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INDUSTRY IN REVIEWBy Don McCurdyHow much is too much? At what point is an entity exerting too much control over a driver for the driver not to be declared an independent contractor? That's the question presented in a lawsuit brought by taxicab drivers in Chicago. Drivers contend that they are not employees of the taxicab companies they lease from, but of the city of Chicago who really controls the Chicago cab driver's world. The city tried to get the suit thrown out, but the judge refused. The suit alone should be a warning to cities trying to exert too much control over any industry using independent contractors. Exercise too much control and you'll get sued. Or worse, you'll have a bunch of new employees for whom to provide benefits.
Reports are that all DC taxicabs will be equipped to take credit cards by the end of 2013. Considering how long it took them to get meters in taxicabs it's hard to believe that anything in DC could happen in only six months. I mean, it's possible in theory, but DC drivers are resistant. When it gets down to the end there will be the usual "we need more time" or "the equipment wasn't available" or "the dog ate my homework." Since the city gets to wet its beak on each credit card transaction to the tune of a 25 cent transaction fee I'll bet they're Johnny on the spot getting this deal done. Oh, who pays the 25 cents? The driver of course. The city has just figured out another way to tax the poor and not call it a tax. It's a user fee don't you know. "Politicians say more taxes will solve everything, and the band played on." True in 1970, true today.
Uber is taking a beating in Toronto over a recent "surge" in prices during a recent storm. Traditionally, when bad weather strikes, two things happen:
Now, here comes Uber with the obvious economic solution, increase prices during times of increased demand. Well, that's outrageous! Really? Supply and demand drives the price of damn near everything unless the government steps There is nothing keeping the good citizens of any city Uber operates in from calling a cab or limo company directly to avoid this "surge" in price, but we've all become accustomed to Big Daddy Government fixing the price of our transportation. Well, yeah, but at the old price the driver went home and nobody got service. At the new price people got service. So, the question is really simple, take the reduced service available from existing companies or pay a little more with Uber. Well, there is always walking. That's why they make umbrellas. From a driver's standpoint, who do you want to carry, the cheapskate who doesn't want to kick in a little extra for hazardous conditions or the guy who understands the difference between navigating a dry street versus navigating a monsoon? I would speculate that the people whining the hardest would be first in line for additional pay if they had to work such hazardous duty.
You would think a transit strike would be a boon for taxicab drivers, but it seems that the BART (San Francisco Bay Area Rapid Transit) strike isn't working out for drivers as well as it might because the traffic has everything tied up to the point that they are actually carrying less passengers. Governor Moon Beam was able to get the unions to agree to an extension of the current contract until August but the issues behind the strike remain unsolved. I would be looking for BART to capitulate since the unions definitely have the upper hand. The economic viability of the entire area depends on public transportation. A paralyzing strike would cost the area millions which is what union negotiators depend on. How deep in the red a public transit system is really doesn't matter. Just raise taxes to pay for it.
Lyft is not a taxi service, at least according to them. What it reports to be is a "ride sharing" program that transports for a "suggested donation." Passengers and drivers are rated by each other, so I would guess that you can get kicked off the program if you stiff the driver. Since all of it is handled by credit card there is no particular danger for the driver being robbed or for the passenger being over charged. As more and more government regulations are heaped on the taxicab industry and the competition gets stiffer from groups like Lyft and Uber, it would follow that more taxicab companies will be going under. Since passengers get ratings it would follow that Lyft drivers don't have to put up with passengers with bad attitudes or a history of stiffing the driver. So, let's see:
After all the hoopla of the Zimmerman trial it's hard to not want to comment on the entire sad affair. If you take Zimmerman's account of the encounter at face value, which the police and prosecutor did until it became a media racial hullabaloo, what would be the lesson? Well, what I got from it is if you commit violence it will be met with greater violence. Yes, I wasn't there, but neither were the rest of the media blowhards who put thoughts in Zimmerman's head that he may or may not have ever had. How embarrassing was it to have members of congress fan the flames of racial hatred to no good end? Are these people really leaders? Are we really stupid enough to elect these idiots? Yes, apparently so, and re-elect. Anthony Weiner will probably be the next mayor of New York City. Who could have made up that joke a year ago? Let's keep it simple:
While we haven't heard from the department of injustice I am grateful that I will not have to watch the entire tragedy 24/7 for at least a couple of weeks.
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