Uber And Lyft Avoid Going Dark In California: CNBC After Hours

Yeah to mad that the model: "just pay your worker the absolut Minimum" is outlawed and does not work anymore

The courts were right. Of course, they are employees. I would hope that's obvious to all normal people. Not paying for benefits is one of the bigger reasons why there is so much inequality in America. As the French learned in the early 1800s, concentrating wealth usually doesn't end well. Unless something changes, and soon, the end result will be the same in America.

@@americanexpat8792 Let's see how all these UBER drivers get quickly find employment. lol.
This is a typical example of making a hole in the plate that feeds you.

@@savejeff15 they're paid what they agree to, if they don't like it they can get another gig. Are we supposed to pay benefits for roofers because they are contractors? Or cover medical for babysitters? Bottom line is if it's a gig its a gig, people can work as many or as few hours as they want.

Jon Jeskie
Technically, yes. This also extends to babysitters who also known as nannies.

Anon I agree, the government should’ve never stopped regulating them, $400 a ticket to bring a backpack and have my knees to my chest. But now who needs who? It’s pretty similar to the “I’m hungry but I don’t want to eat what you cooked.” Then you must not be that hungry.

WOW. Never fly again in modern America? Passenger Airlines have not made real money or profit since the airplane was invented. If we feel the Post office and mail is an essential need for America, why not flying and transit? No, I don't want the U.S. Air Dept. that would be as much a looser financially as the P.O., but there should be some thought in NOT allowing airlines to "go away" with some U.S. support.

They're are in too much debt, without a bailout, it would be the employees who suffer not necessarily the shareholders. Because if the airlines sell, the Profits would go to shareholders after debts and expenses are paid. But if a few of them were selling at the same time, it would drive value down because of supply and demand.
The Debts would be paid, then the shareholders will take whatever is left over or share in the loss. Even if they took a MASSIVE loss, it would be a tax write off for the next 2 decades. The rich would still come out on top here. Meanwhile the employees get laid off, furloughed, benefits reduced, or pay reduced.
The sale of an airline would either be to a competitor or an international buyer. The government wouldn't want that if it's an American company. In fact the government is needed to approve large sales just between American companies.
Believe it or not the big government bailouts are for THE PEOPLE not corporations. (Some corporations use bailouts in ways they shouldn't, won't deny that).
But a bailout is The government attempts at trying to curb umeployment and long term damages of major corporations shutting down.
If an airline workers get laid off, they won't have money to buy stuff, pay their bills or debts. That will negatively affect retail because of less sales, utility companies and even worse banks.
That will in turn stop the flow of money eventually leading to someone else in another industry getting laid off. If airlines can't operate because of no employees then then airplanes won't require as much fuel, meaning less sales in oil, oil prices go down more people get laid off. They spend less, other people get laid off because they are spending less.
The literal only thing keeping this country together is the economic stimulus package, 0% interest from the feds and the forebearances. We would be eating some serious S**t in this country right now if it wasn't for those.
Houses would be going into foreclosure at a rapid pace and flood the market. That will in turn decrease the value of other homes in the area. Destroying equity that homeowners have built, because they would be upside down on their mortgage. It wouldn't make sense for them to stay in the house or continue to pay on it. They would owe more on the house than what it's worth. So they will abandon it. Banks would spike interests for new home buyers making it impossible for them to buy homes. Here is what would result
Foreclosure and abandon homes would mean the banks aren't getting their monthly payment. Which is actually YOUR money they lent to other people by the way.
No one would buy homes because interest rates would be too high and too strict requirments.
You're going to want your retirement fund, but it's gone. The banks don't have it because it was loaned out to developers to build neighborhoods.
Developers can't pay the bank back because no ones buying houses, because the bank won't lend... The developers fire the contractors and stop buying supplies to build houses Homedepot goes out of business, the cycle continues and And BOOMMMMM.
This is why companies need bailouts, they pay it back eventually if they agree to take it. The government does nothing for free, not even those rescue efforts you see them do internationally.

iPhone XI S Max Ultra!

The rich economy feeds the poor economy

@@brkbtjunkie it feeds itself

Anonymous Joker not so. The majority of my clients, as an independent contractor, are upper middle class. Think of it this way. Guy wants a mansion built, that means he has to pay someone else to build it, giving tons of people income for a year. Guy starts his own company with his initial investment, giving people income for years if not decades. Guy wants a yacht built, gives people income to do so... and thus it trickles down.

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Big facts

but uber needs to make money too

Drivers should take more of the lion’s share of what customers pay for so many reasons including the risk of using your own vehicle.

@lonestar fun-What % do you get now?

@@dhenson9235 so go on. create a new company, pay 90% for the drivers and everybody will drive for you.

well uber or lyft should be a part time leftover time thing. i see what u mean but its supposed to be a gig type of business. kinda like fiverr.

That's what they are planning, but there is a vote in November which may allow them to continue operating.

Saul Goodman not true. You don’t know what model will look like yet. And it’s a shame that it took so much pushback to give drivers basic improvements like they are rolling out now.

they just need to go back to percentage pay. Screwed the drivers over the way it is now.

jagsfanrick but both companies are still currently losing money.

@@johnl.7754 can't be that bad as the CEO of Uber makes 45 million a year.

California?

Surge pricing

@@CoronaTheVirus yes

@@juancena1117 this was 15 minutes apart that I was getting a price. It came out at 13-16$ then I checked again 20 minutes later it was 33$ so I waited 30 min it went to 13$ again. I booked it. Driver canceled while I was waiting to be picked up.

@@juancena1117 what's Surg pricing?

lol red pink mustard

Cost that comes with it will be too great. Sick day. Health care. Etc. Wouldnt be sustainable without substantial increases.

They actually lose money the only way they stay afloat is because investors keep adding money so if the had to pay benefits it'd be over for them

Because Democrats are not about creating jobs ...they destroy them...😂😂

Exactly. Could you imagine if all the sellers on ebay and Amazon demanded to be employees with health insurance and paid time off? That's stupid. Shxt is ridiculous!

Uber and Lyft's business model is based on exploitation and not paying the real costs of owning and running a vehicle for hire.
And it exploits people's inner cheapskate. People dont like to pay the real cost of things. Taxes. Tips. Etc

@@lakorai2 lol you are missing the point entirely. Your comment indicates you didn't read what I said at all, and you are simply repeating the propaganda slogan fed to you. Furthermore you can't be exploited, if all the power to cut them off is in your hands. The less powerful party cannot exploit the more powerful party.

as a driver i understand, the other day took someone ...cost him $18 and i got $6.52. How is that fair to either party. They used to pay percentage and they wouldn't charge that much.

@leicanoct you just can't go out and start an Uber or Lyft service unless you have very deep pockets so that is unrealistic.

@leicanoct not worth it here. This is a tourist place and without that it's just competition.

Sounds like a depessing family BBQ

lol yep fed is funding others taking your tax money and debt backed stimulus to someone else lmao you do not need government

Good analogy john

Ah Popeye and Wimpy, still relevant after all these years!

I do it to earn money.

They don’t make any profit.

@@jackriley9874 are you real?
Every real person has calculated out their real income at above $10 an hour, and that's using accelerated depreciation schedules for vehicles.
Everyone would be paying for insurance anyway, and no one is dumb enough to forget to calculate the cost of gas

WHAT? how can a company with so little overhead taking upwards of 40% per ride not be making money??? its sounds like poor investments, management and infrastructure that needs to be pushed out.

Brooke B Profit. They make revenue.
Edit: a lot of these tech companies that get tossed around in our faces lately struggle to make a profit. Reddit. Airbnb. KRplus. Twitter just recently recorded a profit a couple of years ago I believe. Lyft. Uber. List goes on and on. They make revenue because they’re popular but struggle to get over the hump especially before clones come along.

Both Uber and Lyft trying to monopolize in the space end up throwing money into ad's and driver sign up bonus. Driver make the first few bonus and once those are gone they find out how crappy the business model is being a Uber/Lyft driver. But they likely already locked into some kind of investment for becoming a driver. They either call it a lost and get out or just hang in there hoping things would change. At the same time, more new driver flood in for the signup bonus and the vicious cycle continues. At the end of the day, the winners are top executives from the two companies, the ad agency, commercial insurance companies for some regions, maybe the rider to some extent (at least the big city taxi cab now provides slightly better service and newer cars instead of crown vict). But most people who you think are making the money, is not.

Me too

@if it ain't foreign it's borin She looks Greek or Italian. That's my best guess.

No cap, she’s so pretty

Dave the Uber Slave Wouldn’t be surprised, her last name is a Spanish word.

@@EddyGraphic I just looked it up LOL it's most common in Greece so at least now I know her family will never approve of me because I'm not Greek

You can get a sense of real unemployment by the workforce participation rate. It was at a previous high before the covid panic. There is also going to be a huge demand post panic. It should tick back up.

Erik Beier Interesting. I have a consumer cellular flip phone & retired at age 44.
But, WTF do I know, right ❓😂
Ha Ha Ha 😐

ill be honest, i can't live without lyft right now...what a lifesaver.
Hailing a taxi just isn't practical in a lot of situations, and it's now a relic of the past.
And like you said, i will pay the equivalent to a taxi, because of that convenience. I want the best for the drivers because they deserve it and its a nice system where everyone benefits, myself included, especially if the rides remain cheap.

Do you mean all the stimulus money is headed to stocks?

They don't? Saying 25% don't pretty clearly says *75%* of them *do.* Pizza delivery companies have been using the independent contractor dodge for decades - many claim the drivers don't work for them, so they get to salary from the company and only get the delivery charge and tips. A side effect of this is no liability when the driver has an accident on the job, and a healthy chunk of them are not insured or under-insured.

Bread Garlichouse ik but they should create an option where they work the full hours of a regular job

Depends on how you're defining wealthy. If you are under 25 years old, you're in the top 10% of your age group if your assets total $65k. At 35, you make the cut with $260k. At 45, you need a net worth of $720k.

E Brown to be considered wealthy, I think you have to have more then 2 million. That according to some bs survey. To be considered wealthy is probably half of that.

That's not good news. The regular cabs were rip offs

He not dead yo rip means rest in peace zaaaaam

If they had to do it then they would rather operate in 49 states. Because they already don't make money so you wan't them to fork over more money. No thanks.

@@NPAMike A company does not get to cheat because it does not make money. If it cant operate fairly and be profitable then we call that being out of business. That's what would happen with any other legitimate company

@@kokalti These people are gig workers no reason why they should get benefits of a full time employee. Most choose operate during peak hours or drive for other companies like Doordash, Grubhub and others. It's not like they drive for Uber and or Lyft alone.

@@kokalti Uber and Lyft already have full-time employees. The drivers however are independent contractors. Do you pay full-time and benefits for a babysitter? Or a roofer? Or your plumber? If it's a gig its a gig, stop trying to make it something it's not.

@@jonjeskie5234 By that logic any job can be called a "gig". You hire a roofer and pay them lots of money. They then have employees that do the work. Those employees have benefits and a decent pay. That's not at all how it works with Uber. Or how about a UPS city driver that gets $40+ an hour plus benefits. He is not smarter than that Uber driver. You want to make his job a gig as well and make him an "Independent contractor" making $20 an hour with no benefits? That's what Amazon is trying to do. You have to understand that if we go down this road a lot of people will end up with crapy low paying jobs with no benefits. Don't just think about yourselves.

mY FRIENDS SAID TO FIGHT YOU

She isn't. She's at home. Her outfit is pretty spicy for a news program lol. She's got some traps to. She must have been an athlete.

My thoughts exactly

I have an 8....+!!!! Hahaha

I still use iPhone 6. It’s OK for every day to day job.

He not a trend chaser thats why 🤷‍♂️

Yeah they would have to go bankrupt or screw the customers by jacking the prices up to taxi levels

420 Friendly Cry or do something about it. I’m in the tech business. New ideas are being created daily. Go figure it out. Or cry and think that there’s no way to compete.

If you watch the video @420 Friendly you'll see that one quarter of drivers want to be contractors

@@DavetheUberSlave it's a contractor gig. Why apply to be a contractor if you want to be an employee? Don't apply for a gig then

lol I would hate to work for you with that comment...but your right I would kick your ass after I left my job or tried to go above you to make the employee as happy as I could to increase the attractiveness of the company and its overall goals to make money...your comment makes me sick!

@leicanoct but when the regulations don't make sense? A gig is a gig. You shouldn't be forced to pay your babysitter or your dog walker Healthcare and benefits either regardless of how many hours they work. It's their choice and it's a gig.

@@jonjeskie5234 true I would never pay my hookers beyond a few dollaz 💵

@@bigskinflutelol6770 if they are not on a set minimum number of full-time hours why would they receive full-time benefits? They come and go as they please so if they work more than full-time that's literally their choice. Like I said this could be applied to a lot of other gig workers who could claim they need benefits too.

@leicanoct read my above 🙄

What will crash first dollar the economy or the stocks or gold

A company telling you that you are not free, imposing limitations not stipulated by the law or AB5 in retaliation, and bully tactics of taking away the app because they refuse to guarantee basic protections to drivers...it never was freedom, its a gilded cage until we actually become "independent contractors" by law, which is all that the bill is nothing more, hope you read it and can see corporate double talk that they have weaponized as disinformation about the companies requirements versus what they say they are forced into doing.

if Uber/Lyft moves out of Cali, all those drivers can get a job with Taxi companies if they want to continue driving. They will have benefits, more reasonable pay and won't have to wear out their own car and pay for its maintenance.