Uber CEO says its service will probably
shut down temporarily in California if it’s
forced to classify drivers as employees
CNBC,
by
Lauren Feiner
Original Article
Posted By: NorthernDog,
8/12/2020 1:46:43 PM
Uber would likely shut down temporarily for several months if a court does not overturn a recent ruling requiring it to classify its drivers as full-time employees, CEO Dara Khosrowshahi said in an interview with Stephanie Ruhle Wednesday on MSNBC. “If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” Khosrowshahi said. Uber and rival Lyft both have about a week left to appeal a preliminary injunction granted by a California judge on Monday that will prohibit the companies from continuing to classify their drivers as independent
Reply 1 - Posted by:
msjena 8/12/2020 2:04:09 PM (No. 507641)
Why do drivers want to be classified as employees? As independent contractors they get tax deductions for health insurance and business expenses that are not available to employees. ICs also set their own hours. Unless an employer is offering lots of benefits, I think it's better to be an IC.
11 people like this.
Reply 2 - Posted by:
GoodDeal 8/12/2020 2:07:35 PM (No. 507643)
The government forcing employers to change their business model in an effort to "protect" workers. Well, they will protect them so much that the company will fold up the card table and tent and haul A out of state leaving drivers with no job. Thanks for the protection Goobernator Newsolinni. I used to drive Uber & Lyft but quit over a year ago after five years on the road. I quit because there was no profit in it. I was a highly rated driver, did thousands of rides, and was just pushing dollars through my gas tank and suffering increase accelerated vehicle depreciation due to excessive high mileage, increased insurance costs as well as increased vehicle maintenance costs and tire and brake replacement. Plus the big kicker was pretty much all riders NEVER TIPPED me. Buncha cheapasses. I would always get the excuse oh...I don't have any cash on me...or...I will tip you on the app... bullcrap. Lied to and stiffed. I finally had enough of getting a ride request and driving 15-20 minutes through traffic to pick them up only to take them on a one mile or less ride for another 15-20 minutes through traffic, and taking home $3.20 and no tip. F all ya all! I'm over it! Not my problem any more!
14 people like this.
Reply 3 - Posted by:
reefdiver 8/12/2020 2:10:32 PM (No. 507648)
Can we classify Congress members as employees of the country? Of course not.
11 people like this.
Reply 4 - Posted by:
stablemoney 8/12/2020 2:11:19 PM (No. 507649)
The taxi companies want Uber out of business, and are behind many of these suits.
14 people like this.
Reply 5 - Posted by:
jimincalif 8/12/2020 2:18:52 PM (No. 507659)
I've used Uber just twice in my life, but it sure beats the heck out of trying to get a taxi. Seems to me ceasing operations in California might be a good strategic move for Uber and Lyft. Maybe wait a bit to let travel pick up again. Let people see what their government has done for them. "Democracy is the theory that the common people know what they want, and deserve to get it good and hard." - H. L. Mencken
3 people like this.
Reply 6 - Posted by:
earlybird 8/12/2020 2:23:37 PM (No. 507666)
Uber is a crap shoot, but taxis in our area (where most have their own cars) are a disaster. Third world vehicles - dirty, smelly - with drivers to match. Had to take one home from ER at 1:30 one morning. Was so very glad to get home, even though it was just a few miles...
6 people like this.
Reply 7 - Posted by:
snowoutlaw 8/12/2020 2:29:07 PM (No. 507669)
The law (SB5) was passed as special favor to unions, mostly taxis unions. Also as as side benefit will not permit parents from hiring tutors to help out with the forced homeschooling since the teacher's unions won't let schools re-open. The law seems to be doing its job.
6 people like this.
Reply 8 - Posted by:
WestCoast 8/12/2020 2:29:25 PM (No. 507671)
Wife and I have used uber a few times on 40 plus miles runs to airport, cheaper than a shuttle bus. The cars have been clean, drivers usually 3rd world but friendly and polite. Will probably use again. (#2, should have had my wife and me for fares, tip has usually been about $20.
6 people like this.
Reply 9 - Posted by:
Nimby 8/12/2020 2:32:37 PM (No. 507678)
Keep electing Democrats California!!
2 people like this.
Reply 10 - Posted by:
hotcorner 8/12/2020 2:36:04 PM (No. 507683)
Dems want you in a big company that they can unionize and extract dues from you for their political campaigns. That's it. All year they have been destroying entrepreneurs and small businesses who do not unionize and do not vote for Democrats. Get it everybody.
7 people like this.
Reply 11 - Posted by:
Videodrone 8/12/2020 2:41:26 PM (No. 507688)
My son-in-law has been supporting themselves as they "finish"(?) graduate degrees with Uber & Lyft - now what?
3 people like this.
Reply 12 - Posted by:
Rather Read 8/12/2020 2:57:05 PM (No. 507702)
I've used Uber twice and had good experiences. I do tip and I think it's a great service. The California lawmakers seem determined to drive businesses out of their state. I only hope they don't come here. Too often the voters elect politicians who got them into trouble in the first place.
2 people like this.
Reply 13 - Posted by:
jimincalif 8/12/2020 3:08:32 PM (No. 507713)
Good opportunity to point out that Kamala Harris will take California government to the national level!
5 people like this.
Reply 14 - Posted by:
earlybird 8/12/2020 3:18:52 PM (No. 507717)
Its not the drivers who want to be classified as employees. This is part of something the Dem state legislature pulled off that hit all freelance independent contractors.
The operative word in the headline is “temporarily”. The judge's injunction has been challenged by Uber. Awaiting another court’s decision on the injunction’s requirement.
More strikes against the Dems who monopolize the state’s government because the Dems have more registered voters. I keep wondering why the large chunk of No Party Preference registered voters (about 1/3 now) don’t swing right rather than left...
4 people like this.
Reply 15 - Posted by:
StrikingViking 8/12/2020 3:25:51 PM (No. 507722)
Sorry, Uber. Kalifornia doesn't want any of its citizen/inmates to be "independent."
5 people like this.
Reply 16 - Posted by:
Lawsy0 8/12/2020 3:28:12 PM (No. 507723)
Same probably goes for Lyft and also those horrid little scooters big cities are so fond of. Lyft seems the better deal here where I live. Uber is more interested in the big bucks from Music City visitors.
2 people like this.
Reply 17 - Posted by:
DVC 8/12/2020 3:41:43 PM (No. 507733)
Govenment working at the behest of unions to destroy a company.
Personally, I have never used uber, and never will, but it should be a free market. I had plenty of this garbage in the former soviet union countries, and didn't much like it there. It was not as organized - raise your arm and hail....whoever and then haggle over a price. No thanks. I'll rent a car and drive myself, always.
2 people like this.
Reply 18 - Posted by:
RuckusTom 8/12/2020 3:45:02 PM (No. 507734)
I love modern journalism where "temporarily" is "several months". When I think of "temporarily" I think an hour or two or a most 2 or 3 days. Guess I'm getting old.
2 people like this.
Reply 19 - Posted by:
Historybuff 8/12/2020 3:46:05 PM (No. 507735)
If they would only repeal the law of unintended consequences.
4 people like this.
Reply 20 - Posted by:
snapper451 8/12/2020 5:29:15 PM (No. 507810)
This is a big deal and Dementia Joe has already sold his soul to the unions to take this nationwide, if he wins. This should be a major issue in the election because in CA if you hire a tutor for your kids it has to be reported to the state by both the tutor and parents paying the tutor so CA unemployment taxes, disability, etc. are paid. If not, you will be hunted down and fined. It essentially wipes out all independent contractors so people will have to join unions. Pay attention or it will become national law under Democrat communists.
3 people like this.
Reply 21 - Posted by:
DVC 8/12/2020 6:55:55 PM (No. 507868)
Nothing unintended about, #19.
0 people like this.
Reply 22 - Posted by:
DEnforcer 8/12/2020 7:59:19 PM (No. 507907)
The state that nurtured the gig economy will now work to kill it. Silicon valley wake up!
0 people like this.
Gawd forbid anyone prospers unless they work on Capitol Hill. I had a different experience. My insurer provides medical rides (from H-ll) and sometimes use Uber and Lyft. A young guy picked me up at the hospital once and we were talking about him driving his mother's car. Mom never told the insurance company, so I said "Tell mom, you have an accident in this car and a rider is injured, they own her home"
1 person likes this.
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Exhibit A of a company being destroyed by the government.