If Uber drivers become employees, can Uber escape that?
Share to twitterA ride app pickup sign is displayed at Los Angeles International Airport in Los Angeles, California, U.S., on Wednesday, Sept. 11, 2019. Uber Technologies Inc. drivers in California sued the company for violating a new state law they say is specifically designed to end Uber's practice of classifying the drivers as independent contractors, rather than employees.
There is an irony in that when it comes to robotaxi service. People frequently wonder about what the employment consequences of robocars are, and what happens when they displace people who drive for a living. One can understand the drivers wanting to make more money and get more rights. Ironically though, this will hasten their replacement as the price difference between a robotaxi ride and a human driven ride increases. Robots certainly won't demand higher pay, rights and benefits.
Today, Uber pricing is based on several factors. There is a basic ride fee, then a cost per mile, and then a cost per minute. That's the core formula, but now that Uber and Lyft quote rates up front, they alter this with surges, and must estimate the time the ride will take considering traffic.
This image shows a Lyft driver's phone on the left showing what she was paid, and my phone on the right, showing what I paid for the ride. Drivers sometimes get cheated it seems.They could make it clear that your relationship is with the driver. They could even quickly change the display to say"Mary's ride service" once they connect you with Mary, and with work, even have that appear on credit card statements.
It may also be the case that Uber offers drivers the choice of being employees or contractors. Employees would be made to follow some strict rules about following specified hours. They would never get surge prices or incentives. They could never drive for a competitor during their shift. They could make them wear a uniform and standardize their vehicles.
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