This actually is Uber's hypothesis: they can achieve profitability by targeting a part of the labor market that values flexibility, obscure the many ways labor is uniquely inflexible on the platform, then tinker the IC model to offload as many costs onto drivers as possible 2/5
#Prop22 might inflate value again, but won't fix some of the core reasons valuation dropped: unprofitability, no path to monopoly, failed autonomous, and even worse fundamentals on every other business line. It also faces much stronger legal cases abroad than in the US. (3/5)
As Hubert Horan hammered home in "Can Uber Deliver?" the "innovative" Uber culture was just the flip side of a toxic workplace culture. Uber grew fastest when it valued human life the least: minimizing labor costs while maximizing "supply" as Kalanick used to call drivers (4/5)
This is a glimpse into the next—even worse—value proposition. Eats has huge growth but even worse fundamentals than Rides (despite the pandemic boost). It is even MORE unprofitable, has even LESS customer loyalty, and has even MORE competitors! (5/5) https://www.nakedcapitalism.com/2020/08/hubert-horan-can-uber-ever-deliver-part-twenty-three-ubers-already-hopelessly-unprofitable-economics-take-a-major-coronavirus-hit.html
I think globally we are in much better shape to contain any potential US victory for Uber. US employment law is particularly weak, EU legal challenges are not solely operating on individual state law but also GDPR/EU guidelines, and foreign gov'ts have authority to shut down Uber
The question then becomes how do you reverse a ballot victory (I don't think they'll win!) that requires a 7/8 majority to overturn in the legislature and with the threat of a 6-3 conservative majority Supreme Court ruling that eviscerates reclassification prospects nationwide?
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