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Re:Uber and Lyft ordered by California judge to classify dri... by JMTQp8lwXL on Monday August 10, 2020 @06:06PM (#24114581)
Some things, like not being able to set their own rates, meant drivers were never contractors, even if they wanted the perks of contracting (e.g, choose your own hours). Saying 'I wish to be a contractor' isn't legally sufficient: the agreement needs to permit setting rates.
Re:Uber and Lyft ordered by California judge to classify dri... by jedberg on Monday August 10, 2020 @06:26PM (#24114808)
Not all contractors set their own rates. Sometimes they bid on an already published rate. Which is what happens here. Uber/Lyft tell you what you will make before the ride starts.

If you accept, you just set your own rate.

Re:Uber and Lyft ordered by California judge to classify dri... by MAGZine on Monday August 10, 2020 @06:30PM (#24114845)
except uber/lyft will remove you from the platform if you decline too many rides, thereby only giving the illusion of choice.
Re:Uber and Lyft ordered by California judge to classify dri... by kbenson on Monday August 10, 2020 @06:39PM (#24114936)
And maybe if you keep signalling to a company that you want to do contract work for them but never submit any bids for what they put out as jobs, they'll start ignoring you as not serious.

Being a contractor doesn't mean you get to pick where you work, it means you get to pick where you work out of the people willing to hire you for contract work. Many companies have different criteria for what they require out of contractors. I don't see this as all that different.

Re:Uber and Lyft ordered by California judge to classify dri... by baddox on Monday August 10, 2020 @07:55PM (#24115664)
> And maybe if you keep signalling to a company that you want to do contract work for them but never submit any bids for what they put out as jobs, they'll start ignoring you as not serious.

Okay, but none of this is about people who wanted to do work for Uber but didn't. This issue is about people who did in fact do work for Uber. If you never submit any bids and never do any work, you're neither a contractor nor an employee.

Re:Uber and Lyft ordered by California judge to classify dri... by kbenson on Monday August 10, 2020 @10:44PM (#24116686)
Well, this specific tangent is about whether Uber drivers are like contractors in that they get to choose their jobs/rates or aren't. Specifically, I was responding to:

>>> except uber/lyft will remove you from the platform if you decline too many rides, thereby only giving the illusion of choice.

I don't see any real difference to that than to someone who was is contractor and maybe did some work, but hasn't responded in a while and the company removes them from the list of people they notify (and fast-track) for bids. If I'm at a company and I have a couple preferred contractors and one hasn't even bothered to reply to my the last few times I contacted them, maybe I'll lose faith in them being responsive while they're on the job.

Any contractor relationship is a two way street. If either side doesn't maintain the relationship, the other side may choose to alter it or cut if off entirely.

Re:Uber and Lyft ordered by California judge to classify dri... by ummonk on Monday August 10, 2020 @08:43PM (#24116013)
Turning down a ride request is not the same as not submitting a bid.
Re:Uber and Lyft ordered by California judge to classify dri... by kbenson on Monday August 10, 2020 @10:49PM (#24116704)
I would say it's the equivalent of going through the process of jumping through hoops to be a contractor at a company, maybe doing some jobs (or not), and then failing to respond at all if they send some work your way. If you show yourself not responsive to their time constraints, they very well may decide it's not worth notifying you of work items, and ignoring any bids you submit.

Contract work is all about trust. If you show any behavior that makes you look less reliable, are they going to trust you with work? Flipped around, if the company doesn't respond to requests for payment, are you going to want to do work for them? It works both ways.

Re:Uber and Lyft ordered by California judge to classify dri... by fastball on Monday August 10, 2020 @08:53PM (#24116085)
Why not?
Re:Uber and Lyft ordered by California judge to classify dri... by ummonk on Monday August 10, 2020 @10:03PM (#24116481)
It's equivalent to submitting a lower bid.

(The point is moot though because apparently Uber rolled out a feature that allows drivers in California to set their rates).

Re:Uber and Lyft ordered by California judge to classify dri... by fastball on Monday August 10, 2020 @10:07PM (#24116504)
A town wants a bridge built. They set a maximum price. Three contractors submits bids. They are all at the maximum price – instead the contractors differentiate themselves based on quality of previous work and distance to the construction site.

A fourth contractor thinks the price is too little and rejects it outright.

The fourth contractor has "submitted a lower bid"?

Re:Uber and Lyft ordered by California judge to classify dri... by ummonk on Monday August 10, 2020 @10:13PM (#24116540)
The fourth contractor submits a bid above the minimum price.
Re:Uber and Lyft ordered by California judge to classify dri... by fastball on Monday August 10, 2020 @10:21PM (#24116575)
Yes, sorry, I misspoke (edit: actually, I think you misspoke in your previous comment, and then I copied the mistake).

But no, the fourth contractor did not submit a bid at a higher price. They did not submit a bid at all.

Re:Uber and Lyft ordered by California judge to classify dri... by ummonk on Monday August 10, 2020 @10:48PM (#24116702)
Ah yes, indeed I did.

I see your point too. Essentially, rather than contractors proposing prices and then clients accepting or moving on, if clients propose prices and then contractors accept or move on, it's still a market with negotiated rates.

Re:Uber and Lyft ordered by California judge to classify dri... by subsaharancoder on Monday August 10, 2020 @08:25PM (#24115882)
> except uber/lyft will remove you from the platform if you decline too many rides, thereby only giving the illusion of choice.

Factually incorrect for Uber drivers in CA, the platform no longer penalizes drivers for declining trips and now allows them to pick and choose trips without any impact on driver rating. (I worked in Uber Eng up until the 5/18 layoffs)

Re:Uber and Lyft ordered by California judge to classify dri... by Jommi on Tuesday August 11, 2020 @02:26AM (#24117676)
This is the bigger problem. None of the people even here on HN actually now how Uber works and how different the experience for rider and drivers can be varying on city, state, country etc. Just a bunch of people repeating what they hear from anti-tech journalsits writing about startups.
Re:Uber and Lyft ordered by California judge to classify dri... by subsaharancoder on Wednesday August 12, 2020 @01:35PM (#24134534)
Uber app is very hyperlocal because each location has different requirements/challenges especially around fare calculation, taxes and levies, how the app works in CA is very different from London and different from New York. The Driver app in CA was reworked on extensively during Q4 2019 in response to AB5 in order to strengthen the Uber case that it is essentially a platform that matches riders to drivers. Internally those changes can be rolled out to all cities in the U.S. if the AB5 tide goes beyond CA, but to be honest no one knows if those changes will make the case for Uber or not, they are the proverbial canary in the coal mine.
Re:Uber and Lyft ordered by California judge to classify dri... by Jommi on Wednesday August 12, 2020 @04:42PM (#24136703)
Yep. Though is it still true that the prices for riders and the earnings for drivers are seperated? To me that is the key greediness here.

At least in Europe all competitors still work with the % of fare calculations.

Re:Uber and Lyft ordered by California judge to classify dri... by MAGZine on Tuesday August 11, 2020 @02:10AM (#24117599)
Thank you for the clarification—I'd edit my comment if I could.
Re:Uber and Lyft ordered by California judge to classify dri... by skybrian on Monday August 10, 2020 @06:37PM (#24114910)
It seems like changing that would be an easier and less disruptive fix?
Re:Uber and Lyft ordered by California judge to classify dri... by TeMPOraL on Monday August 10, 2020 @06:47PM (#24115004)
Imagine the fun metagames this would cause. If the government took Uber's stick away, the company would be forced to find a rate at which they'd have enough drivers to allow for reasonably short pickup time. Drivers then could, over their local "$city Uber drivers" FB/WhatsApp group, agree to not take any ride below $X, thus forcing Uber to raise their rates to $X (+ Uber's cut).

(While dropping drivers from the platform if they refuse too many rides doesn't make such collusion impossible in theory, it introduces enough individual risk to make such coordination unlikely in practice.)

Re:Uber and Lyft ordered by California judge to classify dri... by fernandotakai on Monday August 10, 2020 @07:21PM (#24115354)
>Drivers then could, over their local "$city Uber drivers" FB/WhatsApp group, agree to not take any ride below $X, thus forcing Uber to raise their rates to $X (+ Uber's cut).

drivers already have those groups btw. they use to coordinate a LOT of stuff. i've seen a driver on a huge whatsapp group where they basically tried to set some areas to surge so they could earn more money.

Re:Uber and Lyft ordered by California judge to classify dri... by mullingitover on Monday August 10, 2020 @09:10PM (#24116197)
They've pulled this stunt at LAX before. I got off the plane and suddenly all the Uber rides were over $100. Googled around and apparently this was a game they were playing to drive up rates.

I took a flyaway to Union Station and then got an Uber from there for $15.

Re:Uber and Lyft ordered by California judge to classify dri... by ClumsyPilot on Monday August 10, 2020 @10:10PM (#24116526)
> "the company would be forced to find a rate at which they'd have enough drivers to allow for reasonably short pickup time."

Oh the humanity, how will they manage? They only have like the entire dataset of all rides ever taken plus a world class data science team plus a ton of market power. Will they be able to negotiate on equal footing rate with cab-drivers?

Re:Uber and Lyft ordered by California judge to classify dri... by xyzzyz on Monday August 10, 2020 @06:58PM (#24115111)
There is no stick; they already have to do that. If the drivers don’t like the rates and think they earn too little, they quit. Uber has to ensure that drivers make attractive rates if it wants retain them. And indeed, it offers lots of bonus pay, special deals etc precisely for that reason.

> Drivers then could, over their local "$city Uber drivers" FB/WhatsApp group, agree to not take any ride below $X,

This is, of course, illegal.

Re:Uber and Lyft ordered by California judge to classify dri... by drusepth on Monday August 10, 2020 @07:04PM (#24115176)
>> Drivers then could, over their local "$city Uber drivers" FB/WhatsApp group, agree to not take any ride below $X,

>This is, of course, illegal.

What law does this break?

Re:Uber and Lyft ordered by California judge to classify dri... by poizan42 on Monday August 10, 2020 @07:23PM (#24115374)
In the US, I think it's Section 1 of the Sherman Antitrust Act. It's referenced from the Wikipedia article: https://en.wikipedia.org/wiki/Price_fixing
Re:Uber and Lyft ordered by California judge to classify dri... by sudosysgen on Monday August 10, 2020 @07:56PM (#24115676)
I'm, to say the very least, not sure that the Sherman Anti-trust Act prevents collective bargaining.
Re:Uber and Lyft ordered by California judge to classify dri... by fastball on Monday August 10, 2020 @08:52PM (#24116080)
Given that the price in question is put on consumers and Uber only takes a cut, this indeed sounds more like price-fixing than collective bargaining.
Re:Uber and Lyft ordered by California judge to classify dri... by sudosysgen on Monday August 10, 2020 @09:18PM (#24116250)
Collective bargaining is always price fixing on the price of labour. So is the minimum wage. It also explicitly legal, and generally good for the common person.

In general, price fixing of the cost of labour is only found to be illegal price fixing when the people fixing the price are not (or not only) employees/workers. Which isn't the case here.

Re:Uber and Lyft ordered by California judge to classify dri... by fastball on Monday August 10, 2020 @09:23PM (#24116271)
Collective bargaining applies when you are demanding things from an employer. But in this case, drivers colluding to not accept ride-shares under a certain price would be demanding a price from the consumer (which again, ride-share companies are only taking a fraction of, so it really is a price-fix on the consumer). And under such a scenario where that was allowed by the Ubers/Lyfts of the world, drivers would certainly be private contractors, and therefore business entities in their own right. So price-fixing.
Re:Uber and Lyft ordered by California judge to classify dri... by sudosysgen on Monday August 10, 2020 @09:33PM (#24116320)
Two things.

Firstly, if you consider that Uber is only an intermediary and nothing else, then the consumer is the employer. Making this collective bargaining, Employers are consumers in the labour market. Price fixing is always against the interests of a pure consumer, including collective bargaining. Unions are beneficial because (and only if) the vast majority are workers much moreso than consumers.

Secondly, as we have seen, since the money is paid to Uber, and Uber decides how much the rides cost and to who they are assigned when, as well as the fact as Uber pays drivers, and in combination with the fact that drivers are the core business of Uber, they are indeed employees, and this is collective bargaining.

In both cases, it is collective bargaining. If the consumer is the rider, and they directly pay with a cut to Uber the fare, as well as decide the price they are offering and control how the ride goes, then the driver is the employee. In the real world and according to California statute, the driver is the employee (of Uber).

Therefore, it is collective bargaining.

Re:Uber and Lyft ordered by California judge to classify dri... by fastball on Monday August 10, 2020 @09:47PM (#24116397)
So if you live in a town with three welders, and those three welders come together and agree that they will not ever weld for below $X/h in the town (which is significantly above market price of nearby, equivalent towns), then that is not price-fixing, because the people that want welding services are suddenly "welder employers" because they are buying a service? I... don't think that's right.

The price of rides is determined by the market. Uber arguably has the least say of the three stakeholders – their goal is to merely "make the market". Riders demand low-prices, drivers demand high ones. Uber doesn't really "choose" a price, they just find the happy medium that the market demands.

Uber pays drivers in the same way that Stripe "pays" me when I make a sale of my app – that is to say, not at all. Stripe pays me, but they are clearly not my employer. Uber is collecting payments and then disbursing them, as literally any marketplace does. Does Steam "employ" all the game developers that sell on their platform? Does Etsy employ all the independent makers? Apple's App Store? Twitch? Amazon? Patreon?

The core business of Uber is an app/marketplace for transport, not drivers. This is obvious when you consider the fact that Uber also provides things like scooters and e-bikes through their app (and in London, now boat services!), which obviously don't involve mostly independent driver-contractors.

To compare this to Steam again – the core business of Steam is not "game developers", even though their core business would not exist without game developers. Their business is a marketplace. I actually really like the Steam comparison because it literally ticks all the same boxes you are ticking for Uber: they set prices, accept/disburse payments, and wouldn't exist without 3rd parties and their labor. But nobody is claiming that Steam should start paying health/holidy/etc benefits for all the indie game developers that sell games on their platform.

Re:Uber and Lyft ordered by California judge to classify dri... by ClumsyPilot on Monday August 10, 2020 @10:05PM (#24116494)
The example with welders would work if there were consumers individually bargaining with each welder / driver. However prices are set by an opaque algorithm, and I as a consumer or as a driver cannot actually control the offer, or offer more/less. In this context, I believe the algorithm/Uber is the one doing price fixing in real-time, and the drivers are merely trying to reign it in.
Re:Uber and Lyft ordered by California judge to classify dri... by sudosysgen on Monday August 10, 2020 @10:26PM (#24116602)
>So if you live in a town with three welders, and those three welders come together and agree that they will not ever weld for below $X/h in the town (which is significantly above market price of nearby, equivalent towns), then that is not price-fixing, because the people that want welding services are suddenly "welder employers" because they are buying a service? I... don't think that's right.

There is a huge difference between this and an Uber driver. All Uber drivers are commodified, there is no distinction between them outside what Uber itself does. Uber's drivers have no control over how they do their job. Uber's drivers have no control over the fares they charge outside accept/refuse. If the three welders were indistinguishable from each other, and all had the same entity decide vast amounts of how they do their job and for how much, then yes, it would be simply collective bargaining.

Once again, there is massive strawman going on here that you are perpetuating. I'm not saying that it isn't price-fixing. All collective bargaining is price fixing. All of it, without exception. As a society, we allow workers to engage in price fixing because workers have very low individual power and it is in our collective interest for workers to negotiate together. That is the point I'm trying to get across. All square are rectangles, not all rectangles are squares. All collective bargaining is price-fixing, not all price-fixing is collective bargaining.

>The price of rides is determined by the market. Uber arguably has the least say of the three stakeholders – their goal is to merely "make the market". Riders demand low-prices, drivers demand high ones. Uber doesn't really "choose" a price, they just find the happy medium that the market demands.

This is ridiculous on its face. Unless there is a mechanism on Uber for drivers to bid on rides, then fare prices are not fair market prices negotiated between drivers and riders, but instead prices decided between Uber and riders. Uber very certainly chooses a price, and the riders don't. They do not participate in market pricing any more than a factory worker threatening to quit their job contributes to increasing the price of a widget. Most importantly, Uber does not allow the drivers to even know the actual price the riders pay, so this is just ridiculous.

>Uber pays drivers in the same way that Stripe "pays" me when I make a sale of my app – that is to say, not at all. Stripe pays me, but they are clearly not my employer. Uber is collecting payments and then disbursing them, as literally any marketplace does. Does Steam "employ" all the game developers that sell on their platform? Does Etsy employ all the independent makers? Apple's App Store? Twitch? Amazon? Patreon?

If Stripe told you exactly which app to make and how, and did not let you explicitly state which price you would sell the app for, and did not even let you know which price consumers were paying, had a variable cut that is obscure to you, did not let you market your apps individually, and only gave you the option to either make the app or not, then you would be an employee of Stripe, yes. If Steam told you which app to make and how, which price it would give you, didn't tell you how much they would charge customers, and didn't differentiate you from other gamedevs then yes, you would be an employee of Steam. Rinse and repeat.

The core business of Uber, in revenue and valuation, is 100% to provide rides for people. Scooters and bikes are a drop in the bucket, and technically come from an acquisition and thus are not a core business. This is like saying that the core business of Apple isn't to make iPhones, it's connect consumers with engineers and factory workers that make phones. Except the consumers don't choose which engineers make them, how much they are paid, or even really differentiate them before paying at all.

>To compare this to Steam again – the core business of Steam is not "game developers", even though their core business would not exist without game developers. Their business is a marketplace. I actually really like the Steam comparison because it literally ticks all the same boxes you are ticking for Uber: they set prices, accept/disburse payments, and wouldn't exist without 3rd parties and their labor. But nobody is claiming that Steam should start paying health/holidy/etc benefits for all the indie game developers that sell games on their platform.

Steam does not set prices. Steam lets the gamedevs/publishers decide of they price they want. Steam lets you market yourself. Steam does not tell you what game you should make (what route you should take), they do not tell you which programming languages you can use (which cars you can use), and does not rely on contractors for its core business (Steam does not rely on one-person indie game developers for their core business). Steam is incomparable to Uber. The idea of why Uber doesn't let you use any car, by the way, is in order not to damage their brand. Because you, as a driver, represent Uber, and they know it. In a way, your most important asset, Uber's brand, is not owned by you but by Uber - you then generate profit from someone else's capital for a wage - an employee.

Re:Uber and Lyft ordered by California judge to classify dri... by fastball on Monday August 10, 2020 @11:08PM (#24116791)
1. Uber drivers are not commodified. There is in fact a difference between drivers, both known in advance (rating) and during/after the actual trip. I have had very pleasant experiences with some drivers, and very unpleasant experiences with others. The pleasant drivers I tipped extra and gave high ratings. The unpleasant ones I did the opposite.

2. I am not perpetuating a straw man that "all collective bargaining is price-fixing". I am arguing that in this particular case, this is the bad one (price fixing), not the good one (collective bargaining). This is because the drivers (not Uber) have monopoly power in the market. The disagreement is stemming from the fact that you believe that any action taken by "labor" cannot be price-fixing, which I disagree with.

3. "This is ridiculous on its face." It is not ridiculous. This is called supply-and-demand and it actually works quite well for pricing things. If Uber "sets" the price too high, riders will not use the service. If they "set" the price too low, drivers will not want to participate and then you don't have a market. Again, the price is "set" at whatever value riders are willing to pay and drivers are willing to accept. Anything else and the system fundamentally doesn't work.

4. At least in California:

a. you choose which rides you want. you are not forced to take certain rides ("make a certain app").

b. drivers can set prices

c. the Uber cut is not obscure (pretty sure it's always been 30%). The time this doesn't apply is when Uber gives both counterparties a great deal by paying the driver more and charging the rider less and using VC money to split the difference.

d. you can ride for Lyft as well, or be a private car for hire without a ride-sharing app ("market yourself")

e. my option with Stripe is "sell my app using them or not", ditto for Steam. Can I sell it without them? Sure. Just like a driver can sell private car-for-hire services without Uber.

5. You might want to break it to a number of companies that some of their core businesses don't actually exist because they came out of acquisitions. Regardless, that wasn't my point. Investors invested in a ride-sharing app. Uber makes money because they have an app. Without the app (but 1000s of drivers) they would not have a business. They would literally be a cab company. But actually they wouldn't be because they don't have any medallions, which you need if you're not connecting riders directly to drivers with... your app. The core business is definitely the app. That's how Lyft can also exist in the same space with the same drivers. Because their business is in making an app that enables a marketplace for ride-sharing, just like Uber. But it's a different app. But the same drivers. Given your assertions, I guess they're pretty lucky to exist in an industry where you could have 100 competing ride-sharing apps, but because "the drivers are their core business", they will all do just fine because they all have drivers!

6. Most of this is addressed in 4. For the rest of it, you're just tacking on more and more made-up criteria that obviously don't apply. If I hire a guy to mow my lawn, I can stipulate that he uses an electric mower. Maybe this is because I care about the environment, don't like gas fumes, or want to look fancy in front of my neighbors. My reasons are my own and he is still an independent contractor. Likewise, Apple forces you to develop in a certain way for the App Store – still a marketplace. They require you to adhere to certain standards of app design/development – ya know, so you don't hurt their brand. Steam could (does?) do that too, and it wouldn't make them not a marketplace. I also notice you ignored Etsy/Twitch, which most certainly do rely on one-person delivery for their core business.

Re:Uber and Lyft ordered by California judge to classify dri... by sudosysgen on Tuesday August 11, 2020 @01:10AM (#24117346)
>. Uber drivers are not commodified. There is in fact a difference between drivers, both known in advance (rating) and during/after the actual trip. I have had very pleasant experiences with some drivers, and very unpleasant experiences with others. The pleasant drivers I tipped extra and gave high ratings. The unpleasant ones I did the opposite.

This rating is given by Uber only. It is a single number, with nothing else. This is literal commodification, the exact same way that housing or vegetables are com modified following a grade or a rating. When drivers will be able to market themselves and make a case for themselves it will be something else. A synthetic, numerical rating is literally a hallmark of commodification.

>2. I am not perpetuating a straw man that "all collective bargaining is price-fixing". I am arguing that in this particular case, this is the bad one (price fixing), not the good one (collective bargaining). This is because the drivers (not Uber) have monopoly power in the market. The disagreement is stemming from the fact that you believe that any action taken by "labor" cannot be price-fixing, which I disagree with.

I've written about a dozen times. All collective bargaining is price fixing. Your argument that I am saying that it's not or that I am applying an inconsistent standard is literally a strawman.

>3. "This is ridiculous on its face." It is not ridiculous. This is called supply-and-demand and it actually works quite well for pricing things. If Uber "sets" the price too high, riders will not use the service. If they "set" the price too low, drivers will not want to participate and then you don't have a market. Again, the price is "set" at whatever value riders are willing to pay and drivers are willing to accept. Anything else and the system fundamentally doesn't work.

It is indeed ridiculous. It isn't the drivers negotiating with the riders, it is Uber negotiating with the riders. This is absolutely crucial. The driver has only the option to refuse work. This is, quite literally, how being an employee works. You have no input over the price of the good, you can only refuse or accept the job at the price and in a perfect frictionless vacuum your refusal or acceptance is perfectly mirrored in the end price. Which it isn't in practice for endless reasons, and certainly not in Uber where the margin Uber takes is a secret that no one knows and that varies instantly.

>a. you choose which rides you want. you are not forced to take certain rides ("make a certain app").

If you are an employee, you also aren't forced to make a certain app. You can refuse and either be assigned something else (that you didn't decide), or be fired. If you were a developer on Steam for example, you would be able to make any software, in any way you like, and charge exactly how much you like. All things you can't do on Uber. The right of refusal is also key to being an employee. Contractors, in general, have more than the right of refusal - they decide how the job is done.

>drivers can set prices

Only in California, in a transparent attempt to skirt the letter of the law, and only very, very indirectly through a multiplier.

>the Uber cut is not obscure (pretty sure it's always been 30%). The time this doesn't apply is when Uber gives both counterparties a great deal by paying the driver more and charging the rider less and using VC money to split the difference.

Not always! Uber claims that their cut is around 25-30%. You have to trust them, and independent analysis shows that the cut can exceed 50% in some cases : https://arstechnica.com/tech-policy/2019/08/uber-and-lyfts-c.... In any case, the algorithm used to calculate the fare charged to the rider and credited to the driver is different, so there can never be a fixed cut. It is obscure, and you can never know.

>my option with Stripe is "sell my app using them or not", ditto for Steam. Can I sell it without them? Sure. Just like a driver can sell private car-for-hire services without Uber.

On Stripe, you can sell almost anything. On Steam, you can sell any software at all. On Uber, you can only do the specific trip that Uber wants you to do at the price that Uber decided to offer you, and only in the specific route that is calculated, only in the specific allowed vehicles.

>You might want to break it to a number of companies that some of their core businesses don't actually exist because they came out of acquisitions. Regardless, that wasn't my point. Investors invested in a ride-sharing app. Uber makes money because they have an app. Without the app (but 1000s of drivers) they would not have a business. They would literally be a cab company. But actually they wouldn't be because they don't have any medallions, which you need if you're not connecting riders directly to drivers with... your app. The core business is definitely the app. That's how Lyft can also exist in the same space with the same drivers. Because their business is in making an app that enables a marketplace for ride-sharing, just like Uber. But it's a different app. But the same drivers. Given your assertions, I guess they're pretty lucky to exist in an industry where you could have 100 competing ride-sharing apps, but because "the drivers are their core business", they will all do just fine because they all have drivers!

Does Uber not have a contractual relationship with Uber drivers in which they must complete a ride? Does Uber not spend the vast majority of their revenue in this contractual relationship? Then it is core to their business. If Uber's job was only to connect riders to drivers, then the contractual obligation would be between drivers and riders, and not between drivers and Uber. This is as absurd as claiming that the core business of Microsoft is to connect users of operating systems with programmers. It isn't, it's to sell software, because the engineers have an obligation towards Microsoft.

>If I hire a guy to mow my lawn, I can stipulate that he uses an electric mower. Maybe this is because I care about the environment, don't like gas fumes, or want to look fancy in front of my neighbors. My reasons are my own and he is still an independent contractor.

If you hire a guy to mow your lawn, tell him exactly how to do it, specify the equipment with which you do so, and if he has no lawn-mowing practice, then yes he is your employee. Furthermore, you seem to be missing the fact that Uber drivers are contractors of Uber, not contractors to the riders.

Re:Uber and Lyft ordered by California judge to classify dri... by abduhl on Monday August 10, 2020 @09:36PM (#24116335)
That’s an interesting question actually. Can a third party who technically has no say in setting the actual price of a product be said to be engaging in price fixing by refusing to enter into a market, even if done collectively?
Re:Uber and Lyft ordered by California judge to classify dri... by ummonk on Monday August 10, 2020 @08:45PM (#24116033)
The bonus pay and special deals are actually what would make the contractor classification somewhat questionable, even without the California law. Uber is using incentives to try to control its drivers' hours.
Re:Uber and Lyft ordered by California judge to classify dri... by stale2002 on Monday August 10, 2020 @07:12PM (#24115271)
"> Drivers then could, over their local "$city Uber drivers" FB/WhatsApp group, agree to not take any ride below $X,

This is, of course, illegal."

Although I am not 100% certain on this, I think that these kinds of anti-trust laws only apply when certain companies have huge amounts of market power. I believe that certain "anti-competitive" behavior would not be illegal, if done by a whole bunch of small contractors.

The obvious example would be unions that do this. But it is possible that this is a special exception to the law.

Re:Uber and Lyft ordered by California judge to classify dri... by erichocean on Monday August 10, 2020 @06:36PM (#24114906)
How is that any different from Patreon suspending user accounts due to ToS violations? Are companies free to suspend accounts for any reason or not?
Re:Uber and Lyft ordered by California judge to classify dri... by YawningAngel on Monday August 10, 2020 @06:57PM (#24115103)
You are free to fire a contractor for any reason, but if you consistently fire contractors for doing things that you would prefer that they not do but which you cannot mandate they not do because they are not employees, then you undermine the claim that they are in fact contractors.
Re:Uber and Lyft ordered by California judge to classify dri... by totony on Monday August 10, 2020 @07:21PM (#24115349)
If a contractor always overcharge you it seems normal to stop business with him, how is this different?
Re:Uber and Lyft ordered by California judge to classify dri... by ClumsyPilot on Monday August 10, 2020 @10:21PM (#24116574)
If by overcharging you mean billing for more hours than were in fact done, that's fraud and is a different matter entirely.

Obviously you may stop working with a person if their prices are too high or because quality of their work is shit.

However if you use this as a pretence for firing contractors, but the real reason you are firing them is because of their sex / gender / race - that would be illegal.

In the same vein, if you fire contractors for doing things that are none of your business, and it is common knowledge that you do that and exercise control you should not have over them, then a court may decide that in fact the relationship is not that of a contractor. That in fact this is nothing more than a legal fiction created for the purpose of tax avoidance or similar.

Re:Uber and Lyft ordered by California judge to classify dri... by totony on Monday August 10, 2020 @11:48PM (#24116997)
>In the same vein, if you fire contractors for doing things that are none of your business

Like what?

I'm pretty sure you can put all the terms you want in a contractual relationship. Even things that are none of your business (as long as not protected class).

Re:Uber and Lyft ordered by California judge to classify dri... by larksimian on Monday August 10, 2020 @07:13PM (#24115274)
Yeah, but if they suspend you for a certain bundle of reasons then that makes you an employee.

An employee is just a contractor with additional rules.

Re:Uber and Lyft ordered by California judge to classify dri... by wetpaws on Monday August 10, 2020 @07:00PM (#24115128)
The good analogy would be Patreon forcing you to follow specific schedule / backer numbers / revenue figures / working model.
Re:Uber and Lyft ordered by California judge to classify dri... by JMTQp8lwXL on Monday August 10, 2020 @07:06PM (#24115201)
To my understanding, at least for the public sector, is that the government will post a project. Organizations will then place 'bids' (that includes their contractor's price, time to complete the project, a general plan for how the project will be completed), and then the government will choose one of the bids.
Re:Uber and Lyft ordered by California judge to classify dri... by taftster on Monday August 10, 2020 @06:31PM (#24114860)
I get what you're saying, but I don't think "setting their own rates" has anything to do with it. Any driver would be able to set their own rates by going at it alone, completely independent from a ride share company. They would create their own service and charge what they want.

However, because the drivers choose to participate in the Uber/Lyft marketplace and benefit from the network affects that they have created, it follows that Uber/Lyft would have a say in the cost of goods sold in that marketplace. Just because the drivers can't set their own rates doesn't mean they aren't independent contractors.

If I hire you to mow my lawn, we mutually come to an agreement of what time and price you would perform the service. Just because you want to work for $100 / hour doesn't mean I'm willing to pay that. And because I'm only willing to pay a certain price only for your services doesn't make you an employee.

I think it's that simple. Uber/Lyft have a price they are willing to pay for services. They even allow their drivers to pick their own schedule (unlike my lawn service example). Drivers are not setting the price directly with the customers, they are getting paid by Uber/Lyft, but that doesn't make them employees.

Re:Uber and Lyft ordered by California judge to classify dri... by popinman322 on Monday August 10, 2020 @06:37PM (#24114917)
In your lawn care example you used the word "mutually". That is a difference between the Lyft/Uber relationship with drivers and your relationship with the lawn care contractor.

Maybe if Lyft/Uber allowed drivers to bid on rides drivers would become more contractor-esque? But then the latency would be much higher for users. The system would likely also regress to the proposed price, as well, since drivers would likely just accept the price proposed by the platform to save time.

Re:Uber and Lyft ordered by California judge to classify dri... by taftster on Monday August 10, 2020 @06:49PM (#24115022)
You are expecting that Uber/Lyft creates an "auction" environment in order for their drivers to be considered contractors? In my world view, an auction is not requirement for a driver to be considered independent. Drivers can:

- drive on their own schedule - drive for competing ride share services (concurrently even) - drive for themselves - not drive at all

Seems very independent contractor. Uber/Lyft created a marketplace; drivers are agreeing to drive within the constraints of that marketplace. They can also create their own customer relationships and ride share marketplace if they choose.

If Uber/Lyft imposed restrictions on things like who a driver could give rides to or restricted concurrent ride share engagements, then that starts to feel like an employee. Rates have very little to do with it, in my humble opinion.

Re:Uber and Lyft ordered by California judge to classify dri... by afiori on Monday August 10, 2020 @08:29PM (#24115911)
Part of the whole argument is not only whether drivers are technically employees or contractor but also whether Uber/Lyft are stretching those category so much that neither is a good fit for the situation.

As far as I understand one of the problems is that the drivers' market is so saturated that both Uber and Lyft can act as if they where monopolies (or maybe monopsonies). They can technically move to a competitor but that applies no pressure on the market.

Again, what makes this situation tricky is that it is essentially creating a new kind of employement-like relationship that current laws and regulation do not really account for.

Re:Uber and Lyft ordered by California judge to classify dri... by Jommi on Tuesday August 11, 2020 @02:28AM (#24117686)
This is not true, moving to a competitor definitely applies pressure and keep both companies in check.
Re:Uber and Lyft ordered by California judge to classify dri... by afiori on Tuesday August 11, 2020 @06:46AM (#24119014)
This is only true if either company ever risk running out of (good) drivers. As I understand it currently there are more workers than jobs, so if a driver decides to cut ties with one of the oligopsies they are unable to get the same amount of work from the competitor.

So: "moving to a competitor definitely applies pressure" -> true; "keep both companies in check" -> false

Re:Uber and Lyft ordered by California judge to classify dri... by Jommi on Tuesday August 11, 2020 @01:59PM (#24123517)
There are not more workers than jobs, ive worked in the industry and this is a fact. Workers on ridhailing platforms come in varying levels of quality and amount of hours they can supply

You are thinking too much about just workers, when actually the smalelst divisible unit is hours. There is portion of drivers that barely ever switch, and then there is another portion that are constantly looking for the better deal, switching through outh the day. Its a scale.

So to keep drivers happy and on your paltform, you need to implement bonus schemes or have certain base pays.

Im not sure why so many people feel that they can comment on how the ridehailing platforms work without having any real experience in driving for them or working for them.

Re:Uber and Lyft ordered by California judge to classify dri... by popinman322 on Monday August 10, 2020 @07:00PM (#24115127)
It looks like you're correct; the IRS doesn't seem to distinguish based on pay.

https://www.irs.gov/businesses/small-businesses-self-employe...

Re:Uber and Lyft ordered by California judge to classify dri... by afiori on Monday August 10, 2020 @07:25PM (#24115404)
Your argument is right in principle, but it hides a proving-too-much fallacy.

By a similar reasoning one could claim that waiters/factory workers should also be independent contractors. If they don't like the pay in one business they can go work in another marketplace.

By this contrived example I mean to say that your analysis applies only to the superficial structure of the concept of employment. Ultimately social structures are not axiomatic field and should be treated accordingly.

Re:Uber and Lyft ordered by California judge to classify dri... by subsaharancoder on Monday August 10, 2020 @08:28PM (#24115902)
> Drivers are not setting the price directly with the customers, they are getting paid by Uber/Lyft, but that doesn't make them employees.

Uber in CA launched a feature allowing drivers to set their own fares https://www.uber.com/blog/california/set-your-fares/ so there is inbuilt flexibility.

Re:Uber and Lyft ordered by California judge to classify dri... by lawguy on Monday August 10, 2020 @07:17PM (#24115310)
Interesting that you picked "mow my lawn" as an example.

In California, gardeners are considered employees. The only reason most people don't have to deal with employment taxes, payroll, insurance, etc., is because they typically hire gardening companies that actually employ the workers.

https://edd.ca.gov/Payroll_Taxes/Household_Employer.htm

Re:Uber and Lyft ordered by California judge to classify dri... by taftster on Monday August 10, 2020 @07:30PM (#24115447)
Yeah - and admittedly I don't know California law at all. So it could very well be the State of California looks at this differently than other states and possibly different than the IRS, which might be throwing me (and maybe others) off.

Thanks for the link, that's interesting.

Re:Uber and Lyft ordered by California judge to classify dri... by ClumsyPilot on Monday August 10, 2020 @10:29PM (#24116617)
> "However, because the drivers choose to participate in the Uber/Lyft marketplace and benefit from the network affects that they have created, it follows that Uber/Lyft would have a say in the cost of goods"

I can participate in Ebay / Amazon marketplace, and I can set any price I want if I decide to sell my TV there. They take their commission, and provide some conflict mediation.

Re:Uber and Lyft ordered by California judge to classify dri... by rdgthree on Monday August 10, 2020 @06:23PM (#24114771)
This is certainly the (fairly robust) legal argument. My hesitation is that I think a significant amount of drivers prefer and would benefit from the arrangement that Uber and Lyft have set up, and it's a shame that we aren't discussing how to write legislation to fit those people in.

It just feels like forcing everyone to be an employee will box out a large number of happy part-time drivers who weren't too concerned with setting their own rates.

Re:Uber and Lyft ordered by California judge to classify dri... by dahfizz on Monday August 10, 2020 @06:35PM (#24114898)
I agree. I think the "gig-economy" is clearly a third type of worker - not quite and employee and not quite a contractor. It makes sense to embrace that and make sure everyone benefits the most, instead of shoving this new situation into an old leagl framework that doesn't quite fit.
Re:Uber and Lyft ordered by California judge to classify dri... by behringer on Monday August 10, 2020 @06:44PM (#24114976)
So we can have a worker with even less rights than a contractor? Sounds absolutely terrible.
Re:Uber and Lyft ordered by California judge to classify dri... by d0gbread on Monday August 10, 2020 @06:50PM (#24115026)
That isn't remotely what the comment you're replying to said. I agree that thinking about the gig economy as a different type of worker opens to door to a "how might we" conversation where everyone has the opportunity to win.
Re:Uber and Lyft ordered by California judge to classify dri... by x0 on Monday August 10, 2020 @08:54PM (#24116093)
> thinking about the gig economy as a different type of worker opens to door to a "how might we" conversation where everyone has the opportunity to win.

We, the readers of Hacker News, are going to fix the gig economy! Everyone, download a copy of your local laws and send a pull request to your country's highest Court.

But seriously, I think having a discussion, working out a perfect system where we'll all be better off is more than a bit hopeful.

Re:Uber and Lyft ordered by California judge to classify dri... by d0gbread on Monday August 10, 2020 @11:33PM (#24116918)
I mean, you joke, but if we all took a more active role in forming educated opinions and voting, we'd all be better off. There isn't much of a reason to not find the time to familiarize with local laws and send a letter to representatives, vote on policy over party, have more nuanced conversation with family and friends, etc.
Re:Uber and Lyft ordered by California judge to classify dri... by akiselev on Monday August 10, 2020 @06:35PM (#24114890)
The part time drivers aren't the problem, it doesn't cost much to move them into being employees assuming they made above minimum wage to begin with. The problem is with all the people working uber full time and over 40 hours a week. At that point, a lot of things get more expensive like the burden of providing health insurance
Re:Uber and Lyft ordered by California judge to classify dri... by threepio on Wednesday August 12, 2020 @06:24PM (#24137754)
Why is there a need to "write legislation"? If Uber wants to treat drivers as contractors (or employees), California's lawmakers & courts have already set out a clear path toward legally doing either. Meanwhile, I'm sure you're right that many drivers would prefer to be contractors.

So who's the resistant party? Right -- Uber. Why? Because they can't make their unit economics work either way.

"But if the drivers want this intermediate arrangement, and Uber wants it, why should Calif stand in the way?" States make a lot of contracts, especially labor contracts, illegal because they go against public policy (including externalizing too many costs on state & local govts themselves). Still, Uber would be welcome to restrict its activities to states and countries that have labor laws more to its liking. Chemical & manufacturing & agricultural firms have been doing this for years. But Uber can't turn a profit without being in dense cities in liberal states (where labor laws are usually stronger)

One more argument is often advanced, which is "there is no scenario under which Uber could use contractors." This is also untrue. For instance, instead of working directly with individual drivers, Uber could pursue a franchise-style model, where it might, say, solicit bids among companies representing groups of drivers to handle all the rides in a certain zip code. Variations of this model are already used in a lot of industries, of course. But Uber's margins are already too thin, and it would have to give up too much control. Uber prefers the current model precisely because the balance of negotiating power is permanently asymmetric.

Re:Uber and Lyft ordered by California judge to classify dri... by nomad543 on Monday August 10, 2020 @06:19PM (#24114729)
Uber can say that drivers can set their own rates but they can only afford certain rate. Wouldn't this work?
Re:Uber and Lyft ordered by California judge to classify dri... by omgwtfbyobbq on Monday August 10, 2020 @06:24PM (#24114784)
It's ultimately the passenger who would afford or not afford whatever rate. If drivers were truly contractors, Uber would just act as a a middleman and take a cut of whatever rate the driver set.

Edit - Or allow customers to set the rate, and again take a cut of whatever that was.

Re:Uber and Lyft ordered by California judge to classify dri... by rdlecler1 on Monday August 10, 2020 @06:21PM (#24114754)
You set your own rate by accepting the ride or not?
Re:Uber and Lyft ordered by California judge to classify dri... by gok on Monday August 10, 2020 @06:17PM (#24114703)
I don't know where this meme started. Taxi drivers have never set their own rates and have always been contractors.
Re:Uber and Lyft ordered by California judge to classify dri... by Jommi on Tuesday August 11, 2020 @02:29AM (#24117698)
Huge generalization that says nothing about what taxi drivers you are talking about. Taxi Drivers in Estonia for example have been able to set their own rates for a long time.
Re:Uber and Lyft ordered by California judge to classify dri... by JMTQp8lwXL on Monday August 10, 2020 @07:43PM (#24115555)
This is an interesting flavor of ad hominem. While the post isn't a personal attack, it severely degrades the argument by calling it a 'meme'. Omitting the first sentence, and leaving the second, would be far more effective.

https://farm8.staticflickr.com/7512/15985103560_ed7985fc2a_o...

Re:Uber and Lyft ordered by California judge to classify dri... by gok on Monday August 10, 2020 @08:44PM (#24116025)
Would it be better if I called it a "misconception" perhaps? If it matters, I meant it in the "idea that spreads between people" sense, not the animal-gif-with-block-text sense.
Re:Uber and Lyft ordered by California judge to classify dri... by Karunamon on Monday August 10, 2020 @07:50PM (#24115618)
People are deserving of respect, arguments less so. I see no reason to grant any particular deference to a sentence.
Re:Uber and Lyft ordered by California judge to classify dri... by JMTQp8lwXL on Monday August 10, 2020 @07:57PM (#24115687)
Saying an argument is false because it's a meme isn't a rational way to argue against a thought. You argue against things with facts and evidence. It's more disrespectful of the opposition if that's the strongest remark the opposition can make.

I suppose the great-grandparent is more an 'appeal to emotion' fallacy rather than ad hominem.

Re:Uber and Lyft ordered by California judge to classify dri... by closeparen on Monday August 10, 2020 @09:12PM (#24116212)
The word "meme" isn't doing any argumentative work here. It's just a handle for the claim that's being contested, with some extra connotation that the claim is typical or customary rather than unique to this thread.
Re:Uber and Lyft ordered by California judge to classify dri... by repsilat on Monday August 10, 2020 @06:29PM (#24114840)
Ome might as well say that "Some things, like being able to work for Uber's competitors, meant that drivers were never employees."

This is a fuzzy line.

Re:Uber and Lyft ordered by California judge to classify dri... by nilsbunger on Monday August 10, 2020 @08:15PM (#24115813)
What if Uber adds an option where a driver can set a minimum rate per mile or per estimated minute, does that shift the balance back to making them contractors again?
Re:Uber and Lyft ordered by California judge to classify dri... by antasvara on Monday August 10, 2020 @06:57PM (#24115105)
What you seem to be advocating for is a service something like Fiverr, where drivers set their own prices and Uber/Lyft takes a 20% cut off the top.
Re:Uber and Lyft ordered by California judge to classify dri... by mysterEFrank on Monday August 10, 2020 @06:39PM (#24114932)
Uber drivers now set their own rates in California
Re:Uber and Lyft ordered by California judge to classify dri... by redorb on Monday August 10, 2020 @06:48PM (#24115019)
Isn't selecting their own job - at least a bit related to selecting their own rate..

I guess uber could put the jobs up for bid.. to address that.

Re:Uber and Lyft ordered by California judge to classify dri... by foogazi on Monday August 10, 2020 @06:08PM (#24114601)
Do contractors really set their own rates?
Re:Uber and Lyft ordered by California judge to classify dri... by ajhurliman on Monday August 10, 2020 @06:27PM (#24114818)
The answer for contract software engineering is: "Technically, but not really". You interview, then they offer you a job/ contract which pays a certain hourly amount, and you can accept/decline/counter offer just like a full time job.

The equivalent here would be something like, "Okay candidate, I offer you a job as a contractor and the contract says you get paid based off of this algorithm. Accept or decline?"

Re:Uber and Lyft ordered by California judge to classify dri... by inopinatus on Monday August 10, 2020 @07:25PM (#24115395)
This is only true at the start of your career. I’ve been consulting and contracting for decades; customers call me following word-of-mouth recommendation and ask me what my rate is.

Even when I was starting out, years ago, the palette of contract work offered was vast. I was never obliged to follow a cab-rank rule.

Re:Uber and Lyft ordered by California judge to classify dri... by JMTQp8lwXL on Monday August 10, 2020 @07:49PM (#24115613)
Typically, you're employed by the contracting agency (with benefits), they work out a deal with the business and take a cut off the top, though we informally refer to this as contracting.

If you were to set up an agreement with the software company yourself, then it'd be conventional contracting.

Re:Uber and Lyft ordered by California judge to classify dri... by Cakez0r on Monday August 10, 2020 @11:35PM (#24116931)
Would the contractor be an employee of the contracting agency in this scenario?
Re:Uber and Lyft ordered by California judge to classify dri... by heavyset_go on Monday August 10, 2020 @06:17PM (#24114704)
Yes. As far as I'm aware, Uber and Lyft drivers are not able to set their own rates on the platforms.
Re:Uber and Lyft ordered by California judge to classify dri... by dpiers on Monday August 10, 2020 @06:26PM (#24114809)
Drivers who use the Uber platform in California are now able to set their own rates.
Re:Uber and Lyft ordered by California judge to classify dri... by heavyset_go on Monday August 10, 2020 @07:12PM (#24115269)
The majority of people who drive for Uber are not in the parts of California where the justice system is upholding the law, though.
Re:Uber and Lyft ordered by California judge to classify dri... by toomuchtodo on Monday August 10, 2020 @06:08PM (#24114610)
Yes? Who else would set them? Pedantically, the market sets the rates, but the contractor is the one with the power to say yes or no. Gig platforms take that power away (either through a reduction in rating or deplatfoming if you decline work requests).

This is simply closing a loophole gig platforms were built on (misclassifying workers in violation of labor law).

Re:Uber and Lyft ordered by California judge to classify dri... by carlosdp on Monday August 10, 2020 @06:10PM (#24114621)
> Gig platforms take that power away.

Pretty sure drivers have to "accept" a ride, isn't that agreeing to a rate?

Re:Uber and Lyft ordered by California judge to classify dri... by Pfhreak on Monday August 10, 2020 @06:14PM (#24114661)
Pedantically, sure. Ethically, maybe? Legally -- we'll see how this case goes.

I think it's reasonable to argue that because the contractor had no input into the rate, and if they decline too many rides they might be removed from the service, that they do not have the power to set rates.

Re:Uber and Lyft ordered by California judge to classify dri... by AnthonyMouse on Monday August 10, 2020 @06:21PM (#24114747)
Having no input into the rate is meaningless. If they can decline work below a given rate then that's equivalent to setting their own rate -- the rate is set at the point where they start declining work. Obviously that may mean they don't get as much work, but setting your own rate doesn't grant immunity from supply and demand.

What would make this a lot easier is if the apps would just allow you to set a rate below which you're not willing to accept work. The reason they punish you for declining too often is that they don't want the rider to have to wait for multiple drivers who regularly decline all offers before finding one willing to accept it, so that would solve that because you wouldn't even get the offer.

I'm curious to see how this shakes out in the end, because we keep getting these decisions where they say they're employees because X, but then won't they just change X to make them contractors again?

Re:Uber and Lyft ordered by California judge to classify dri... by root_axis on Monday August 10, 2020 @06:35PM (#24114901)
> If they can decline work below a given rate then that's equivalent to setting their own rate

It is clearly not equivalent since uber literally determines the rate. Yes, they can refuse to work below a certain threshold but they aren't in-fact "setting the rate".

Re:Uber and Lyft ordered by California judge to classify dri... by chrisseaton on Monday August 10, 2020 @07:03PM (#24115162)
But isn't that like all contracting?

A software contract offers $50 an hour. I can either take it or leave it.

Uber offers $x an hour (or mile, or however it works.) Drivers can either take it or leave it.

What do you think is the essential difference here?

Do you think software contractors can somehow force clients to accept any rate they want? No. If they client doesn't want to pay above $x then there's nothing you can do but decline the job. Just like Uber driver can do nothing but decline the job, surely?

Re:Uber and Lyft ordered by California judge to classify dri... by root_axis on Monday August 10, 2020 @07:46PM (#24115583)
> What do you think is the essential difference here?

The essential difference is that the role of uber is absent from your analogy.

> Do you think software contractors can somehow force clients to accept any rate they want

I'll just assume that's a sarcastic quip in rhetorical question form rather than what you actually think I believe. Obviously, a software contract is negotiated between two parties, unlike in the case of Uber where all possibility of negotiation is eschewed for a price explicitly set by uber. If a driver wants to offer their services for more or less than uber decides, they cannot, and are forced to lower or raise their price in order to gain access to the market.

Re:Uber and Lyft ordered by California judge to classify dri... by chrisseaton on Monday August 10, 2020 @08:13PM (#24115797)
> If a driver wants to offer their services for more or less than uber decides, they cannot, and are forced to lower or raise their price in order to gain access to the market.

The drivers can ask for any price they want from Uber. Uber can either accept it or not. That’s a negotiation. What more do you think it needs to be a negotiation? That’s just like a normal contract. I may want my fence painted but I’m not paying over £500. If I won’t go below that is it no longer contracting?

Re:Uber and Lyft ordered by California judge to classify dri... by root_axis on Monday August 10, 2020 @08:26PM (#24115885)
Uber drivers don't have the option to set their rates. They cannot "ask for any price they want from Uber", they agree to accept the rates explicitly set by Uber: that's the contract; not every employment contract meets the legal definition of "contract employment"
Re:Uber and Lyft ordered by California judge to classify dri... by chrisseaton on Tuesday August 11, 2020 @05:22AM (#24118611)
> they agree to accept the rates explicitly set by Uber

Like any contractor!

If I offer to pay $500 for get my fence painted, a contractor can either accept that or not.

If you want to hire a web developer for $500 a day, a contractor can either accept that or not.

The fence painter, the web developer and the Uber driver, can all set their own rates by either accepting the job or not, can't they? I don't understand what you think is the difference between the first two and the last one?

Re:Uber and Lyft ordered by California judge to classify dri... by emteycz on Monday August 10, 2020 @06:44PM (#24114974)
Uber does not determine the rate, the market does. Uber won't find drivers if the rate is too low, for example because it's lower than the costs, lower than the risk, or lower that the competition. Uber (and the driver too) won't find customers if the rate is too high.
Re:Uber and Lyft ordered by California judge to classify dri... by root_axis on Monday August 10, 2020 @07:15PM (#24115294)
> Uber does not determine the rate, the market do

Not true. Uber's algorithm sets the rate within certain profitability margins which are determined by uber, "the market" is very artificial since customers only ever see the rates that uber decides they should see rather than what some drivers would actually offer.

> Uber won't find drivers if the rate is too low, for example because it's lower than the costs, lower than the risk, or lower that the competition. Uber (and the driver too) won't find customers if the rate is too high.

Right... uber deliberately structures the market through their explicit control of the price. The price is only "too low" or "too high" with respect to uber's business goals not with respect to what the actual market would do.

Re:Uber and Lyft ordered by California judge to classify dri... by emteycz on Monday August 10, 2020 @07:20PM (#24115332)
There are other market players than Uber, and Uber is in no way a taxi monopoly. You could say this about literally any marketplace and especially about any taxi company (nearly all taxi companies have independent drivers-contractors, usually driving their own but branded cars - at their own expense, and with exclusivity contracts; taxis all over the world work this way), but only the more modern marketplaces are forced to modify their relationships. I both as a customer and a occasional driver hate this, thankfully I am driving in Czechia where no such law would ever pass, the traditional taxi lobby is not as strong - but they're trying hard.
Re:Uber and Lyft ordered by California judge to classify dri... by root_axis on Monday August 10, 2020 @07:34PM (#24115473)
> There are other market players than Uber, and Uber is in no way a taxi monopoly

True, but not relevant to my point which is that uber explicitly sets the rates, not drivers, and not the market. I understand why they do this, but it's simply false to say that drivers having the option to sometimes pass up on rides is the equivalent of setting their own rate.

Re:Uber and Lyft ordered by California judge to classify dri... by emteycz on Monday August 10, 2020 @09:32PM (#24116318)
Let's consider me, an IT contractor. I have a profile with IT staffing agency. They offer me contracts with a predetermined rate that I can accept or decline; I was offered an exclusivity contract for additional 5% income, but I declined. Why is me, an Uber driver so different that I am to be forced to be an employee?
Re:Uber and Lyft ordered by California judge to classify dri... by Pfhreak on Monday August 10, 2020 @06:26PM (#24114806)
Is the amount a driver makes totally transparent to them ahead of accepting a ride, sufficient that they could refuse anything that makes them less than $XX/hour or travels to an area they don't want to travel to?

Are drivers removed from the platform if they refuse too many rides?

It seems like the drivers actually have very little power to enact any effective bargaining over rates in practice.

Re:Uber and Lyft ordered by California judge to classify dri... by radicaldreamer on Monday August 10, 2020 @06:21PM (#24114745)
If you don't accept nearly every ride, you are kicked off the platform...
Re:Uber and Lyft ordered by California judge to classify dri... by flak48 on Monday August 10, 2020 @07:22PM (#24115356)
If I had a dispatch company that phoned/radioed possible drivers in some round robin order, if driver number 4 always tends to decline I would stop wasting my time and my rider's time in contacting him again, after a point
Re:Uber and Lyft ordered by California judge to classify dri... by root_axis on Monday August 10, 2020 @07:50PM (#24115625)
Sure, but in this example the situation only happens because the dispatcher controls all the prices, if the drivers could set their own prices then they would have no reason to decline.
Re:Uber and Lyft ordered by California judge to classify dri... by zaroth on Monday August 10, 2020 @09:39PM (#24116354)
Economically the result is identical. The driver “sets their rate” above the market rate and drivers with lower rates get all the rides.
Re:Uber and Lyft ordered by California judge to classify dri... by root_axis on Monday August 10, 2020 @09:59PM (#24116470)
No, it is not at all identical because riders only get to see the prices that uber wants them to see rather than all the rates that would be available if drivers could set their own rates, thus "the market rate" cannot escape a threshold that is contrary to uber's business prerogatives.
Re:Uber and Lyft ordered by California judge to classify dri... by zaroth on Monday August 10, 2020 @11:21PM (#24116860)
First, there’s more than one app than just Uber.

Second, Uber is running the supply/demand auction system behind the scenes already. Prices are not fixed but dynamic and change in real-time based directly on supply and demand.

I’ve often brought up the app to check prices and decided not to ride for a while. Drivers do something similar.

> thus "the market rate" cannot escape a threshold that is contrary to uber's business prerogatives.

I’m not sure what this means. I’m sure Uber sets some reasonable floor on the price, but it’s more in the driver’s interest than their own. There are absolutely drivers who would drive for below operating cost of the vehicle because either they aren’t bothering to calculate it or they aren’t the ones actually paying for it (e.g. a car that is late on payments and soon to be repo’d).

Re:Uber and Lyft ordered by California judge to classify dri... by erik_seaberg on Monday August 10, 2020 @09:52PM (#24116426)
Do taxi dispatchers track how often a driver accepts a request but never shows up? It sounded really common back when I was driving airport shuttles.
Re:Uber and Lyft ordered by California judge to classify dri... by jy1 on Monday August 10, 2020 @09:45PM (#24116378)
Not true - you can get logged out for inactivity, but you will never get banned or "fired"
Re:Uber and Lyft ordered by California judge to classify dri... by JMTQp8lwXL on Monday August 10, 2020 @06:13PM (#24114656)
Agreeing to a rate != setting your rate, and having the counter-party agree or disagree to your rate.
Re:Uber and Lyft ordered by California judge to classify dri... by munk-a on Monday August 10, 2020 @06:19PM (#24114731)
In actuality these actions aren't so different, I could offer my services to Microsoft at 200k an hour and they're free to decline me.

I think the real issue here can't be resolved by an examination of terms - it involves a power dynamic where Uber contractors are extremely at disadvantage when it comes to being able to set your own rates. I don't know if Uber even has someone on staff that's qualified or expected to negotiate with independent drives that are interested - they have a posted rate that you either accept or they walk away. And, the worst part, they change that posted rate for BS reasons constantly in a way that people can't predict, it makes for an unreliable and misleading income.

Re:Uber and Lyft ordered by California judge to classify dri... by chrisseaton on Monday August 10, 2020 @07:04PM (#24115183)
Every software contract I've ever seen offers $x a day, or hour, or whatever.

They don't just let you go in demanding whatever you want. There's a limit to what they want to pay. Just like Uber.

Re:Uber and Lyft ordered by California judge to classify dri... by JMTQp8lwXL on Wednesday August 12, 2020 @12:34AM (#24128620)
When it comes to standard W2 employment, an employer can also list $X/hr or an annual salary.

You can absolutely go in and demand whatever you want. If you ask for 3x, you probably won't get the job. But 5% or 10% over x? It's possible. I don't see how contracting is 'locked in'. You are certainly free to negotiate, unlike on Uber or Lyft's platform.

Re:Uber and Lyft ordered by California judge to classify dri... by toomuchtodo on Monday August 10, 2020 @06:12PM (#24114640)
Based on court cases these articles are reporting on and modifications platforms have been making to driver interfaces due to AB5, no.
Re:Uber and Lyft ordered by California judge to classify dri... by emteycz on Monday August 10, 2020 @06:13PM (#24114653)
Based on reality, how is that different from IT contracting where I am responding to a contract with predetermined MD rate?
Re:Uber and Lyft ordered by California judge to classify dri... by jy1 on Monday August 10, 2020 @06:11PM (#24114634)
Gig platforms neither decrease your rating / deplatform you if you decline work.
Re:Uber and Lyft ordered by California judge to classify dri... by ceejayoz on Monday August 10, 2020 @06:15PM (#24114684)
Re:Uber and Lyft ordered by California judge to classify dri... by jy1 on Monday August 10, 2020 @09:37PM (#24116339)
Did you even read these? Give me a single line that supports your assertion here.
Re:Uber and Lyft ordered by California judge to classify dri... by jy1 on Monday August 10, 2020 @09:43PM (#24116370)
To clarify,

"Rating" is generally accepted as the "star rating" or some other statistics that users will see. Yes your "acceptance rate" will be affected, but this is a vanity metric that is secret to the driver => It is irrelevant.

There is no mention of deplatforming in any of these articles.

Re:Uber and Lyft ordered by California judge to classify dri... by ylyn on Monday August 10, 2020 @06:21PM (#24114753)
His point is that Uber and Lyft are not like normal gig platforms because of this.
Re:Uber and Lyft ordered by California judge to classify dri... by ceejayoz on Monday August 10, 2020 @06:25PM (#24114793)
Re:Uber and Lyft ordered by California judge to classify dri... by tynpeddler on Monday August 10, 2020 @06:44PM (#24114979)
Drivers set their own rates via a reverse dutch auction. Uber offers a short term contract at a certain rate. If no contractor accepts that rate, Uber increases the contract rate until someone accepts.