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by NormenNomen
2053 days ago
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Isn't this forum all about markets? I'm sure you can put where I'm going with this together. Anyway it's beyond rich describing half these companies as "profitable" in the first place. They're burning the cash at both ends to not get kicked out of california. I have no clue how you could imagine they're the people with leverage with a straight face. |
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I sincerely doubt uber/lyft/instacart etc. will ever be profitable and have margins that make them viable businesses.
Lyft/Uber etc. have zero leverage; inorder for them to make their margin and retain profitability, they depend on low labor costs. If those costs go up they aren't in business (e.g.demand elasticity of price will kill them).
So they aren't pushing this as a 'I have leverage' play. It's an existential issue for them. They cannot exist with the labor prices demanded by the AB5.
If they cannot make their margin, they go out of business and then there is no more ride share business. Then the existing jobs go away. And this is the point of my comment. These jobs only exist with low wages. Raise the wages and the jobs go away because the business becomes unprofitable and exits.