Tag: gig economy
Uber And Deregulated Hypercapitalism Increasingly Leave Americans Unprotected

Uber And Deregulated Hypercapitalism Increasingly Leave Americans Unprotected

Published with permission from Alternet.

Last week in San Diego, Calif., an Uber driver was charged with 20 counts of sexual assault-related charges stretching back several years, only months after he allegedly raped an intoxicated young woman who sought a ride home. (Uber immediately fired the driver after that incident last winter.) The attack, which was rare but not unprecedented, prompted Uber’s competition, the traditional taxi industry, to demand the Golden State require ride-share drivers undergo police-conducted fingerprinting and criminal background checks—which Uber has fervently opposed.

“Driving for Uber provides sexual predators with a paid opportunity to locate and transport intoxicated victims,” said Dave Sutton, a spokesman for Who’s Driving You? a taxi industry group that has complained ride-share drivers don’t operate under the same government-administered accountability rules as they do. “Police-conducted fingerprint background checks could deter such predators. The CPUC (California Public Utility Commission) should urgently take up fingerprinting Uber and Lyft drivers to protect Californians,” Sutton said.

While the CPUC said it will look at that in June, there is more to this sordid news and ongoing political fight than meets the eye. The odds are not just long that state regulators will interfere with a high-tech company that says it’s already self-policing its drivers, and paints itself to lawmakers as a vanguard of the future. The embrace of rapidly growing companies like Uber is the harbinger of a deeper and more disturbing trend—the reality that Americans are increasingly unprotected as individuals against the growing power of corporate giants.

State government, even in states like California where Democrats are in the majority, are not insisting that seemingly new industries—such as the ride-share industry—follow consumer protections that have existed for decades. There is a reason for this. In 2015 in California, Uber spent more money lobbying lawmakers to avoid state regulation than tech giants Apple and Facebook, according to Governing, a magazine for policymakers.

Uber’s lobbyists, led by President Obama’s 2008 campaign manager, David Plouffe, opposed legislation that would mandate drivers get special licenses, are treated as employees and not contractors, have more insurance, and undergo drug testing and background checks. Many in the Democrat-run statehouse consider Plouffe a celebrity, posed for selfies with him, and defeated many of the public safety hoops that long ago were required of traditional taxis, Governingreported.

When it came to screening drivers, Uber said it would use a private firm, not police and criminal record databases, as it explained on its website, because government databases are often incomplete and there’s been too much racial profiling and race-based convictions in the criminal justice system.

“In particular, communities of color are disproportionately impacted because they are arrested at a higher rate,” Uber explained, as it defended its use of private screening firms and rejected use of police records. “Across the U.S., at least 70 police departments arrest African Americans at ten times the rate of Caucasians.”

All of what Uber cites is true, but it’s not the whole picture. And Uber’s touted precautions have not prevented some predatory drivers from scouting for targets and assaulting women. That’s what happened in Cincinnati, Ohio, this past January, where it was covered in the nightly news.

Needless to say, Sutton’s group wants to level the playing field with competitors like Uber and has compiled and cataloged dozens of incidents involving ride-share drivers where people have been killed, robbed, assaulted, kidnapped or raped. Uber, in response, defends its policies and has a record of firing drivers once an alleged infraction is reported.

“Accidents and incidents will always happen. And when it comes to screening, every system has its flaws,” Uber’s safety webpage said. “That’s why we continue to invest in new technologies that help keep riders and drivers safe before, during, and after every ride.”

The bottom line is corporations like Uber, that wrap themselves in the flag of tech innovation, are eroding the public’s ability to protect itself. That’s anything but a new approach; it is rolling back the clock to a more exploitive economic era that took decades of political action to reel in.

Uber is just one example. But as last week’s arrest and charging of a former driver with a litany of sex-related crimes shows, companies that are presenting themselves as being in the vanguard of a new economy are leaving Americans unprotected from their hypercapitalism. The political system keeps tilting the balance toward corporate prerogatives and away from individuals. Is it any wonder that 2016’s electorate is angry, volatile and feeling victimized?

Steven Rosenfeld covers national political issues for AlterNet, including America’s retirement crisis, democracy and voting rights, and campaigns and elections. He is the author of “Count My Vote: A Citizen’s Guide to Voting” (AlterNet Books, 2008).

Photo: Josh Mohrer, Uber’s general manager for New York, speaks to the media while Uber riders and driver-partners take part in a rally on steps of the New York City Hall in New York June 30, 2015. REUTERS/Eduardo Munoz/File Photo

What Does It Mean To “Gig” American Workers?

What Does It Mean To “Gig” American Workers?

Pouty, whiney, and spoiled-bratism is not nice coming from a four-year-old — but it’s grotesque when it comes from billion-dollar corporate elites like Uber and Lyft.

The two internet-based ride-hiring (they call themselves “ridesharing,” but they don’t share anything, and their business model relies on folks needing a ride to hire a driver through their app) brats have swaggered into cities all across our country, insisting that they’re innovative, tech-driven geniuses. As such, they consider themselves above the old laws that other transportation companies, like taxis, follow. So Uber and Lyft have made it a corporate policy to throw hissy fits when cities — from Los Angeles to Atlanta, Houston to Portland — have dared even to propose that they obey rules too.

The latest tantrum from the California giants happened in Austin, when the city council there adopted a few modest, perfectly reasonable rules, despite the screams of PR flacks from both outfits. The petulant duo then used fibs and high-pressure tactics to get enough signatures on petitions to force a special election to overturn the council’s action. Naturally, being brats, they gave the city an ultimatum — “Vote our way or we will leave town” — and assumed that Austin’s tech-savvy voters would flock to do whatever the popular ride-sharing service wanted.

But they picked the wrong city. First, they ran a campaign of blatant lies, as though Austinites wouldn’t question them. Then, they shoved a sickening level of corporate cash into their campaign, apparently thinking that the sheer tonnage of ads would win the day for them. However, the slicks from California turned out to be uber-goobers. Despite spending $9 million (more than the combined spending of all city council candidates in the past decade), they went down, 56 to 44 percent.

Since they didn’t win their campaign, Uber and Lyft have now left town in a huff leaving their 10,000 Austin workers/drivers behind to fend for themselves. Since their workers are considered contract employees, there will be no severance package or unemployment benefits for them.

This is part of the new “gig economy — the latest corporate buzz-phrase from Silicon Valley to Wall Street. CEOs are hailing a Brave New Workplace in which we lucky worker bees no longer have to be suck in traditional jobs with traditional hours, traditional middle-class pay scales, traditional benefits, traditional job security, and all those other fusty “traditionals” of the old workplace, In fact, in the gig economy, you’re not even bothered with having a workplace. Rather, you’ll be “liberated” to work in a series of short-term jobs in many places, always being on-call through a mobile app on your smart phone or through a temp agency. How exciting is that?

Well, they use “exciting” in the sense of distressing and nerve-wracking. The gig economy means you’re on your own — you’re not an employee, but an “independent contractor,” with no rights and no union. You might have lots of calls to work this week, but there’ll be many weeks with no calls. Don’t get sick, injured or wreck your car, for no health care or workers’ comp are provided. A pension? Your retirement plan is called “adios chump.”

This “alternative work arrangement” is not a futuristic concept — it’s already here and spreading fast. And it’s not just ride-hiring gigs either. Some 16 percent of U.S. workers are now in this on-call, temporary, part-time, low-pay, you’re-on-your-own economy, up from only 10 percent a decade ago. Corporate chieftains (backed by the economists and politicians they purchase) are creating what they call a workforce of non-employees for one reason: Greed. It directly transfers more money and power from workaday families into the coffers of moneyed elites.

Their gig economy is aptly named, for “gigs” are crude four-hook fishing devices that’re drug by commercial fleets through schools of fish to impale them, haul them in, and cash in on the pain. And if you don’t think the gig economy is painful, why don’t you ask the 10,000 Uber and Lyft workers in Austin how they feel about it?

To find out more about Jim Hightower, and read features by other Creators Syndicate writers and cartoonists, visit the Creators Web page at www.creators.com.

COPYRIGHT 2016 CREATORS.COM

Photo: An Uber car is seen parked with the driver’s lunch left on the dashboard in Venice, Los Angeles, California, United States July 15, 2015. REUTERS/Lucy Nicholson

Seniors Gear Up For The Sharing Economy

Seniors Gear Up For The Sharing Economy

By Mark Miller

CHICAGO (Reuters) — Five dollars may not sound like much pay for doing a job, but do not tell that to Brooke Folk.

At age 67, Folk spends up to 30 hours a week on projects generated through Fiverr.com, a shared-economy website that requires all its vendors to offer something to customers for just $5 and takes a 20 percent commission on earnings.

Folk, a former radio announcer and small business owner who lives near Pittsburgh, earns approximately $10,000 per year in supplemental income to his Social Security benefits on the site writing short stories and narrating scripts. He also sells — no surprise here — an e-book explaining how to succeed on Fiverr.

“When I first heard about it, I wondered if I should do something for $5, but what happens is you often upsell customers something additional. The most that I’ve billed an account is $1,300, and that’s a far cry from $5.”

More Americans than ever intend to keep working past traditional retirement age — whether it’s just to keep busy or because they need to financially — and entrepreneurship is becoming a more common alternative to full time jobs.

Entrepreneurs age 55-65 accounted for 26 percent of all startups last year, up from 15 percent in 1996, according to the Kauffman Index of Entrepreneurial Activity.

Fiverr may be a millennial-dominated platform with just 2 percent of sellers over the age of 55, but growth in vendors age 55-64 shot up 375 percent at the end of the second quarter this year compared with a year ago, according to the company.

Starting a business may sound like a risky investment of capital, but it does not have to be. A “micro-enterprise” — or side-gigging — can help retirees generate supplemental income without putting capital at risk and perhaps even enough to stall filing for Social Security or ease the pressure for drawdowns from retirement portfolios.

Folk is participating in an emerging online ecosystem that helps micro-entrepreneurs leverage their accumulated knowledge and experience. Other platforms include retail site Etsy.com (handmade and vintage items), and freelance marketplaces Guru.com and Freelancer.com.

But the action is not limited to the knowledge economy. For example, Airbnb.com recently noted that 10 percent of its hosts are over age 60.

Older Drivers

And AARP’s Life Reimagined — a program focused on guiding people through life transitions — recently announced a partnership with Uber aimed at recruiting older drivers. Life Reimagined has 1.4 million members; for Uber, the alliance is part of a strategy to hire hundreds of thousands of drivers as it works to meet surging demand for its service.

If driving strangers around in your own car for hours on end does not sound like an ideal retirement to you, AARP begs to differ. While it is not putting an age limit on applicants, AARP sees the Uber program as ideally suited to the younger end of its constituency — workers over 50 who have been sidelined by economic turbulence.

“The shared economy is offering people an opportunity to follow their hearts, have flexibility in their work, be empowered to make money, and be their own bosses,” says Adam Sohn, vice president of strategic initiatives at Life Reimagined.

“And, for millions of people who are doing what they don’t love, or have been pushed out of precarious jobs and are having trouble fighting their way back into the workforce, this kind of work also can provide a transition to whatever is next.”

Microentrepreneurship certainly offers a path around the age discrimination that older workers face.

In an AARP study released earlier this year, more than half of older workers who lost jobs during the Great Recession said age discrimination had a significant impact on their ability to find new work. But in the gig economy, if you can get the job done, no one cares about your age.

Nearly 25 percent of Uber’s drivers are over age 50, according to a study commissioned by the company recently – and among new drivers with no previous professional driving experience, 39 percent are over 50. Three percent were retired before driving for Uber, and 8 percent were unemployed; one in five drivers was employed in a temporary job.

Uber does not disclose data about the earnings of its drivers, but the report states that drivers are making $19 per hour on average.

(The writer is a Reuters columnist. The opinions expressed are his own.)

(Editing by Beth Pinsker and Alan Crosby)

Photo: Alper Çuğun via Flickr