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Uber Likely To Pause California Operations


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2020 Aug 12, 5:59pm   3,634 views  63 comments

by Patrick   ➕follow (55)   💰tip   ignore  

https://www.thesfnews.com/uber-likely-to-pause-california-operations/63262

SAN FRANCISCO—Uber CEO Dara Khosrowshahi said the company is likely to shut down temporarily for a few months in California if a new court ruling stating they must classify all of their drivers as full-time employees is not overruled.

On Monday Uber and Lyft, both modern, popular choices for transportation for the public, were ordered by a California judge to brand all of their drivers as full-time employees of their companies, while up until now they have been considered independent contractors.

“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 told MSNBC Wednesday morning.

The ruling made by San Francisco Superior Court Judge Ethan P. Schulman will not go into effect immediately, as both companies have stated they will be appealing to a higher court in hopes of overturning Schulman’s verdict.


Meh, OK with with me. Go ahead and shut down, Uber.

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1   GNL   2020 Aug 12, 6:53pm  

I'd like to see some kind of hero emerge for labor. Labor has been getting fucked for a long time.
2   FortwayeAsFuckJoeBiden   2020 Aug 12, 7:06pm  

Start your own taxi service. Now that fucking taxi companies can’t racket “fees” to become a driver.

I hated taxi companies, they really kept a monopoly for a long time.
3   ForcedTQ   2020 Aug 12, 7:13pm  

AB5 is about as anti labor as you can get, just like the minimum wage. These Marxist fucktards don’t understand that all they are doing is putting many people OUT of work, not raising the standard of living for those people. Time to put the Marxist fucktards out of work!

Uber shitting on the CA Gov is a start. If a new company can make this business model work under AB5 REGULATION then have at it.
4   RWSGFY   2020 Aug 12, 7:20pm  

Can they survive w/o CA market?
5   ForcedTQ   2020 Aug 12, 7:34pm  

FuckCCP89 says
Can they survive w/o CA market?


They have about fuck all for overhead as the whole thing is a software system for transactions and networking people together for efficient means of transport.
6   RWSGFY   2020 Aug 12, 7:41pm  

ForcedTQ says
FuckCCP89 says
Can they survive w/o CA market?


They have about fuck all for overhead as the whole thing is a software system for transactions and networking people together for efficient means of transport.


Right. Except in some markets they own the cars.
7   Onvacation   2020 Aug 12, 9:00pm  

They can move their HQ out of San Francisco.
8   latitude38   2020 Aug 12, 10:44pm  

The judges ruling is a job killing act that hurts more than it helps drivers .I ride Uber probably about 4 x’s a month It’s usually on time ,efficient, and generally cheaper .Most drivers I talk to ,use Uber as a supplement to their income i.e., students trying to keep their costs down ,retirees who could use the extra bucks , unemployed and seasonal workers , many of whom drive when they want to .There either has to be a new classification since Uber can’t currently offer benefits that without risking their employees’ independent-contractor status.of which the majority in talking to prefer to be independent. Since Uber has been in business Ca.DUI’s have dropped significantly.Most people won’t wait for yellow /green /what have you taxis to take their sweet time getting to you while charging you an astronomical amount .The same goes for travelers if the cost goes up much higher than people will opt for short or long term parking creating a long jam both on the freeway as well as parking lots . Drunks will risk the chance of driving home There as to be a better way to classify gig workers
9   latitude38   2020 Aug 12, 11:02pm  

With so many app based and delivery services that are being offered , perhaps AB 22 will be the answer for drivers to act as independent contractors, thus saving thousands of jobs while making our lives easier and convenient .
https://yeson22.com/?gclid=CjwKCAjwps75BRAcEiwAEiACMeaWGG7NCK_2SY8oXvWnkjLCicHJZiEQyI9axyMlowZfgvxpqIM6PxoCUJUQAvD_BwE
10   Booger   2020 Aug 13, 4:20am  

Fuck California
11   exfatguy   2020 Aug 13, 11:41am  

But do the drivers really want to be full-time? I know I wouldn't. Having the option to go on and off as I please would be a major attraction to be a driver. If you go full-time then the company is in charge of your time. No thanks.
12   Eric Holder   2020 Aug 13, 12:17pm  

exfatguy says
But do the drivers really want to be full-time?


If nobody wants to be a full-time driver, what's the problem? It's not like they can force people to work for them full-time.
13   socal2   2020 Aug 13, 12:30pm  

Eric Holder says
If nobody wants to be a full-time driver, what's the problem? It's not like they can force people to work for them full-time.





There was no problem until California Democrats beholden to our corrupt unions got involved and fucked everything up for gig and contract workers.
14   Eric Holder   2020 Aug 13, 12:45pm  

socal2 says
Eric Holder says
If nobody wants to be a full-time driver, what's the problem? It's not like they can force people to work for them full-time.





There was no problem until California Democrats beholden to our corrupt unions got involved and fucked everything up for gig and contract workers.


I understand, but even now: why is this a problem if NOBODY would take a full-time position there? Also, they can offer a minimum-wage full-time position with mandatory hours and mileage and assign these to the dog hours and crappy locations. The rest of the drivers can be part-time and be paid using the current model.
15   socal2   2020 Aug 13, 12:55pm  

Eric Holder says
I understand, but even now: why is this a problem if NOBODY would take a full-time position there? Also, they can offer a minimum-wage full-time position with mandatory hours and mileage and assign these to the dog hours and crappy locations. The rest of the drivers can be part-time and be paid using the current model.


It is my understanding that even if they are "part-time", UBER would have to treat them as employees (not contractors) and provide benefits.
16   RWSGFY   2020 Aug 13, 1:31pm  

socal2 says
It is my understanding that even if they are "part-time", UBER would have to treat them as employees (not contractors) and provide benefits.


Why? Walmart doesn't.
17   socal2   2020 Aug 13, 2:37pm  

FuckCCP89 says
Why? Walmart doesn't.


According to this link, Walmart provides some benefits to their part-time workers too.

https://corporate.walmart.com/our-story/working-at-walmart

I have some part-time people working in my group and they are provided sick days, holidays and some vacation. Not as much as full-time employees - but it is not nothing. I have to add 43% for every dollar of labor to cover benefits for my full time employees, I have to factor in about 25% for my part time peeps.
18   Misc   2020 Aug 13, 2:41pm  

It comes down to Uber/Lyft having to pay social security and medicare taxes, as well as contributing to California's unemployment fund.
19   socal2   2020 Aug 13, 3:01pm  

Misc says
It comes down to Uber/Lyft having to pay social security and medicare taxes, as well as contributing to California's unemployment fund.


In other words, California customers will have to pay more for Uber rides to pay higher taxes.
20   Misc   2020 Aug 13, 8:32pm  

socal2 says
Misc says
It comes down to Uber/Lyft having to pay social security and medicare taxes, as well as contributing to California's unemployment fund.


In other words, California customers will have to pay more for Uber rides to pay higher taxes.


But to make up for it they will lower the driver's pay.
21   latitude38   2020 Aug 13, 9:10pm  

Misc says
It comes down to Uber/Lyft having to pay social security and medicare taxes, as well as contributing to California's unemployment fund.


In other words, California customers will have to pay more for Uber rides to pay higher taxes.


But to make up for it they will lower the driver's pay.

Bingo ! Nailed it
22   just_passing_through   2020 Aug 13, 9:17pm  

That's exactly what will happen and we'll have way less drivers. Also parking lots will fill up again and DUIs will go up as well.

California government are lower than whale shit. They should really do us all a favor and just kill themselves.


This affects so many other 1099 workers too like truck drivers. On our way to becoming Calisomalia.
23   SunnyvaleCA   2020 Aug 13, 10:44pm  

WineHorror1 says
I'd like to see some kind of hero emerge for labor. Labor has been getting fucked for a long time.
His name is Donald Trump. Just like Cesar Chavez, Trump wants to limit unskilled labor from entering the country, thus helping out the existing US citizens who are trying to get off the bottom rung.
24   HeadSet   2020 Aug 14, 3:21pm  

ForcedTQ says
FuckCCP89 says
Can they survive w/o CA market?


They have about fuck all for overhead as the whole thing is a software system for transactions and networking people together for efficient means of transport.


Then why are both Uber and Lyft hemorrhaging money? This is why I though the "self drive" is a joke. Uber cannot make money now when they have passed the costs of buying, maintaining, cleaning, gas, taxes, and insuring the car onto the driver, so how can they make money when Uber must buy the $100k self diving car, plus cover all the maintenance. fuel, and insurance costs? Cars that also need to be stored, inspected, cleaned, and taxed.
25   Shaman   2020 Aug 14, 3:28pm  

HeadSet says

Then why are both Uber and Lyft hemorrhaging money


There’s this little thing called the pandemic. It’s been absolutely terrible for bar hoppers and airport travelers. That’s got to be at least half of uber business.
26   Eric Holder   2020 Aug 14, 4:03pm  

Shaman says
HeadSet says

Then why are both Uber and Lyft hemorrhaging money


There’s this little thing called the pandemic. It’s been absolutely terrible for bar hoppers and airport travelers. That’s got to be at least half of uber business.


Xcept they weren't profitable before the Wuhan scare either.
27   HeadSet   2020 Aug 14, 5:38pm  

Shaman says
HeadSet says

Then why are both Uber and Lyft hemorrhaging money


There’s this little thing called the pandemic. It’s been absolutely terrible for bar hoppers and airport travelers. That’s got to be at least half of uber business.


Nice snark, but Uber and Lyft have been losing money from the start. Every year they make claimed that the next year is when they would turn the corner. Too bad if you were one of those who bought the Uber IPO at around $60.
28   B.A.C.A.H.   2020 Aug 15, 10:39am  

This is hilarious. Uber dotcom hipster types not flourishing.

In the day when I was backpacking in a "second world" place, a local person I was supposed to meet up with told me to hitch a ride anywhere, just flag down a vehicle heading your direction and they'll give you a lift for "about a dollar".

Sure enough that worked. No need for hipster apps.
29   Patrick   2020 Aug 15, 10:46am  

I hitchhiked across Europe in college. It worked reasonably well, though it retrospect it was somewhat dangerous. One you're in someone's car, they have a lot of power over you.

There was a definite hierarchy to getting picked up. Easiest was lone girl, then multiple girls, then mixed, then lone guy, then group of guys.

The people giving rides also correctly perceived that it might not be safe for them to pick up multiple guys, since a group of guys could probably rob them and maybe take the car.

A lone girl would be insane to get into strangers' cars.
30   Automan Empire   2020 Aug 15, 10:55am  

Patrick says
There was a definite hierarchy to getting picked up. Easiest was lone girl,


From what I've heard, pulling over for "lone girl" makes "sketch boyfriend" appear seemingly out of nowhere.
31   Patrick   2020 Aug 15, 10:56am  

Yes, that was a common technique. Guy hides while girl flags down ride, then guy pops up and the couple counts on social pressure to get the driver not to change his mind.

Bait-and-switch. Used in retail all the time.
32   Patrick   2020 Aug 15, 10:58am  

My own routine evolved to where I would put up praying hands, then cross myself in the Catholic fashion but end it with my thumb out.

At least it usually got a laugh.
33   RWSGFY   2020 Aug 15, 11:00am  

socal2 says
FuckCCP89 says
Why? Walmart doesn't.


According to this link, Walmart provides some benefits to their part-time workers too.


I guess I fell a victim to propaganda.
34   just_passing_through   2020 Aug 15, 11:07am  

HeadSet says
Shaman says
HeadSet says

Then why are both Uber and Lyft hemorrhaging money


There’s this little thing called the pandemic. It’s been absolutely terrible for bar hoppers and airport travelers. That’s got to be at least half of uber business.


Nice snark, but Uber and Lyft have been losing money from the start. Every year they make claimed that the next year is when they would turn the corner. Too bad if you were one of those who bought the Uber IPO at around $60.


I think you're both right. Sure has been convenient while it lasted. Another reason to leave CA.
35   SunnyvaleCA   2020 Aug 16, 1:26pm  

If anything, though, all this points out how screwed up the conventional taxi "market" is. Expensive rides, lousy vehicles, and downright rude drivers — even at 2x the current price, Uber would be preferable.
36   Patrick   2020 Aug 20, 5:46pm  

https://techcrunch.com/2020/08/20/lyft-is-suspending-rideshare-operations-in-california/

Lyft is planning to suspend its ridesharing operations in California beginning tonight at 11:59 pm PT, unless it receives a stay from the Court of Appeals today.


I think they did receive the stay.
38   Ceffer   2020 Aug 20, 10:58pm  

Only real issue is the withholding tax grab by the state. They already had taxis by the nuts with regulations, fees and taxes. Uber and Lyft bypassed all that with 1099 status for drivers.

California is going to be pursuing any revenue stream it can nail down to shore up its deficits and the years of public service unions, fiscal corruption and waste. It seems that the rich are starting to bail. As they bail, California is trying to tack on its 'wealth tax' on those with over 30 million in net worth to skin them at the exit gates, and they are trying to increase the maximum state tax (already the highest in the nation) rate by 3 percent.

Is there anything guaranteed to complete the death spiral of California into a two class system of uber wealthy and welfare suckers? Only, the wealthy always have the option to leave, and then California is left with all those hungry voter mouths to feed from dwindling assets.

It literally is running out of other people's money.
39   HeadSet   2020 Aug 21, 7:50am  

Only real issue is the withholding tax grab by the state. They already had taxis by the nuts with regulations, fees and taxes. Uber and Lyft bypassed all that with 1099 status for drivers.

Actually, Taxi Drivers are typically lessees that are 1099 for credit card and voucher payments. What Uber/Lyft did was bypass all the LOCAL laws that apply to taxis such as regulated fares, mandatory service areas and times, handicap vehicles, full time commercial insurance, and so on. Although in a few places taxi drivers own their own cabs and pay a fee to rent a medallion and get dispatched jobs, most rent a cab from the local cab company. I believe that as soon as the AB5 type laws are finished forcing Uber/Lyft to make drivers employees, Taxi companies will be next.
40   HeadSet   2020 Aug 21, 7:52am  

And it probably would violate the interstate commerce clause just like when they tried to tax retirement income of retirees who left the state. The courts shot that down.

I know CA tried to tax a portion of military retirement based on time stationed in CA, but was CA prohibited from taxing CA government retirees that moved out of state?

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