California says Uber drivers are employees, not independent contractors. This could dramatically change Uber’s business model and have broader implications upon the rest of the sharing economy. Uber maintained that it was simply an app and they are in the business of creating less friction between the passenger and driver. The court noted that drivers were provided a cellphone, which demonstrated that Uber asserted control.
As independent contractors for companies such as Lyft and Uber, drivers pay all their expenses out of pocket: gas, maintenance, insurance, and detailing, just to name a few.
The drivers, should they win lawsuits against Uber, could be entitled to hourly wages or a regular salary, as well as reimbursement for the money they have spent on things like gas and insurance as drivers for Uber and Lyft. This could cause Uber to also increase its prices that it charges to its customers.
If you are thinking about starting up a Uber clone, I would strongly advise factoring the costs of paying your workers as employees into the equation. And if you know anyone who drives for Uber of Lyft, tell them to give me a call :).
Improperly classifying a worker as an independent contractor instead of an employee can be a huge headache. Just this morning, I received a phone call from a potential client who owns cellphone stores in NYC. He is accused of not properly classifying his workers as employees. He is now subject to tens of thousands of dollars in fines. This could be the nail in the coffin for his business.
If you are thinking about starting up an Uber clone, I would strongly advise factoring costs of classifying your workers as potential employees into consideration. If you own a business, I would conduct an audit of all workers to ascertain their proper employment status.
QUESTION(S) OF THE DAY: I was recently listening to the Tim Ferriss Show podcast via my iPhone’s Stitcher app. Tim Ferris is basically a cross between Elon Musk and Rick Rubin. He was having a conversation with Kevin Rose. Kevin Rose is an Internet entrepreneur who co-founded Revision3, Digg, Pownce, and Milk. Kevin Rose recently stepped away from his role as an investor at Google Ventures to work full-time on his mobile app development startup.
Tim and Kevin both meditate. Let’s look at the meditation tactics from Tim Ferriss and Kevin Rose:
– Meditate 1x or 2x per day
– Meditate for 15 to 20 minutes
– Meditate consistently (Tim Ferriss has been meditating for over 1.5 years)
– You can use an app like Headspace or calm, for guided Meditation
Check out the video of the conversation here:
|Tim Ferriss and Kevin Rose talking about meditation
Back in the 1970’s when I was still a kid, my parents dragged me along with my sister to Mineola for transcendental meditation (TM) lessons. Back then, the Beatles were most closely associated with TM. The Beatles were searching for answers to some of life’s larger questions. This search would lead them to meditation. Now meditation is associated with the highest achieving entrepreneurs.
My mom still meditates daily. Me, not so much. I find it great as a relaxation tool. Meditation is also the ultimate power nap. If you are tired work, try it. However, I do find it challenging to do everyday when there are so many other things need to be accomplished.
Do you meditate? If so, do you see any improvement in your life? Has your business performance improved?
If you do not meditate, why don’t you? Does it have too much of a bad rap? You don’t have the time?