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Uber Functions via Marketplace Platform Not Drivers, Really…

Digital economy is really shaking up the old ways of doing things.  Most people do not realize wide implications the digital economy may have on how it may have impact if you do not understand.  For example, working from home online, or using online method to generate revenue is you are working for yourself; not for anyone else.

In a recent controversy, Uber claimed that its drivers are not core to its business.  Uber's position was in response to new landmark legislation in California that could force Uber and Lyft to give drivers (workers) greater financial benefits as employees.

Uber's position is that the drivers are not part of their "usual course" of business because the app is really a tech platform for digital marketplaces and not primarily an employer of drivers.  In another words, Uber's core is the app- the technology that connects people to each other.  There are people who want rides to go places and then there are those people who want to provide rides.  Drivers are free to accept or decline rides as they please.  Just as riders, drivers are "customers" of its marketplace.

No More Living Paycheck To Paycheck

Meanwhile, politicians and labor groups are not ready to buy into Uber's argument and see it as Uber trying to get out of providing basic employment protections in California.  According to many business analysts, the California law could cost Uber an additional $500 million in annual operating costs if drivers are classified as employees. It is all about money!

So, does Uber have a case when it says its drivers aren't a core part of its business?

There have been over 60,000 arbitration cases form drivers over employment classification issues. In one case from 2018 an arbitrator ruled that an Uber driver was not entitled to employee pay and benefits. According to the arbitrator's ruling "It (Uber) provided only exposure (albeit, very effective exposure" to the possibility that a rider will find a driver willing to provide a ride, and driver will find a rider willing to be driven.  The distinction is material."

No More Living Paycheck To Paycheck

However, in public court rulings, judges have been less than favorable to Uber. A judge in California and New York stated that Uber's argument that drivers aren't a central part of its business is basically groundless.

There is a lesson to be learned here if you are earning online.  Basically, that when you are working independently you are on your own.  That means you are not going to get benefits from any company or "up line".  Be sure to save and ensure that you have funds to cover retirement or any health issues that may emerge.  Have a system that will create continuous revenues for you rather than any one company.

This article was published on 23.09.2019 by Prakash Kunjeer
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