Michael Hiltzik wrote a column about Uber protests. I usually agree with him..but I'm not sure this time
What the New Yorker magazine misses about the Uber protests - LA Times
I do agree that Uber & Lyft are destroying the taxi paradigm. However, we do need to keep them in competition with Taxi companies. Taxi companies are also free to set up their own smartphone app that rates drivers and customers. I agree that 20% "commission" sounds steep, and I think that competition could drive that down to 10-12%. On the other hand, drivers already own their car and presumably have no better "opportunity cost" for the time they are spending. So getting 80% of the fare is probably a lot better than what a traditional cab driver earns. I also expect that cab drivers are on the "endangered species list" with self-driving cars on the horizon.
I think that Uber/Lyft are doing to cab companies what Craigslist & Ebay did to newspaper advertising revenue. I don't believe they are "employers." If I make a business buying/selling on Ebay & Craigslist, and I agree to standards and fees charged by those businesses, am I their employee? If I rent my home using AirBnB and receive payment from them isn't that similar to renting my car-driving service on Uber?
This is a technological revolution. I remember when grocery bar-code scanning was fought by the grocery union because they feared loss of jobs (stamping prices on goods) and loss of skill requirements (memorizing prices of unstamped goods). However now it is fully accepted. Consumers got much larger selections in stores (easier inventory management) and more accurate check-out. Mark-ups in grocery stores can be less because of lower expenses. A win-win for everyone! Uber & Lyft are doing the same thing. We shouldn't stop the change. I believe we can manage the change, and help minimize or mitigate the damage to the displaced workers and businesses.
What the New Yorker magazine misses about the Uber protests - LA Times
I do agree that Uber & Lyft are destroying the taxi paradigm. However, we do need to keep them in competition with Taxi companies. Taxi companies are also free to set up their own smartphone app that rates drivers and customers. I agree that 20% "commission" sounds steep, and I think that competition could drive that down to 10-12%. On the other hand, drivers already own their car and presumably have no better "opportunity cost" for the time they are spending. So getting 80% of the fare is probably a lot better than what a traditional cab driver earns. I also expect that cab drivers are on the "endangered species list" with self-driving cars on the horizon.
I think that Uber/Lyft are doing to cab companies what Craigslist & Ebay did to newspaper advertising revenue. I don't believe they are "employers." If I make a business buying/selling on Ebay & Craigslist, and I agree to standards and fees charged by those businesses, am I their employee? If I rent my home using AirBnB and receive payment from them isn't that similar to renting my car-driving service on Uber?
This is a technological revolution. I remember when grocery bar-code scanning was fought by the grocery union because they feared loss of jobs (stamping prices on goods) and loss of skill requirements (memorizing prices of unstamped goods). However now it is fully accepted. Consumers got much larger selections in stores (easier inventory management) and more accurate check-out. Mark-ups in grocery stores can be less because of lower expenses. A win-win for everyone! Uber & Lyft are doing the same thing. We shouldn't stop the change. I believe we can manage the change, and help minimize or mitigate the damage to the displaced workers and businesses.
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