In Historic Ultimatum: Uber Threatens To Shut Down California Business If Appeal Isn't Approved

Fuck Uber. It’s time to let it die and bring back local taxi companies.

The issue is the State of California has no business interfering in a contract between businesses and independent contractors.

Can you imagine?

A state government telling you you can't hire contractors?

In one of the most daring - if seemingly inevitable - ultimatums issued by a corporation facing a damaging legal action, Uber CEO Dara Khosroshahi has just threatened for the first time publicly to shut down its California business if its appeal of a judge's ruling in a case over a recent California law is rejected.

This is not good for shareholders, but the company claims it has no choice, since running the business with all drivers as full-time employees would lead to an impossible hike in fees, likely rending the business uncompetitive and unprofitable. California is the largest state in the country as well as Uber's home state, and San Francisco and LA are two of Uber's biggest markets worldwide.

As we reported yesterday, Uber has warned that it may need to hike prices up to 111% after a San Francisco judge ruled on Monday that the ride-sharing company, as well as its competitor Lyft, must classify its drivers as employees, a move which will disproportionately impact drivers from low-income backgrounds who don't see driving as a full-time job, but rather a flexible way to earn some money on their own terms.

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Uber is bluffing.

They know they can't survive if they had to compete on the same footing as actual taxi companies.

Their business model involves shifting costs unfairly onto the employees. While the executives make themselves rich on stock options.

Fuck them.

I hope they go under.

SO... they classified people that work for a company as workers so the company actually has to pay them which makes said company not as profitable.

Loophole closed. What's the issue?

and for anyone that still thinks we have a "free market"...I give you California.

Drivers are not forced to work for Uber. They can choose to sell pencils if they want to make a few extra dollars. They choose to drive for Uber because it's easy and the money isn't bad for a few hours a week.

A real free market has built in self correcting mechanisms. If the drivers are not making enough money, they don't drive so the company will have to pay more and then charge more.... thus reducing their competitiveness...

and then someone else will come along with a better plan and model and this is how free markets keep prices low...competition.

We have not had a free market in decades because of government interference, red tape and regulation.

It would be great if we did though

WHY IN THE FUCK WOULD YOU NOT WANT TO BE AN INDEPENDENT CONTRACTOR

WHO ARE THESE IDIOTS DEMANDING TO BE OFFICIAL EMPLOYEES

SO... they classified people that work for a company as workers so the company actually has to pay them which makes said company not as profitable.

Loophole closed. What's the issue?

companies have been trying to pull this stunt
of saying the workers are "independent contractors" for a hundred years now,
and the Law has always slapped them down.

In one of the most daring - if seemingly inevitable - ultimatums issued by a corporation facing a damaging legal action, Uber CEO Dara Khosroshahi has just threatened for the first time publicly to shut down its California business if its appeal of a judge's ruling in a case over a recent California law is rejected.

This is not good for shareholders, but the company claims it has no choice, since running the business with all drivers as full-time employees would lead to an impossible hike in fees, likely rending the business uncompetitive and unprofitable. California is the largest state in the country as well as Uber's home state, and San Francisco and LA are two of Uber's biggest markets worldwide.

As we reported yesterday, Uber has warned that it may need to hike prices up to 111% after a San Francisco judge ruled on Monday that the ride-sharing company, as well as its competitor Lyft, must classify its drivers as employees, a move which will disproportionately impact drivers from low-income backgrounds who don't see driving as a full-time job, but rather a flexible way to earn some money on their own terms.

[link to www.zerohedge.com (secure)]

This. The CEO is bluffing. The entire business model of UBER from day one has relied on what amounts to near slave labor. All of the substantial costs of doing business from gas to maintenance to the cost of the vehicle is put on the driver and the company keeps a huge chunk of fares while controlling said fares. The whole thing has been a scam from the beginning. Ask any driver what they actually make when wait time, driving back time and all vehicle, gas, maintenance, insurance, depreciation etc costs are figured in and it's not even $5 an hour.

I guess soon, they won't be "employees" or "contract workers", they'll just be "unemployed".

Win-Win for everyone, right?? /sarc

In an Uber/Lyft situation, the driver works for themselves. They aren't hired as employees, and they know this when they start driving.

Uber is bluffing.

They know they can't survive if they had to compete on the same footing as actual taxi companies.

Their business model involves shifting costs unfairly onto the employees. While the executives make themselves rich on stock options.

Fuck them.

I hope they go under.

Well the issue seems to be with California!...
You don’t see Uber having issues with any other state.

Stop being so naive, a true free market would lead to the monopolization of all markets by a single mega corporation.

Fuck Uber. It’s time to let it die and bring back local taxi companies.

I drove for Lyft (which pays better than Uber) from Last September til just before the lockdowns happened.

They pay 75 cents per mile which sounds good on paper but considering where I live, most pickups were about 15-20 mins from me, I was pissing away more gas than the money I was earning.

You don’t get paid for the distance you drive to pick someone up. Uber is the same way unless they changed that recently.

Before someone says “just deny those rides”, when your ride acceptance rate drops below 90% they penalize you by not telling you how far riders want to go until you pick them up. It’s a horrible business model if you’re trying to pay your bills.

It’s impossible to make a decent living if you’re wanting to do that full time. I’d drive for 6 hours straight per day and average about $40-50 after my gas. They don’t pay you for gas.

If they want to go less than 4 miles (which is the majority of riders) you only get paid $3 for the ride if they don’t tip you. At least half of my riders wouldn’t tip. It was mostly the blacks. Even Whites would usually only tip $5 at best.

Black passengers are ungrateful and rude as fuck. They would eat in my car without asking if it’s ok with me and slop all over my car. They’d rip my trunk open so hard that the corners of my deck lid would smash into my back windshield. I was worried they’d break my window one of these days.

They’d slam my doors getting in and out. That was common mostly with blacks.

If they didn’t like my ride they’d 1 star me and get their money back. I wouldn’t get paid for that ride.

My acceptance rate after a while was consistently stuck at 45% because I’d refuse to pick up any nickname passengers, black sounding names or black profile pics. It’s impossible to avoid all of them though. Drivers are required to have a pfp and display all kinds of info but not passengers. The double standard was real.

I went into a lot of bad areas and risked my life every day. Not by choice if their destination was unknown. All for some low IQ obnoxious fuckwits. One black guy I dropped off almost refused to get out of my car one night because he was waiting for his buddy/roommate to get home. He said he was afraid of being killed because the neighborhood was dangerous. I had to tell him I’m not his bodyguard and to get the hell out of my car.

Anyway long story short, the job is dangerous, people are assholes and you don’t get paid what everyone claims. Maybe it was just my area, I don’t know.

The day that Uber and Lyft are dead companies, I will throw a party and celebrate.

This. The CEO is bluffing. The entire business model of UBER from day one has relied on what amounts to near slave labor. All of the substantial costs of doing business from gas to maintenance to the cost of the vehicle is put on the driver and the company keeps a huge chunk of fares while controlling said fares. The whole thing has been a scam from the beginning. Ask any driver what they actually make when wait time, driving back time and all vehicle, gas, maintenance, insurance, depreciation etc costs are figured in and it's not even $5 an hour.

That sounds true.......*