert wildfires in Oregon have...

“VIVO’s exit isn’t a financial crisis,” says Ganguly

IPL: Following the political issues between India and China, VIVO(a Chinese originated mobile manufacturer) has chosen to give up...