Maybe I'm dense but if drivers aren't finding the expected wage acceptable then why don't they simply choose not to offer their services to Uber? I'm not saying that in the "cruel capitalist" way, I'm observing -- they still choose to work, so there must be demand for it at a low wage level.
Seems to me we have an oversupply of labor of people willing (or needing) to work for pennies. Having a minimum wage isn't going to improve that. It's going to lead to fewer people taking rides, and fewer people being able to become Uber drivers, but slightly better for the ones that can remain drivers. Classic minimum wage problems.
Why don't we make it $30 per hour? or $50? That would be even better.
That's a fair question, but you'd also need to ask it about essentially the entire history of the labor movement. Why did coal miners fight and die for modern labor laws, rather than finding different work? In the big picture, there are structural forces that get in the way of a simple supply-and-demand view of labor. People's lives are sticky, and the next-best-alternative to a person's current job is often much worse, rather than just a little bit worse.
> why don't they simply choose not to offer their services to Uber?
You assume there are other options without barriers to entry. You’ve learned how to drive uber, you’ve got a vehicle and payments to make - now take a risk on some other gig with a million unknowns?
Now it’s possible that uber cannot shoulder this cost by lowering their margins, and it will pass directly to the consumer as you suggest - but it’s not guaranteed. The fact that uber is behind this suggests that they can shoulder the cost.
I'm sure driving for uber is not difficult, but making money driving for uber is 100% a skill. When to go out, where to be, how long your shift should be, what rides to skip, etc. That's all invested learning.
> Also worth noting, many of the jobs did not even exist before Uber created a market for it.
Their trophey is in the mail. Just because you create a new job, does not mean it's a good job.
> Collective bargaining, aka unionizing, does essentially just that, only with more leverage.
yes! it seems clear to me that uber drivers would benefit from unionizing.
I am led to believe that the turnover for Uber, Lyft, etc. is pretty high. I think a lot of people, after doing it for a few months, realize that after the cost of burning up their car is taken into account it's not making them much.
So, why don't they choose not to offer their services to Uber? Well, I think they mostly do, eventually.
Once VC money is no longer subsidizing rideshare businesses, I'm not convinced that they will stay in existence in any form whatsoever.
Nope, I'm really not saying it that way. You probably just can't seem to understand that opinion or possibility without putting it in a certain category of belief.
Seems to me we have an oversupply of labor of people willing (or needing) to work for pennies. Having a minimum wage isn't going to improve that. It's going to lead to fewer people taking rides, and fewer people being able to become Uber drivers, but slightly better for the ones that can remain drivers. Classic minimum wage problems.
Why don't we make it $30 per hour? or $50? That would be even better.