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The Politicians’ War On Uber

Tyler Durden's picture




 

Submitted by John Stossel via Reason.com,

Hillary Clinton gave a speech warning that the new “sharing economy” of businesses such as the ride-hailing company Uber is “raising hard questions about workplace protections.”

Democrats hate what labor unions hate, and a taxi drivers’ union hates Uber, too. Its NYC website proclaims, “Uber has the money. But we are the PEOPLE!”

The taxi cartels, which provide inferior service and are micromanaged by government, don’t like getting competition from efficient companies like Uber.

Clinton didn’t mention Uber by name, but we don’t have to wonder which company she meant. The New York Times reports that Clinton contacted Uber and told them her speech would threaten to “crack down” on companies that don’t treat independent contractors as full employees. Apparently, Democrats think something’s wrong if people are independent contractors.

But no driver is forced to work for Uber. People volunteer. They like the flexibility. They like getting more use out of their cars. It’s win-win-win. Drivers earn money, customers save money while gaining convenience, and Uber makes money. Why does Clinton insist on interfering with that?

Clinton’s “social democrat” pal, New York’s Mayor Bill de Blasio, wants to crack down on Uber by limiting how many drivers they may hire. Uber cleverly responded with an app—a “de Blasio option”—that shows people how much longer they’d have to wait if de Blasio gets his way.

Good for Uber for fighting back. I wish more companies did.

Federal Express didn’t.

FedEx Ground classified drivers as independent contractors. Again, drivers were willing to drive, FedEx Ground was willing to pay, and customers got packages faster and more reliably than they did from the U.S. Postal Service.

But lawyers built a class action suit on behalf of FedEx drivers, saying they should be treated as employees, paying payroll tax, getting workman’s compensation, receiving benefits. FedEx settled the case for $228 million and began abandoning its independent contractor system.

Uber’s use of independent drivers—who use their own cars—is now called analogous to FedEx’s use of delivery drivers.

That means Uber may soon have to treat its drivers as employees. Business analysts at ZenPayroll estimate that the changes will cost $209 million. We customers will pay for that, and we’ll have fewer ride-share choices, too.

Lawsuits and politicians’ attacks against one company have a chilling effect on others. The “independent contractor” assault will destroy all sorts of companies we’ll never even know about because now they won’t come into existence.

Some of the entrepreneurs who dreamed of starting them will look at the additional costs, crunch the numbers and decide there’s not enough profit potential to risk investing their money.

Who knows what odd but popular sharing-economy innovations aren’t happening even now—ones we’d use and love—because businesspeople with great ideas are frightened by the Clintons, deBlasios and lawyers?

In France, the old-fashioned cabbies rioted against Uber, blocking Uber cars and dropping rocks on them from a bridge. Instead of arresting rioters, the French government threatened to arrest Uber executives for breaking taxi rules. Once again, without even a new law directed specifically at Uber, the enemies of free choice got their way. Paris police have been ordered to forbid use of the Uber app.

I disagree with Jeb Bush about many things, but he was right to praise Uber for “disrupting the old order” of business.

The New York Times responded with a sarcastic piece pointing out that when Bush used an Uber car, the driver, Munir Algazaly, didn’t recognize Bush. He said he plans to vote for Clinton, though Bush seemed like a “nice guy.” Another site mocked Bush because he talked about “hailing” an Uber, not “hiring” one. Another pointed out that the car Bush rode in had a license plate holder that said “Fresh as F—” on it. Ha, ha.

But it’s the sneering media who miss the point. Bush is smart to see serious benefits from “reputation” businesses like Uber. Politicians and lawyers who threaten to destroy such companies threaten us all.

 

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Sun, 08/02/2015 - 19:31 | 6382952 TruxtonSpangler
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Uber is the new economy. EVERY service will be Uber-ized.

Sun, 08/02/2015 - 19:38 | 6382979 quintago
quintago's picture

How can you classify somebody as an employee when they are driving for lyft and uber intermittently?

Sun, 08/02/2015 - 19:52 | 6382998 Supernova Born
Supernova Born's picture

The signature "job" of the Precariat

...and a new process to play rentier for the .01%

Sun, 08/02/2015 - 19:57 | 6383039 philipat
philipat's picture

We have to redifine what we mean by "Work" in the 21st century. Globalization has overcome labor", as was always the intent But the answer is not to revert to 19th century solutions. Problem is that Politicians live in a world of 19th century thinking, unless otherwise directed by the special interests (aka campaign contributors).

Sun, 08/02/2015 - 20:01 | 6383057 Squid-puppets a...
Squid-puppets a-go-go's picture

find a new more efficient way of doing an industry and sure enough, indentured rentiers will try and kill it

so much for economic Darwinism

Sun, 08/02/2015 - 20:15 | 6383077 Supernova Born
Supernova Born's picture

Uber is researching driverless cars.

The "Johnny Cab" of Total Recall.

The human driver phase of Uber is a transition. It will help eliminate the organized class of transportation service providers which presently exists.

A rag tag bunch of Uber drivers will be far easier to displace.

It seems evident it will happen.

Truck Driver is the #1 job in most US states. Those jobs can be automated.

Displacement of the majority of the population is the future.

Sun, 08/02/2015 - 20:15 | 6383090 knukles
knukles's picture

If the sharing economy is so bad why do I have to share house, home, food and wealth with strangers under Agenda 21 and associated policies?

Sun, 08/02/2015 - 20:20 | 6383103 nmewn
nmewn's picture

Cuz, if I had a son he would look like a poor Bangladeshi child being flooded out from his home by rising oceans because of manmade global warming?

Sun, 08/02/2015 - 21:34 | 6383292 James_Cole
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"The “independent contractor” assault will destroy all sorts of companies we’ll never even know about because now they won’t come into existence."

O dear gawd the job creators will take their ball and go home!! Hells bells, what will the 5 coders at uber do without the work????

Sun, 08/02/2015 - 21:48 | 6383338 nmewn
nmewn's picture

You saying these independents will be driven out of this business by the state and its cronies?

For once we agree.

Sun, 08/02/2015 - 22:08 | 6383395 James_Cole
James_Cole's picture

You know who whines all day about 'state cronies' holding them back? Useless bitchez. Fuck those losers, smart innovative people will work with the system they're given, always have.

Sun, 08/02/2015 - 23:45 | 6383643 Dazman
Dazman's picture

To some degree you are correct (lazy people blame others). However it's a hell of a lot easier to be "innovative" when the sticky fingered government isn't there trying to rob you blind and limit you every chance they get.

And besides - North Korea. How many "smart innovative people" and given a chance to "work with the system" there? Based on your reasoning you'll be ok with the creep towards dictatorship. I, my friend, am not!

Mon, 08/03/2015 - 10:00 | 6384608 Prisoners_dilemna
Prisoners_dilemna's picture

James does have a point.

CEO Wendell Weeks "innovated" a grape juice filter into a "global warming friendly" diesel filter.

Corning Inc has been sitting on the expired patent for this hunk of clay since the late 60's. The original idea was to flow grape juice thru and wine comes out the other end, in minutes. This was achived thru high surface area and lots of fermenting yeast inside the filter.

I was present when Chuck Schumer shook hands with CEO Weeks at Cornings research facility. Within 30 days a law was "innovated" and now every new diesel vehicle costs $8000 more.

To James point, CEO Weeks didn't whine about state cronies. He went out and found himself a state crony and "innovated".

http://www.syracuse.com/news/index.ssf/2010/04/the_story_of_an_8000_exha...

 

 

 

Sun, 08/02/2015 - 20:25 | 6383114 XitSam
XitSam's picture

Because you love freedom, comrade!  The proletariat thanks you for your generosity! Forward to equality!

Sun, 08/02/2015 - 21:35 | 6383286 RafterManFMJ
RafterManFMJ's picture

I'll tell ya straight up; in 10-15 year those deemed to have "spare bedrooms" will be mandated to take in an illegal or a fambily of Uruk-hai.

Sun, 08/02/2015 - 21:51 | 6383347 nmewn
nmewn's picture

I can hardly wait...lol...they better get the "laws & regulations" in place first cuz I've got some ideas of my own ;-)

Sun, 08/02/2015 - 23:48 | 6383648 Dazman
Dazman's picture

By that point in time there will be no jobs left and food will be so expensive that it will be a luxury item. So, maybe we can learn to be cannibals and throw those illiegals on the bbq... game on!

Mon, 08/03/2015 - 02:44 | 6383918 SSRI Junkie
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Remember, Tuesday is Soylent Green day.

Sun, 08/02/2015 - 20:17 | 6383095 NoDebt
NoDebt's picture

I think it's important to ask the core question here:  why don't companies want these people on the books as "employees" in the first place?  BECAUSE OF THE GOVERNMENT.  They've made it prohibitive to have employees.  So businesses do the next logial thing- make them independent contractors.

And you are surprised the government doesn't like this behavior?  

THE PROBLEM IS AND ALWAYS WILL BE THE GOVERNMENT.  Everything they touch turns to shit.  That's why I can not understand people who are all-in for inviting government into every area of their lives.  Whether it be for "safety" or "fairness" or just because they want more free shit.  They are the stupidest people I've ever met.  They have no idea what they're asking for or what it will really cost them.

 

Sun, 08/02/2015 - 21:10 | 6383127 philipat
philipat's picture

The one thing that Government does do well is to manipulate economic staistics, giving support to the old adage about "Lies, damned lies and statistics". Other than that, yes it does a pretty good job of fucking everything up..and "Woody and the Progressives" have excelled.

Incidentally, not to worry, lots of Third World countries have regulations to prevent employers from using Independent contractors as a way around stupid Government policies. Coming to a country near ypou shortly?

Sun, 08/02/2015 - 21:39 | 6383308 James_Cole
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pro tip: business will ALWAYS aim to pay employees as little as possible and outsource liability. unskilled contractors will always be cheaper than unskilled employees. No government needed.

Mon, 08/03/2015 - 13:15 | 6385538 ZD1
ZD1's picture

pro tip: government will ALWAYS aim to work gov. employees as little as possible and outsource liability for their wages to taxpayers. unskilled government workers will always be MOAR expensive than unskilled employees. No business needed to idiots like JC.

Sun, 08/02/2015 - 20:17 | 6383096 nmewn
nmewn's picture

You sure you're not confusing Uber with Google?

"SAN FRANCISCO — Google >>>will begin<<< reporting incidents encountered by its driverless-car program on a dedicated website, the search company announced Friday.

Google had been taken to task recently when reports surfaced that its fleet of self-driving cars had been involved in various accidents during years of testing on the streets of the company's Silicon Valley hometown of Mountain View, Calif."

http://www.usatoday.com/story/tech/2015/06/05/google-to-report-driverles...

Well thats nice, no point in going backwards with the data, always Forward! and of course self-reporting always works! ;-)

Sun, 08/02/2015 - 20:38 | 6383126 Supernova Born
Supernova Born's picture

Use Google and search "Uber driverless".

http://www.csmonitor.com/Technology/2015/0522/Why-Uber-s-driverless-car-...

As far as a big tech vs. .gov line I don't see one at all.

The good guy corporate vs. .gov is a myth.

.gov/NSA/Big Tech seem joined at the hip and are fast becoming mutally dependent allies.

Sun, 08/02/2015 - 20:44 | 6383165 nmewn
nmewn's picture

"As far as a big tech vs. .gov line I don't see one at all."

Because its not there, plus one ;-)

Sun, 08/02/2015 - 22:20 | 6383428 RyeWhiskey
RyeWhiskey's picture

More efficient THEFT. You got that right.

Mon, 08/03/2015 - 05:30 | 6383068 philipat
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And the "Giant sucking sound" of Labor being screwed is about to re-occur with TPP and TTIP, which is, of course, why they need to be "negotiated" far from the light of day.

Any Treaty that needs to provide funding for the "Retraining of displaced workers" displaced by it and needs to re-classify countries with appalling human rights records so as to allow them to join can't be all good......except of course to the oligarchy, can't be all good?

Sun, 08/02/2015 - 19:57 | 6383044 BurningFuld
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Me I want to be a new group funded doctor..just text me your problems. What you need an actual license for that? You fucking socialists.

Sun, 08/02/2015 - 21:21 | 6383261 booboo
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WebMD beat you to it.

Sun, 08/02/2015 - 19:49 | 6383017 NoPension
NoPension's picture

A Taxi Medallion in New York is selling for a million dollars.
This is going to get ugly.

Sun, 08/02/2015 - 20:00 | 6383050 philipat
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It was over $1 Million at one time but I read now down to about $700K and falling. It would be interesting to know whether, either directly (Yellow cabs) or indirectly (Uber) fares in NYC have declined?

Sun, 08/02/2015 - 20:32 | 6383139 Son of Loki
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New Yorkers deserve what they get living in that cesspool lead by DiBlasio. I'd rather take the bus full of Somail's and Punjabi's into the city then ride one of those cabs where you get threatened if you don't promise a fat tip. Screw them!

Sun, 08/02/2015 - 23:19 | 6383588 RyeWhiskey
RyeWhiskey's picture

Right... Because that money is better off in safe offsore tax-evaded pockets of Uber oligarchy.

Good one.

Mon, 08/03/2015 - 04:58 | 6384034 WOAR
WOAR's picture

I don't care about the Uber oligarchy if it's innovating. I don't care about Google's spying, either.

I care about the oligarchy that strangles you and produces nothing: the Government, and Vested Interests.

When the only product of a business is that "they love your shop, and hope nothing bad happens to it," they are not actually producing anything. The protection racket is the problem here, not Uber, Google, or hell, anything else.

Let businesses compete, laws be damned!

Sun, 08/02/2015 - 20:46 | 6383167 Fukushima Fricassee
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Boycott taxis in any city that pulls shit.

Sun, 08/02/2015 - 22:23 | 6383435 RyeWhiskey
RyeWhiskey's picture

Is this how you support multi-BILLION dollar mega-corporations such as Uber?
Ever heard of critical thinking? Or is that Uber PR propaganda department thinking for you?

Mon, 08/03/2015 - 01:18 | 6383821 Bunga Bunga
Bunga Bunga's picture

I am waiting for the Uber politician.

Sun, 08/02/2015 - 19:36 | 6382970 PoasterToaster
PoasterToaster's picture

And now we see the final, threadbare stage of the nanny state excuses.  It was always for our own good, until it wasn't.  Workplace protections my ass.

Times they are a'changin.

Sun, 08/02/2015 - 19:40 | 6382981 Goldilocks
Goldilocks's picture

And so goes the protectionist war on us all.

 

Sun, 08/02/2015 - 19:40 | 6382982 Roanman
Roanman's picture

Stossel needs to come up with some new schtick. Now Hillary is frightening off pussy entrepreneurs? I'm thinking not so much.

Sun, 08/02/2015 - 20:01 | 6383059 booboo
booboo's picture

said the statist

Wed, 08/05/2015 - 18:37 | 6395203 Roanman
Roanman's picture

LOL. What a twit you are, anyone reading my comments around here knows that I am the furthest thing from a statist imaginable.

Sun, 08/02/2015 - 19:40 | 6382986 Hugh G. Rection
Hugh G. Rection's picture

Uber has been a godsend

Sun, 08/02/2015 - 20:33 | 6383140 redd_green
redd_green's picture

Hugh, to WHO?

Sun, 08/02/2015 - 20:40 | 6383158 Hugh G. Rection
Hugh G. Rection's picture

To me.. I am just getting by, I drive in my spare time and am making enough to keep myself cash flowing while I try and get a decent job. I drive nights, weekends, and they put my earnings into my checking account every Thursday. Everyone who rides loves it; more affordable, don't need cash, directions clearly on the app so no extra distance, and riding with someone who is more like a friend of a friend.

Sun, 08/02/2015 - 20:59 | 6383202 redd_green
redd_green's picture

That's cool, best luck to you H.G.R. Better times for us all.

Sun, 08/02/2015 - 21:01 | 6383207 Hugh G. Rection
Hugh G. Rection's picture

Mahalo RG

Sun, 08/02/2015 - 22:41 | 6383480 Buckaroo Banzai
Buckaroo Banzai's picture

The economics of being an Uber driver are pretty shitty. Once you factor in gas, oil, maintenance, and depreciation, it's a bad deal.

Uber takes the lions share of the cash, and shoulders none of the risk or expense. The driver does the work, bears all the expense and risk, for a relatively tiny residual amount.

Sun, 08/02/2015 - 23:48 | 6383647 jimfcarroll
jimfcarroll's picture

Start another service and charge less. You should get the lions share of the business and force Uber's pricing down.

Mon, 08/03/2015 - 16:45 | 6386648 countupir
countupir's picture

Don't you think it would be obvious enough to the Uber driver they weren't making money to make ends meet as Hugh from above describes?  Isn't his bottom line in this case more important than your economic speculation or do you think he is taking a loss and just hasn't figured it out?  

Uber doesn't take any risk??  What a stupid thing to suggest.  They have insurance on their drivers beyond the driver's insurance, they are fighting in court across the globe for a concept such as freedom/free markets.  They are to many governments what Howard Stern was/is to the FCC.  Fighting a fight for many interests besides their own.  And like Stern they are trying to make some money on the way.

Mon, 08/03/2015 - 03:37 | 6383968 SoCalBusted
SoCalBusted's picture

Are most of your tips in cash or credit card?

Sun, 08/02/2015 - 22:17 | 6383422 Boxed Merlot
Boxed Merlot's picture

Uber has been a godsend...

 

 

What many folks don't realize are the benefits of being an independent contractor extend beyond the flexibility and extra income in can generate.  I chose that route many times in my working career and reaped many tax advantages as well.  The insurance and liability issues are a red herring and are easily accounted for.  Besides, the folks benefitting from those industries aren’t all that far removed from bankers and politicians if at all anyway.

Personally, I don't understand the government wishing to stifle this activity as commerce is commerce and this is an activity that can be very easily monitored through their access to social media communication platforms including their ownership of the TBTF financial industry's gathering/reporting tentacles.

Now, when these folks start using tangible assets in exchange for their services in something other than electronic cyphrages, serial numbered notes tracked through atms/casinos and other banking supplied devices, their screeches of "Off with their Heads!" will become even more shrill.

 

jmo.

 

Sun, 08/02/2015 - 22:26 | 6383444 RyeWhiskey
RyeWhiskey's picture

If .gov wished to "stiffle" anything Uber wouldn't be a $51 BILLION dollar multi-national mega-corporation.
Can we stop this "poor Uber" nonsense?

"Ok". It didn't invent anything. And I mean anything at all, Fine.

But "poor Uber"??? You got to be kidding!

Mon, 08/03/2015 - 00:49 | 6383760 Boxed Merlot
Boxed Merlot's picture

"poor Uber"???...

 

I didn't intend to have my comments be interpreted as "poor uber".  I was commenting on the article's reference to Ms. Clinton giving them a heads up on her press release.  As far as I care, Uber's as ripe for cloning as any other business model and I suspect their future will be filled with competition as well it should be.

Independent contracting is not an evil to be regulated out of existence and should actually be encouraged imho.

Sun, 08/02/2015 - 22:24 | 6383440 RyeWhiskey
RyeWhiskey's picture

For criminal Uber billionares. Yes. Yes indeed...

Sun, 08/02/2015 - 19:49 | 6382987 The Delicate Genius
The Delicate Genius's picture

de Blasio keeps finding new ways to prove what a stupid, pandering cryptototalitarian statist cunt he is.

of course, what it's really about in nyc is the medallion system.

and also - since in dozens of cab trips in nyc I got a white, native english speaker exactly once... the cabbies, and the shitty petty mafias that fund them {let me risk offense and guess that ultimately, many or most of these cabbies are working for wealthy NY Jews} don't want to lose their government-protected cartel and fleecing of the public.

granted, cabs are pretty cheap, but if someone can do it cheaper, and do it while not assaulting me with his b.o. as he argues with someone in Haiti... why in the fuck is it the government's business?

De Blasio must love the cabbies - they have to pay tens of thousands for the right to conduct business on the public streets the public paid for on top of their taxes and fees - and hardly a white or american amongst them.

To the extent New yorkers voted for the puke, I'm all for declaring the entire city a foreign country and building a wall around it.

apart from missing some good rock shows and plays - new york mostly offers the world over-priced restaurants, hipsters, free loaders, the worst, most obnoxious fans in sports [outside Philly, anyway] and financial sector parasites who will be first up against the wall when the revolution comes.

Sun, 08/02/2015 - 20:35 | 6383146 redd_green
redd_green's picture

Not just NYC, but most every major city in the frickin world.  The politicians LOVE their huge taxes on ... well everything. 

Sun, 08/02/2015 - 21:22 | 6383248 jimfcarroll
jimfcarroll's picture

"cryptototalitarian" - HA! Genius indeed. Not so delicate, but genius. I'm going to steal that. :-)

EDIT: Thinking about it for a minute, I like "cryptostalinist" even better.

Sun, 08/02/2015 - 22:30 | 6383452 RyeWhiskey
RyeWhiskey's picture

Taxis are thousands of local small business owners that yes - ARE paying taxes and ARE following laws.

You wouldn't see the multi-BILLION dollar TECH mafia now, would you ?

Because some just refuse to admit the obvious.

Uber is Walmart. That's all it is. But this time it violates laws and evades taxes paid by everyone else.

Enough repeating Uber corproate meme. Start thinking outside of your programming.

Sun, 08/02/2015 - 23:52 | 6383637 jimfcarroll
jimfcarroll's picture

Yeah. Because the people here are the status-quo.

Taxi's are NOT "thousands of local small business owners." They are a few companies in each city where the supply is artificially constrained in order to protect them and their profits. The "small driver" doesn't exist EXCEPT in cities without medallion systems (read: crony-capitalism at the local level), AND where Uber operates.

Uber connects drivers with people that want rides. You want to stop free people who want to provide rides for a fee, and people that want to pay for those rides, from conducting a private personal transaction where they VOLUNTARILY use Uber as the place where they coordinate.

THINK about who is using force against who in your scheme, and in the transactions between riders, drivers, and Uber.

You should start thinking outside of your programming and stop, in typical status-quo totalitarian fashion, forcing compliance of other free people (who are using no force against anyone) with your misconceptions.

EDIT: Reason TV on Washington's Medallion law (it was the last holdout) and the WONDERFUL effects of regulation on the "small driver": https://www.youtube.com/watch?v=2T2912EqJ0U

Mon, 08/03/2015 - 19:20 | 6387233 jimfcarroll
jimfcarroll's picture

All you anti-Uber morons that think you're in support of the little guy (apparently the little guys that voluntarily drive Uber cars don't count), here's what you're really supporting:

https://www.youtube.com/watch?v=VAfCP0KO938&t=4m45s

You're are really supporting a totalitarian crony-capitalism that destroys the opportunities for the people you ostensibly support. Morons.

Sun, 08/02/2015 - 19:46 | 6383006 I am Jobe
I am Jobe's picture

How about Uberzing Relationships. Marriages , or so called Licesend Prostitution?

 

Sun, 08/02/2015 - 20:00 | 6383054 BurningFuld
BurningFuld's picture

I want Uber pot deliveries.  Here's your weed!

Sun, 08/02/2015 - 20:17 | 6383093 negative rates
negative rates's picture

Forget that, soon we'll have people who pick up the trash for free and double as, here's your weed, indeed.

Sun, 08/02/2015 - 20:02 | 6383060 Goldilocks
Goldilocks's picture

Marvin Gaye - Lets get it on
http://www.youtube.com/watch?v=x6QZn9xiuOE (4:55)

Sun, 08/02/2015 - 19:53 | 6383031 Kprime
Kprime's picture

fuck the US government.  They day someone drops a nuke on Washington I will raise a glass and toast the demise of the worse criminals the world has ever been subjected too.

Sun, 08/02/2015 - 20:22 | 6383110 negative rates
negative rates's picture

Constitutional convention anyone?

Sun, 08/02/2015 - 19:56 | 6383032 HardlyZero
HardlyZero's picture

Not mentioned, but are major issues, is insurance and liability.

If Uber, and others, can fix the insurance and liability issues then more power to them.

The courts and insurance companies will get involved before it gets done.

It is really the existing law's issues with Uber.

The Uber technology is a fact and will find its way to many existing businesses and companies.

Each established community (e.g. taxi and cab service) has norms and legalities that will adapt and change over time.

Sun, 08/02/2015 - 20:05 | 6383071 nmewn
nmewn's picture

I think we're well past "laws & legalities" as something that is viewed as a general positive now. 

Sun, 08/02/2015 - 20:19 | 6383099 mijev
mijev's picture

In a free market a new insurance company would come along to offer just such a policy.

Sun, 08/02/2015 - 20:26 | 6383117 nmewn
nmewn's picture

No worries, I'm sure the state and their cronies will put a stop to any of that nonsense or make it cost prohibitive, prolly the latter, so they can say to the peeps "Look! We gave them a choice!"

And then the next phase of lobbying can begin, subsidizing the prohibitive insurance rates so we can have truly Faaarrreeee! markets!

Sometimes I could just fucking scream.

Mon, 08/03/2015 - 04:41 | 6384019 buzzkillb
buzzkillb's picture

Not an Uber driver but my personal car is insured as a business car that drives to random locations during the day. For all they know I could be an Uber driver since they didn't ask much more than how many miles I will drive a year. If you are a business of one you still get insurance unless you like going naked. Even if you work for a large company with insurance some professions still get their own personal liability insurance. Maybe a new insurance will come out to compete for just Uber drivers, But everything is out there and available already.

Now can someone still make money being properly insured? I have no idea, I already find it hard to believe people can make very much money driving others around based on depreciation, maintenance costs, and wear and tear on a car. Maybe tax write offs offset the whole thing? You can't just drive any car for this service either.

At the end people seem to like the service and there are plenty of drivers.

Sun, 08/02/2015 - 22:34 | 6383462 RyeWhiskey
RyeWhiskey's picture

Is this why UBER billionaire owners are ABOVE THE LAW??

Sun, 08/02/2015 - 19:56 | 6383040 nmewn
nmewn's picture

Uber drivers can't be ALLOWED to freely associate with who they want & join in contractual arrangements outside the purview of the state and it's licensing schemes!

What the hell do they think this is, free enterprise!? ;-)

Sun, 08/02/2015 - 20:02 | 6383051 franciscopendergrass
franciscopendergrass's picture

Uber is a direct attack on monopolies and government licensing.  

Also, Hilary doesnt like it.  It must be good for the people.  Fuck Hilary and her husband

Sun, 08/02/2015 - 23:24 | 6383470 RyeWhiskey
RyeWhiskey's picture

How can you call thousands small local businesses a "monopoly" ??

And singlular monolithic MUTLI-BILLION dollar multinational Uber that factually didn't invent absolutely anything - NOT??

Mon, 08/03/2015 - 00:10 | 6383683 franciscopendergrass
franciscopendergrass's picture

Do you even Lyft, bro?

Sun, 08/02/2015 - 20:00 | 6383052 booboo
booboo's picture

The last thing this ecomomy needs is uninsured unlicensed politicians telling people with whom they can enter a contractual agreement.

Sun, 08/02/2015 - 20:05 | 6383070 davidalan1
davidalan1's picture

Well at least some of the negative push back made them lower their ubiquitous Craigslist driver ads from 1200 a week down to 740 a more realistic figure. I hate our culture of bait and switch.

Sun, 08/02/2015 - 20:30 | 6383131 redd_green
redd_green's picture

Oh yeah, and its not all "our culture", crooks do it everywhere. 

Sun, 08/02/2015 - 20:22 | 6383109 TheAntiProgressive
TheAntiProgressive's picture

“Uber has the money. But we are the PEOPLE!”

They aren't "The People" they are the "special" people.  They are protected by the bribes and insider dealing so they get their 1M dollar medallions.  Uber is just another extension of effeciency that is all part of the internet.  Check out your cellphone and try and calculate just how many jobs this "new" technology has totally eliminated.  OK, but why are the "statist" supporters somehow exempt.  Welcome cab drivers to the "new economy".

How you like it?

Sun, 08/02/2015 - 22:38 | 6383473 RyeWhiskey
RyeWhiskey's picture

Uber is efficient in theft, violating law and evading taxes.

AND - creating yet another monopoly.

For a company that FACTUALLY invented absolutely nothing (taxi apps existed long before uber) - that's simply stunning.

Mon, 08/03/2015 - 00:04 | 6383678 jimfcarroll
jimfcarroll's picture

Monopoly? What are you talking about? You're the one supporting STATE run monopolies. There's MULTIPLE ride sharing companies who's services overlap.

Uber is RUNNING a marketplace. Taxi apps are NOT THE SAME THING.

Sun, 08/02/2015 - 20:25 | 6383115 redd_green
redd_green's picture

They have a fantastic business model. For instance, they are losing 470 million on 415 million in revenue. Not bad!  And, they are growing 300% a year.  So, in 10 years, they will have 47 billion in losses on 41.5 billion in revenue.   Genius!  Where can I buy in!!!!

Sun, 08/02/2015 - 20:27 | 6383121 Puncher75
Puncher75's picture

I take U Ed everywhere. Taxis are the horse & Buggy of the current reality. They will soon be dead.

Sun, 08/02/2015 - 22:40 | 6383474 RyeWhiskey
RyeWhiskey's picture

These exact words are copy-pasted by paid Uber social media trolls everywhere.
I hope you are not just repeating their nonsensical propaganda.

Competition has got to be fair. If I pay my taxes - why doesn't multibillion dollar Uber??

It's like "let's have a boxing match" - but I'll bring my gun, ok?

 

Sun, 08/02/2015 - 20:28 | 6383122 redd_green
redd_green's picture

Re "FedEx Ground was willing to pay, and customers got packages faster and more reliably than they did from the U.S. Postal Service."  What are you smoking, Stossel?   Only a complete idiot would compare a private company, who hires and fires at will, to the USPS, who have to go to frickin CONGRESS to raise rates a penny.

 

Stupid article.

Sun, 08/02/2015 - 20:31 | 6383135 The Shape
The Shape's picture

1500 Uber prosecutions in one Australian state.

0 prosecutions for foreigners illegally purchasing Australian real estate. No official stats kept on buyers either

http://www.idiottax.net/2015/07/land-of-lie.html

Sun, 08/02/2015 - 20:51 | 6383179 mijev
mijev's picture

I wonder if the Chinese stock market woes will have a negative or positive effect on Australian/Sydney real estate. Time will tell but I wouldn't feel at all comfortable entering the market right now.

Sun, 08/02/2015 - 20:35 | 6383148 Son of Loki
Son of Loki's picture

Uber and anything 'independent' makes Hillary's head hurt.

Sun, 08/02/2015 - 20:39 | 6383153 ptoemmes
ptoemmes's picture

I HAVE a dog in this issue with Uber as the co-owner (with my wife and sons) of a small car service company is southeast Florida - Broward County to be exact. 

The conflict is usually characterized as one between Uber and taxi interests, but there is also a highly regulated car service (and to a lesser extent limousine business) that is affected as well.  One of the direct impacts of "highly regulated" is the effect it has on one's cost structure (nd therefore price structure): permits, licensing, inspections, 7X24 commercial auto and libaility insurance, fees paid to airports and sea ports annualy and per job, etc.  Most car service companise are small(er) - 10 cars or less - and we certainly fall into that category.  There are some much larger ones - 50+ vehicles - like Carey, etc.  As an aisde, we provide (bread winner) jobs, too.

Uber, understandably, does not like the regulatory envirionments in the markets they try to enter - among other things I imagine because it breaks their profit model.  Hell, I don't like it either, but since I do not have the funding available to me of an Uber to ignore the regualtions and state (insurance laws) and pay the fines (for the Uber drivers) I have to choose to comply with the regulatory burden.

Now, like all things "free market" competitive, there is the need for SOME regulation to, if nothing else, insure safety in this case.  But I will freely admit the regulatory structure is out of control.

Uber claims becasue they are a new (business) approach called ride sharing and call themselves a TNC (Transportation Network Company) that uses a smartphone app to connect customers to Uber drivers (it's a bit more than that - demand/load pricing, etc) that they should be regulated little if at all - certainly less than taxis.  If that's the case then smartphone apps linking car service (can't say for taxis) to customers is NOTHING NEW so that supposed unique attribute is not really unique at all.  

At the risk of getting into a protracted peeing contest let me say that I personally do not begrudge the likes of Uber or Lyft access to the markets I operate in.  I CAN complete with them IF the regulatory playing field is level.  And there is a LOT MORE to that than just permitting, licensing, inspections, etc.  It is also, among other thigns, the time restrictions between ride request and ride provision (at least four hours locally).  Yes, I know whose lobby got that in place.

Uber generally enters a market, certainly in Broward County, operates illegally, and through the use of money and lobbying tries to get its way for just itself.  If they do and the regulations do not apply to everyone else then the competitive playing fileld is tilted - big time.

Whether it's a TNC, a taxi, or a car service compnay picking up a passenger from point A and dropping them at, say, the airport the functional act is the same.  The safety risk is the same.  A butt is moved from point A to point B in a vehicle.  The regulations, which I admit are burdensome, have to be the same - whatever they end up being.

 

 

 

 

 

Sun, 08/02/2015 - 20:59 | 6383203 adr
adr's picture

Uber calls itself "ride sharing" but that claim can only be made if the driver and passenger are going to the same destination for the same purpose.

I think there is a term for this. I think it has been around for a long time. Carpooling. People who Carpool may share gas costs or have one person buy the other lunch.

I don't think you can call someone hiring another to drive them to a location of their choosing and then pay the driver and have them drive off "ride sharing".

Uber also takes quite a large slice of the pie for essentially doing nothing but matching a driver to a fare.

Sun, 08/02/2015 - 22:35 | 6383468 NoPension
NoPension's picture

I'm giving it away. In five years this will be worth 20 billion, and I'll just shoot myself.
But someone argue how this is not EXACTLY like Uber.

An app or website, where people post jobs they need done. Even what they are willing to pay, in cash or with a card.
Prospective "contractors" scour the ads, and if the job is in their vicinity, and they have the skill, call the client. It is understood by the client, the contractor has no licences, insurance, bonds, etc. that is how the price is kept low.

Example; big party on Sunday. Need your house pressure washed and your bathroom painted. You have called "The Real Deal" and they can't fit you in or want $1500. Buck, with a truck ( and a roller and pressure washer) calls. He'll do it by Friday, $750 cash.
It's going on now people. The government has chased so many underground, it's unbelievable.
They WILL usher in the cashless society. Just to insure their fucking vig.

Mon, 08/03/2015 - 01:19 | 6383820 trader1
trader1's picture

TaskRabbit

TaskRabbit is an online and mobile marketplace that allows users to outsource small jobs and tasks to others in their neighborhood. Wikipedia

Mon, 08/03/2015 - 05:05 | 6384037 buzzkillb
buzzkillb's picture

That pressure washer hits a roof tile, the roof tiles hits the Real Deal in the head you won't be happy that they didn't carry insurance. But if people are advertising as not having insurance they shouldn't be able to treat the job like they do have insurance. Uber seems like its a big grey area with who is responsible when something goes wrong. I don't imagine a typical car insurance policy paying out when they find out the driver was on the Uber job.

Just like not getting permits. Everyone understands the consequences, but really they don't, because who cares its cheaper, maybe.

In my business we have clients willing to pay in cash without any discount just to help out. But I keep thinking if its not on the books and we get sued, that will rock my world. The underground economy is real that's for sure, without me even asking for it. Another clue of how pissed off people are.

Sun, 08/02/2015 - 20:42 | 6383161 shovelhead
shovelhead's picture

Funny.

My wife just got a call from an Uber driver in Denver. My daughter left her phone in the cab and he wanted to return it.

He said he called the male number with the same last name so he wouldn't sound fishy but my son didn't pick up.

Try that with a NY cabbie.

Sun, 08/02/2015 - 22:44 | 6383489 RyeWhiskey
RyeWhiskey's picture

Thousands of NY cabbies have returned far more valuable belongings than that.

Don't forget - they used to cherish their license and ability to make an honest living.

These baseless attacks on taxi drivers are unnecessary.

Sun, 08/02/2015 - 20:49 | 6383174 22winmag
22winmag's picture

Uber is a godsend for mobile hookers and drug dealers!

 

Stack on!

Sun, 08/02/2015 - 23:27 | 6383493 RyeWhiskey
RyeWhiskey's picture

And anyone who likes to overpay for likely under-insured ride in someone's private car just because Uber said "it's ok".

 

Sun, 08/02/2015 - 20:52 | 6383182 adr
adr's picture

I don't have a problem with Uber, I have a problem valuing Uber at $60 billion all setting up an eventual IPO that will enrich insiders and prove once again that you don't need to run a real business to get rich thanks to Wall Street.

Uber wouldn't exist if it weren't for the insanity of Wall Street. Nobody would blow money on a losing business if there was no eventual IPO payday.

There would be no Amazon without Wall Street. No real company could stay in business for 20 years without ever operating in the black.

Sun, 08/02/2015 - 23:31 | 6383616 RyeWhiskey
RyeWhiskey's picture

Fark Uber and the criminal banker oligarchs standing behind it paying mass media whores to present this massive scam as innovation.

Mon, 08/03/2015 - 05:12 | 6384044 buzzkillb
buzzkillb's picture

You know when the best business idea is to lose billions of cheese, is when this country is screwed up. How this idea gets touted as a good thing and even one person believes this is pitiful.

Sun, 08/02/2015 - 21:13 | 6383238 numapepi
numapepi's picture

In his now famous video series, Free to Choose, Milton Friedman was in Singapore and said, when a firm faces a competitor who provides a better product at a lower price, an established firm can lower it's price and raise the quality of it's products, or it can go to government and shut down the competition.

Studies have shown that a dollar spent on lobbying is better for the bottom line than a dollar spent on anything else, R&D, advertising, mechanization, etc... Which proves Milton Friedman right.

It is clear, government is the reason wages are dropping, small business growth is negative for the first time in US history, EBT card usage is at an all time high, labor participation is at a decades low and hopelessness fills the hearts of the people.

Here are some radical ideas to improve our economy...

http://incapp.org/blog/?p=2590

Mon, 08/03/2015 - 09:35 | 6384512 NoBillsOfCredit
NoBillsOfCredit's picture

Government is part of the problem only. There are a lot of others but the principal one is the debt based fiat money system.

Sun, 08/02/2015 - 21:22 | 6383263 libertus
libertus's picture

You want a great example of a sharing economy company disrupting higher education--check out oplerno.com. You can even see these guys in action on Tuesday for most of the day. They will be talking about various ways higher ed is being transformed. However, given this regulatory environment they are fighing an uphill battle. 

Sun, 08/02/2015 - 21:23 | 6383265 Son of Loki
Son of Loki's picture
The Chinese Ride-Hailing Startup That’s Out-Ubering Uber

 

http://www.wired.com/2015/06/the-chinese-ride-hailing-startup-thats-out-...

Sun, 08/02/2015 - 21:35 | 6383288 Bunga Bunga
Bunga Bunga's picture

Uber is an App a 16 year old can write, but they are valued at $50bln. To me it looks like another Wall St scam. Soon those early investors will cash out by selling Uber overpriced merger "material", leaving the retail investors holding the bag.

Mon, 08/03/2015 - 09:33 | 6384503 NoBillsOfCredit
NoBillsOfCredit's picture

You obviously don't know beans about Uber.

Sun, 08/02/2015 - 21:45 | 6383325 Ms No
Ms No's picture

Working people are getting pinched between the government, corporate monopolies and the unions who are all corrupt as hell and have concern for our future or that of our country.  Tear this bitch down already, time to start over.

Sun, 08/02/2015 - 23:38 | 6383504 RyeWhiskey
RyeWhiskey's picture

So? Mutltibillion dollar Uber fleet which is the LARGEST in the world now is the "poor guy" and NOT a monopoly??

But millions of local tax-paying small taxi businesses and car services are a "monopoly"?

Wow. You must be using some really good stuff...

Or perhaps you have never used that weird thing some people call "thinking".

Mon, 08/03/2015 - 00:18 | 6383692 Ms No
Ms No's picture

Fuck off, I wasn't referring to either as a monopoly.  I was speaking in a general sense but now that you mention it Uber's main competition is a Union and may also qualify as a monopoly.

Sun, 08/02/2015 - 21:53 | 6383353 bigrooster
bigrooster's picture

Uber is the greatest thing to come along in along time.  I started using it two months ago the my experience has been awesome.  I don't miss the smelly Arab drivers with not personal hygiene or manners.  

Sun, 08/02/2015 - 22:47 | 6383498 RyeWhiskey
RyeWhiskey's picture

Again. Another classic example of pre-packaged Uber propaganda.

Can we stop this nonsense?

Car dispatch apps existed YEARS before Uber.

Limo and car services existed DECADES before Uber - offering BETTER price, SAME tech, and PROPER insurance.

Please, don't let me burst your Uber-lover bubble... "enjoy whatever".

Mon, 08/03/2015 - 00:23 | 6383707 Ms No
Ms No's picture

I wouldn't worry because the cab companies which historically have mob ties will not tolerate this competition and Ubers days are probably numbered.  Limo services may be a different story but those reeking dangerous piles of yellow shit driven by Somalis will still be running, of this I have no doubt.

Sun, 08/02/2015 - 22:33 | 6383459 RyeWhiskey
RyeWhiskey's picture

Uber one of the most deceitful multibillion dollar enterprise ever existed.

Reading how seemingly intelligent people are repeating pre-packaged pre-programmed Uber corporate message is nauseting.

You don't get it. it is UBER that is flourishing while breaking laws and evading taxes.

It is UBER that is the MAFIA.

How can thousands small businesses compete with this monstrosity if even laws fail ??

 

Sun, 08/02/2015 - 22:55 | 6383524 r00t61
r00t61's picture

I don't have any love for Uber.

But you repeating pre-packaged pre-programmed state-worshiping government dogma is not any better.

Sun, 08/02/2015 - 23:43 | 6383638 RyeWhiskey
RyeWhiskey's picture

I'm NOT government. I am SMALL BUSINESS OWNER. And unlike Uber multibillion dollar scam - I pay my taxes, I have lawful licensure, I offer proper commercial insurance, I operate LEGALLY and I don't spend MILLIONS of LIES like Uber does.

Cali tech cartel attacking LOCAL governments is serving FEDs. That much is known.

Uber is tryng to create yet another criminal monopoly. I hope it fails and burns to the ground for the total SCAM that it is!

 

Mon, 08/03/2015 - 03:52 | 6383982 StychoKiller
StychoKiller's picture

If ya can't beat'em, join'em!  Nothing's stopping you from becoming a Uber driver, except your Kindergarten notion that life should be treating you fairly by not throwing competition in your path.

Mon, 08/03/2015 - 09:05 | 6384417 yellowsub
yellowsub's picture

So it must piss you off when see an unlicensed lemonade stand...

Sun, 08/02/2015 - 22:49 | 6383505 MeBizarro
MeBizarro's picture

Uber is trying to do what every BS tech company is tyring to do and classify employees as 'independent contractors' to privatize the gains and stick society with the costs. 

What is missing is a new framework to deal with the issues.  Same thing in the late 19th century and early 20th century. 

I'm sure this will get a lot of votes but it will be the same peopl who do also piss and moan about the clout of big money too. 

Sun, 08/02/2015 - 22:50 | 6383506 MeBizarro
MeBizarro's picture

Uber is trying to do what every BS tech company is tyring to do and classify employees as 'independent contractors' to privatize the gains and stick society with the costs. 

What is missing is a new framework to deal with the issues.  Same thing in the late 19th century and early 20th century. 

I'm sure this will get a lot of votes but it will be the same peopl who do also piss and moan about the clout of big money too. 

Mon, 08/03/2015 - 08:08 | 6383681 jimfcarroll
jimfcarroll's picture

[EDITED to remove expletives]
It's ass40135 like you that managed to pass stupid laws to stop "the BS tech companies trying to classify employees as "independent contractors" " that COST ME huge opportunities AS ONE OF THOSE CONTRACTORS. Who the $1u(6 did you think you were helping?

Nothing changed. They STILL hire contractors. They just FIRE THEM BEFORE 18 months passes (where the law allows contractors to sue employees for benefits). You stupid totalitarian piece of 541t! You destroyed an industry.

Mon, 08/03/2015 - 09:26 | 6384479 NoBillsOfCredit
NoBillsOfCredit's picture

Stick society? How so? Because the governments want to violate the Constitutions and redistribute wealth doesn't mean they have to.

Sun, 08/02/2015 - 23:46 | 6383644 gwar5
gwar5's picture

I think UBER is a great idea -- what about all those insane progressives who wanted to save the planet from humans? This is car pooling.

Sun, 08/02/2015 - 23:50 | 6383651 chisler
chisler's picture

Pass the toilet paper Hilary.

Mon, 08/03/2015 - 00:08 | 6383682 Totentänzerlied
Totentänzerlied's picture

Doesn't make any quantifiable difference whatsoever, so long as that petroleum continues to be burned for nothing.

It's not longer accurate to say that Americans would sell their unborn children for the sake of their cars, because they started doing that two generations ago.

Mon, 08/03/2015 - 00:14 | 6383690 snblitz
snblitz's picture

Independent contractors pay taxes more or less quarterly. Employees pay
taxes more or less bi-weekly.

Someone does not like to be cut out of the extra interest, though I suppose
that interest is not much these days.

Independent contractors can decide not to pay taxes if they do not
want to, whereas employees pay more or less as a condition of employment.

Mon, 08/03/2015 - 09:19 | 6384453 NoBillsOfCredit
NoBillsOfCredit's picture

One does not "derive income" by providing services and charging for them. Although they may be paying protection money, don't legitimize it by calling it a tax.

Mon, 08/03/2015 - 00:22 | 6383706 snblitz
snblitz's picture

Ebay came into existence violating auction laws.  No one seemed to mind.

Mr Gates bought a copy of CPM from a third party and sold it to IBM as MSDOS.  He made a fair mint on that "deal".  No one seems to mind.

What was the old saying?  Something like behind every great fortune is a great crime.

Mon, 08/03/2015 - 00:45 | 6383749 LetsGetPhysical
LetsGetPhysical's picture

We used to have a name for "Uber".... GYPSY CAB.

Mon, 08/03/2015 - 01:21 | 6383827 Bunga Bunga
Bunga Bunga's picture

Calm down, the corrupt politicians just heard of the $50bln valuation and now they want their fair share.

Mon, 08/03/2015 - 08:33 | 6384014 elstrom
elstrom's picture
Hong Kong Taxi Dash Board.jpg
Beyond Uber long time ago in Hong Kong. To be efficient they haven a phone for each app.
It’s about bypassing Hong Kong Taxi regulation, that I believe regulate a Taxi can only be connected to one ordering central. And having a row of numbers for direct booking. Uber is just another 1% exploration of the precariat.
The stiffer NY Taxi regulation was introduced in the 1930s depression. The streets where flooded with taxis here drivers literally did fight over customers.
In general Taxi is a business with fairly low capital and knowledge threshold, it have a tendency to get more supply in bad times an less in good times when it’s easier to find a decent job where you doesn’t have to sit in a car 13 h a day waiting for customers.
Mon, 08/03/2015 - 09:22 | 6384462 NoBillsOfCredit
NoBillsOfCredit's picture

With that syntax you must be a taxi driver...:-)

Mon, 08/03/2015 - 04:45 | 6384024 sagitarius
sagitarius's picture

zionist slut and murderer.

Mon, 08/03/2015 - 05:37 | 6384066 Jersey_Mountaineer
Jersey_Mountaineer's picture

Taxi unions got what they deserve.  Their service sucks, cars are dirty, drivers are curt, and a lot of them can't even drive.  I rarely use anything other than subways or my own car when going into NY, but after using Uber once last year, I'm sure as hell never getting another taxi.  Uber kicks their ass in every possible way.

Mon, 08/03/2015 - 05:48 | 6384078 Jack Daniels Esq
Jack Daniels Esq's picture

HRC outsourced her only white house job to Monica - dyke bitchez

Mon, 08/03/2015 - 09:01 | 6384406 d edwards
d edwards's picture

progressive dems and repubs do not like actual free markets.

Mon, 08/03/2015 - 08:15 | 6384289 djsmps
djsmps's picture

Uber shilss are out in force here. I imagine the same thing happens on any forum where it is discussed.

Mon, 08/03/2015 - 09:07 | 6384421 Hope Copy
Hope Copy's picture

question is, are the Uber drivers operating with commercial driver's licenses?

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