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by enoch_r
4519 days ago
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On benefits and worker's comp: almost single UberX driver I've talked to has raved about Uber. Spontaneously. Why? Because the main way Uber saves money, compared to traditional taxi companies, isn't "avoiding paying those pesky benefits" or workers comp. They save money by not getting taxi medallions--part of a regulatory quota system that serves no purpose other than to artificially limit the number of cabs. Note that since cab drivers can't usually afford hundreds of thousands of dollars for a taxi medallion, they have to lease them--so it's primarily people with a few hundred thousand dollars to spare (taxi companies and their investors) not drivers, that benefit from this hamstrung competition. A lot of people criticize Uber because "it isn't really innovative, they are just skirting regulations." Well, maybe avoiding the regulations is the innovative part. It's a loophole, and to me (not a lawyer) it seems shocking that it's legally workable. But they've dramatically increased the incomes and freedom of cab drivers, and substantially decreased the price of cabs (I only take UberX, and it's at least 30% less than an equivalent cab here in Orange County, CA). And now that drivers and customers have experienced a medallion-free taxi system, the taxi companies are going to have a hard time regaining control. |
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