Businesses

Uber and Lyft Can't Find Drivers Because Gig Work Sucks (vice.com) 136

An anonymous reader quotes a report from Motherboard: You may have noticed recently that an Uber ride is more expensive than it used to be. As ride-hail companies Uber and Lyft hike prices to record heights during the COVID-19 pandemic, much commentary has settled on explaining this as a consequence of a "labor shortage" largely motivated by a lack of proper financial incentives. Drivers, the story goes, saw the new cash bonuses offered by companies to lure workers back as insufficient. Some, perhaps, decided they were not worth the risk of getting infected with COVID-19 or one of its budding variants, while other analyses suggested drivers were content with living on stimulus funds rather than money from driving. At the same time, the firms began curtailing subsidies that kept prices low enough to attract riders and work towards monopoly. Together, this has left us with a sudden and massive spike in ride-hail prices; Gridwise, a ride-hail driver assistance app, estimated that Uber has increased its prices by 79 percent since the second quarter of 2019.

While Uber and Lyft are reportedly thinking about offering new perks such as education, career, and expense programs, analysts admit these don't strike at core problems with the gig economy that were driving workers away before COVID-19 hit and are making it difficult to attract them now. In conversations with Motherboard, former and current ride-hail drivers pointed to a major factor for not returning: how horrible it is to work for Uber and Lyft. For some workers, this realization came long before the pandemic reared its head, and for others, the crisis hammered it home. Motherboard has changed some drivers' names or granted them anonymity out of their fear of retaliation.
"If I kept driving, something was going to break," said Maurice, a former driver in New York who spent four years working for Uber and Lyft before the pandemic. "I already go nights without eating or sleeping. My back hurt, my joints hurt, my neck hurt, I felt like a donkey. Like a slave driving all the time."

"I've been driving for six years. Uber has taken at least 10,000 pounds in commission from me each year! They take 20 percent of my earnings, then offer me 200 pounds," Ramana Prai, a London-based Uber driver, told Motherboard. "I don't understand how they can take 60,000 pounds from me, then offer nothing when I'm in need. How can I provide for my partner and two kids with this? My employer has let me down."

"I woke up every day asking how long I could keep it up, I just didn't feel like a person," Yona, who worked for Lyft in California for the past six years until the pandemic, told Motherboard. "I got two kids, my mother, my sister, I couldn't see them. And I was doing all this for them but I could barely support them, barely supported myself."

"I was making even less than my sister and I was probably less safe too," Yona's sister, Destiny, told Motherboard. "She got out back in the spring, I hopped on and was coming back negative some days. I tried UberEats and DoorDash to see if that was any better, but stopped after a friend was almost robbed on a delivery. Okay, so the options are get covid or get robbed, then guess what: I'm doing none of them."

Motherboard argues that the degrading working conditions, as well as the poor pay, "are structurally necessary for ride-hail companies. They were necessary to attract and retain customers with artificially low prices, to burn through drivers at high rates that frustrate labor organizing, and bolster the narrative of gig work as temporary, transient, and convenient. It's no wonder, then, that drivers aren't coming back."
Businesses

Uber, Lyft Sweeten Job Perks Amid Driver Shortage, Lofty Fares (wsj.com) 51

A shortage of drivers in the U.S. is propelling prices for Uber and Lyft rides to record highs and pushing the services to rethink how they attract gig workers. From a report: Uber and Lyft are pouring millions of dollars into incentives for drivers to return, a short-term fix that has helped alleviate the scarcity and tempered fare increases in some areas but that has also raised the companies' costs. The labor crunch isn't projected to end anytime soon. Some analysts expect the problem will persist through the third quarter, pressuring Uber and Lyft to deal with shifting dynamics of gig labor that they acknowledge will require long-term solutions.

Executives say the model they built their businesses on -- luring riders with deep discounts and then incentivizing drivers to provide those rides -- can't be the model that sustains them. "This is a moment of deep introspection and reflection for a company like ours to pause and say, 'How do we make the proposition for drivers more attractive longer term?" said Carrol Chang, Uber's chief of driver operations for the U.S. and Canada. "It is absolutely a reckoning," she said. Ms. Chang's team, tasked with managing the shortage for Uber, is in talks to fund education and career-building programs for drivers. Lyft is exploring a new partnership aimed at reducing drivers' expenses, which could involve sizable discounts on gas or insurance or help with buying vehicles, according to a person familiar with its plans. Both companies recently began emailing drivers more insights into earnings opportunities, previously a black box for them.

China

Didi App Pulled from App Stores in China After Suspension Order (techcrunch.com) 14

China has ordered app-store operators to remove the app of Didi from their stores, the latest as tension escalates between the nation's largest ride-hailing giant and local regulators. From a report: The app has disappeared from several stores including Apple's App Store in China, TechCrunch can confirm. The nation's cyberspace administration, which unveiled the order on Sunday, said Didi was illegally collecting users' personal data. The ride-hailing giant, which counts Apple, SoftBank, and Tencent and Uber among its investors and filed for an IPO late last month, has been ordered to make changes to comply with Chinese data protection rules. The move comes after the Chinese internet watchdog announced a probe into Didi over "national security" concerns earlier this week. Didi raised at least $4 billion this week after the New York Stock Exchange debut in one of the largest U.S. IPOs. In a statement, Didi said it had removed its app from various app stores and begun the "corrections." It also said it had halted new user registrations on Saturday. For existing users, the Didi app remains operational.
Businesses

Uber Will Ask Employees To Return To Work 50% of the Time (cnbc.com) 29

Uber on Tuesday told employees it will roll out a hybrid return-to-work model this fall, allowing for a more flexible approach to location and time spent in the office. CNBC reports: The company is asking employees to be in the office 50% of the time. That time can be split up in whatever way works best for employees and their teams, Uber's chief people officer, Nikki Krishnamurthy, wrote in a blog post. That could mean one week on, one week off, or three days one week and two days the next week, for instance. It's a slightly different model than many companies have been choosing, where they ask employees to come in a set number of days each week. Uber employees will also have more flexibility on their preferred office location, the company said. They'll be able to choose from a list of "dedicated team hubs," instead of being limited to their pre-pandemic location.

The new model will likely start this fall. Employees are allowed to continue to work from home until Sept. 13, barring a worsening of Covid-19. "Before then, our team will be able to apply for remote work or potential office changes. It's our goal to have all remote work/location transfers processed by September," a spokesperson told CNBC. Uber is also telling employees they can apply to become fully remote. "We'll also host periodic in-person meetings once our offices reopen so remote employees have the chance to meet and collaborate with their teammates face to face and benefit from in-person interaction and collaboration," Krishnamurthy said.

Electronic Frontier Foundation

'Golden Age of Surveillance', as Police Make 112,000 Data Requests in 6 Months (newportri.com) 98

"When U.S. law enforcement officials need to cast a wide net for information, they're increasingly turning to the vast digital ponds of personal data created by Big Tech companies via the devices and online services that have hooked billions of people around the world," reports the Associated Press: Data compiled by four of the biggest tech companies shows that law enforcement requests for user information — phone calls, emails, texts, photos, shopping histories, driving routes and more — have more than tripled in the U.S. since 2015. Police are also increasingly savvy about covering their tracks so as not to alert suspects of their interest... In just the first half of 2020 — the most recent data available — Apple, Google, Facebook and Microsoft together fielded more than 112,000 data requests from local, state and federal officials. The companies agreed to hand over some data in 85% of those cases. Facebook, including its Instagram service, accounted for the largest number of disclosures.

Consider Newport, a coastal city of 24,000 residents that attracts a flood of summer tourists. Fewer than 100 officers patrol the city — but they make multiple requests a week for online data from tech companies. That's because most crimes — from larceny and financial scams to a recent fatal house party stabbing at a vacation rental booked online — can be at least partly traced on the internet. Tech providers, especially social media platforms, offer a "treasure trove of information" that can help solve them, said Lt. Robert Salter, a supervising police detective in Newport.

"Everything happens on Facebook," Salter said. "The amount of information you can get from people's conversations online — it's insane."

As ordinary people have become increasingly dependent on Big Tech services to help manage their lives, American law enforcement officials have grown far more savvy about technology than they were five or six years ago, said Cindy Cohn, executive director of the Electronic Frontier Foundation, a digital rights group. That's created what Cohn calls "the golden age of government surveillance." Not only has it become far easier for police to trace the online trails left by suspects, they can also frequently hide their requests by obtaining gag orders from judges and magistrates. Those orders block Big Tech companies from notifying the target of a subpoena or warrant of law enforcement's interest in their information — contrary to the companies' stated policies...

Nearly all big tech companies — from Amazon to rental sites like Airbnb, ride-hailing services like Uber and Lyft and service providers like Verizon — now have teams to respond...

Cohn says American law is still premised on the outdated idea that valuable data is stored at home — and can thus be protected by precluding home searches without a warrant. At the very least, Cohn suggests more tech companies should be using encryption technology to protect data access without the user's key.

But Newport supervising police detective Lt. Robert Salter supplied his own answer for people worried about how police officers are requesting more and more data. "Don't commit crimes and don't use your computer and phones to do it."
Businesses

Uber Eats Adds Pricing Disclaimer Requested by Attorneys General (bloomberg.com) 44

Uber added a disclosure to its food delivery app saying menu item prices may be higher than those charged by restaurants, bowing to pressure from attorneys general. From a report: The disclaimer will only be shown to customers in Pennsylvania and Washington, D.C., after the attorneys general there pressed for a concession from the company. They said in a joint statement Tuesday that the change will offer customers more price transparency. Before customers finalize an order, Uber will show a message that reads, "Prices may be lower in store."
Businesses

Blade, the Uber for Helicopters and Chartered Jets, Had a Fake Spokesperson for Three Years (businessinsider.com) 158

For three years until his departure this January, Simon McLaren served as the director of communications for Blade, the urban aviation startup that went public earlier this year at a valuation of more than $800 million. His work in that time was largely what you'd expect of a company spokesperson -- except for the fact that Simon McLaren doesn't actually exist. Business Insider reports: After Insider sought to verify McLaren's identity, Blade CEO Rob Wiesenthal admitted in an interview that McLaren was a made-up persona invented by him and his colleagues, and that Wiesenthal masqueraded as McLaren in telephone conversations with news outlets. The ruse lasted for years, duped numerous journalists, and included a puzzling public drama around McLaren's purported departure from Blade. None of it was real. Numerous news outlets quoted Simon McLaren as though he were a real spokesperson.

McLaren has no substantial online presence outside of a Blade email address, a Twitter account created last December, and a Medium profile created last November. His personal website, created this January, was registered through a proxy, and he uses a 1966 photo of British racing driver Graham Hill across his accounts in place of a profile picture. Still, McLaren has been treated as a real human by a variety of news outlets since his apparent debut in the pages of Vanity Fair in 2018. Serving as the institutional voice of Blade in stories about the company's compliance with federal regulations, medical supply shuttles, and negotiations with the town of East Hampton, McLaren has been quoted by the New York Times, the New York Post, Curbed, the Washington Post, Fox Business, and CNN.

Transportation

'Dozens' of Companies are Now Trying to Build Flying Cars (msn.com) 193

The New York Times shares footage from a flying car's test flight in California — "a single-person aircraft for use in rural areas — essentially a private flying car for the rich — that could start selling this year." (You can read the text of the article here.)

"It may look like a strange beast, but it will change the way transportation happens," they're told by Marcus Leng, the Canadian inventor who designed the aircraft (which he named BlackFly): BlackFly is what is often called a flying car. Engineers and entrepreneurs like Mr. Leng have spent more than a decade nurturing this new breed of aircraft, electric vehicles that can take off and land without a runway. They believe these vehicles will be cheaper and safer than helicopters, providing practically anyone with the means of speeding above crowded streets. "Our dream is to free the world from traffic," said Sebastian Thrun, another engineer at the heart of this movement.

That dream, most experts agree, is a long way from reality. But the idea is gathering steam. Dozens of companies are now building these aircraft, and three recently agreed to go public in deals that value them as high as $6 billion. For years, people like Mr. Leng and Mr. Thrun have kept their prototypes hidden from the rest of the world — few people have seen them, much less flown in them — but they are now beginning to lift the curtain...

Others are building larger vehicles they hope to deploy as city air taxis as soon as 2024 — an Uber for the skies. Some are designing vehicles that can fly without a pilot. One of the air taxi companies, Kitty Hawk, is run by Mr. Thrun, the Stanford University computer science professor who founded Google's self-driving car project. He now says that autonomy will be far more powerful in the air than on the ground, and that it will enter our daily lives much sooner. "You can fly in a straight line and you don't have the massive weight or the stop-and-go of a car" on the ground, he said...

The next few years will be crucial to the industry as it transitions from what Silicon Valley is known for — building cutting-edge technology — to something much harder: the messy details of actually getting it into the world.

Businesses

Uber Offers To Pay For Drivers' Health Insurance, and Then Yanks it Away (theverge.com) 35

Uber mistakenly sent out an email to some of its drivers and delivery workers last month offering to cover some of their health insurance costs -- only to revoke the offer two weeks later. From a report: On May 26th, an email from Uber with the enticing subject line "It's a great time to get health coverage" appeared in the inbox of an unspecified number of the company's drivers and delivery workers. When they opened the email, they were greeted by an even more alluring proposition: "Uber can help cover your healthcare costs." Drivers and couriers for Uber are classified as independent contractors, making them ineligible for employer-sponsored health insurance plans. For years, many of these workers have lobbied for more benefits and protections, only to face vicious opposition from Uber.

So one can only imagine the shock from drivers who opened this email and saw an offer for subsidies ranging from $613.77 to $1,277.54, depending on the type of insurance plan they had and the amount of hours they worked each week. That kind of money could be transformative for drivers, many of whom subsist on poverty-level wages and are struggling to find work amid a steep drop in demand during the pandemic. What could account for this radical change in position by Uber? As it turns out, nothing has changed. Uber intended only to send the email to drivers and delivery workers in California, and not any other state.

The Almighty Buck

Tax Details of US Super-Rich Allegedly Leaked (bbc.com) 399

According to the BBC, details claiming to reveal how little U.S. billionaires pay in income tax have been leaked to investigative website ProPublica. From the report: ProPublica says it has seen the tax returns of some of the world's richest people, including Jeff Bezos, Elon Musk and Warren Buffett. The website alleges Amazon's Mr Bezos paid no tax in 2007 and 2011, while Tesla's Mr Musk's paid nothing in 2018. The FBI and tax authorities are looking into the source of the leak. ProPublica said it was analyzing what it called a "vast trove of Internal Revenue Service data" on the taxes of the billionaires, and would release further details over coming weeks.

ProPublica said the richest 25 Americans pay less in tax -- an average of 15.8% of adjusted gross income -- than most mainstream US workers. The website said: "Using perfectly legal tax strategies, many of the uber-rich are able to shrink their federal tax bills to nothing or close to it." The wealthy, as with many ordinary citizens, are able to reduce their income tax bills via such things as charitable donations and drawing money from investment income rather wage income.

Businesses

A New Worker-Owned Cooperative Starts Competing With Uber and Lyft (nytimes.com) 72

The New York Times reports that for years, Uber and other ride-hailing companies "offered the promise of entrepreneurship to drivers" to drivers eager to set their own schedules. "But some drivers never received the control and independence they had expected." They struggled with the costs of vehicle maintenance, loans and insurance, and they questioned whether Uber and Lyft paid a fair wage. Legislative efforts to grant them employment benefits were thwarted.

Now, dissatisfied drivers and labor advocates are forming worker-owned cooperatives in an attempt to take back some of the money — and power — in the gig economy.

The Drivers Cooperative, which opened for business in New York this week, is the most recent attempt. The group, founded by a former Uber employee, a labor organizer and a black-car driver, began issuing ownership shares to drivers in early May and will start offering rides through its app on Sunday. The cooperative has recruited around 2,500 drivers so far and intends to take a smaller commission than Uber or Lyft and charge riders a lower fare.

It is an ambitious plan to challenge the ride-hailing giants, and it faces the same hurdles that tend to block other emerging players in the industry: Few have the technical prowess, the venture capital dollars or the supply of readily available drivers to subvert an established company like Uber. Still, drivers who joined the effort said even a small cooperative could make a big difference in their work, allowing them to earn more money and have a say in the way the company was run. The Drivers Cooperative said it planned to pay 10 percent above the wage minimums set by the city's Taxi and Limousine Commission, and return profits to drivers in the form of dividends.

One of the labor organizers who founded the Drivers Cooperative tells the Times that "I've never seen this hunger for change that exists with drivers."
Transportation

California Will Require Uber, Lyft Drivers To Transition To Electric Cars (thehill.com) 120

Slashdot reader PolygamousRanchKid quotes The Hill: California is requiring ride-sharing companies such as Uber and Lyft to transition from gasoline to electric vehicles (EVs) in their networks by the end of this decade.

The state's clean-air regulator on Thursday unanimously approved the Clean Miles Standard mandating that EVs account for 90 percent of ride-hailing vehicle miles traveled in California by 2030. The ride-share companies will have to begin the electrification of their fleets in 2023. The move by the California Air Resources Board (CARB) is part of California's effort to phase out gas-powered vehicles and reduce greenhouse gas emissions and become carbon neutral by 2045. Gov. Gavin Newsom (D-Calif.) last year signed an executive order requiring all new cars and passenger trucks sold in the state of nearly 40 million residents be zero-emission by 2035. "The transportation sector is responsible for nearly half of California's greenhouse gas emissions, the vast majority of which come from light-duty vehicles," CARB Chair Liane M. Randolph said in a statement...

Both Uber and Lyft have already committed to converting their fleets entirely to EVs by 2030 and have made efforts to help drivers make the shift.

The companies have said, however, California needs to spend more money to help drivers afford the zero emissions vehicles, according to Reuters.

Government

Opposing PRO Act, Uber and Other Gig Companies Spend Over $1 Million Lobbying (theintercept.com) 81

An anonymous reader quotes a report from The Intercept: Even as President Joe Biden called for Congress during his joint address last week to pass labor reform legislation, a slate of gig companies has spent over $1 million lobbying Congress to influence the PRO Act and other related issues in 2021 alone, according to newly released lobbying disclosures. Ride-hailing companies Uber and Lyft and delivery apps DoorDash and Instacart spent at least $1,190,000 on 32 lobbyists to persuade members of Congress on the PRO Act, first quarter disclosure reports show. The bill, which the House of Representatives passed in early March, would allow many gig workers to unionize and make it harder for companies to union-bust, among other changes.

Uber alone spent $540,000 in the first quarter of 2021 lobbying on "issues related to the future of work and the on-demand economy, possible anti-competitive activities that could limit consumers access to app-based technologies," the PRO Act, and other related labor issues. Lyft spent $430,000, DoorDash $120,000, and Instacart $100,000 on lobbying on the PRO Act and other issues, according to disclosures. The PRO Act would make the most pivotal changes to labor law since the 1970s. In addition to giving many gig workers the right to unionize, it would grant employees whistleblower protections and prohibit companies from retaliating against participants in strikes and other union-related activities. A 2019 report from Gallup commissioned by Intuit estimated that 17 percent of U.S. adults engaged in self-employment. These reforms threaten the profits of gig companies, which rely on a large and fluid group of independent contractors.

Businesses

Biden Blocks Trump's Gig-worker Rule (protocol.com) 109

The Biden administration has blocked a Trump-era rule that would have made it easier for companies like Uber, Lyft and Instacart to continue classifying rideshare drivers and delivery workers as independent contractors under federal law. From a report: The rule pertained to the classification of gig workers under the Fair Labor Standards Act, which requires employers to pay non-exempt employees at least the federal minimum wage. The Trump administration published the rule in January 2021, and it was originally set to go into effect on March 8. In February, Biden's labor department delayed implementation until May 7. Now, the Department of Labor has officially withdrawn the rule. The decision to rescind the rule does not mean gig workers will be considered employees. But it does mean certain gig workers won't face an additional obstacle in their efforts to be classified as employees. The rule would have implemented a new interpretation of what type of worker is an independent contractor. The DOL, however, determined that it would have "narrowed the scope of facts and considerations" in determining whether someone is an independent contractor or employee.
Businesses

US Labor Secretary Says Most Gig Workers Should Be Classified as Employees, Prompting Shares of Uber, Lyft, Doordash and Grubhub To Crash (reuters.com) 213

President Joe Biden's top labor official said Thursday that most gig workers in the United States should be classified as "employees" deserving of related benefits, in what could be a policy shift that is likely to raise costs for companies that depend on contractors such as Uber and Lyft and impact millions of workers. From a report: Shares of Uber fell as much as 8 percent while Lyft dived as much as 12 percent. Doordash fell nearly 9 percent and Grubhub was down 3.3 percent. Labor Secretary Marty Walsh, a son of Irish immigrants and a former union member, has been expected to boost President Biden's efforts to expand workers' protections and deliver a win for the country's organized labor movement.

"We are looking at it but in a lot of cases gig workers should be classified as employees... in some cases they are treated respectfully and in some cases they are not and I think it has to be consistent across the board," Walsh told Reuters in an interview, expressing his view on the topic for the first time. "These companies are making profits and revenue and I'm not (going to) begrudge anyone for that because that's what we are about in America... but we also want to make sure that success trickles down to the worker," he said.

Social Networks

Uber and Just Eat Takeaway CEOs Spar on Twitter as European Food Delivery Battle Heats Up (cnbc.com) 18

The CEOs of Uber and Just Eat Takeaway on Wednesday became engaged in a public spat after Uber announced it is planning to launch in Germany -- a market that is currently dominated by Just Eat Takeaway. From a report: Uber Eats will launch in Berlin in the next few weeks and potentially expand into other German cities in the coming months. The news was first reported by The Financial Times and confirmed to CNBC. Just Eat Takeaway CEO Jitse Groen accused Uber CEO Dara Khosrowshahi of trying to "depress" his firm's share price on Twitter on Wednesday. Shares of Just Eat Takeaway closed down almost 3%. Khosrowshahi responded: "Advice: pay a little less attention to your short term stock price and more attention to your Tech and Ops." Shortly thereafter, Groen replied: "If I may ... start paying taxes, minimum wage and social security premiums before giving a founder advice on how he should run his business."
Transportation

Uber, Lyft Tout US Ride-Hail Driver Pay, Incentives Amid Demand Uptick (reuters.com) 26

Uber and Lyft said U.S. drivers on their ride-hail platforms were earning significantly more than before the pandemic as trip demand outstrips driver supply, prompting the companies to offer extra incentives. From a report: Uber on Wednesday said it would invest an additional $250 million to boost driver earnings and offer payment guarantees in an effort to incentivize new and existing drivers. Uber's Vice President of U.S. & Canada Mobility, Dennis Cinelli, in a blog post told drivers to take advantage of higher earnings before pay returns to pre-COVID-19 levels as more drivers return to the platform. Lyft on Tuesday said drivers in the company's top-25 markets were earning an average of $36 per hour compared to $20 per hour pre-pandemic. Those numbers include tips, but Lyft did not disclose the share of tips in earnings. Lyft is also offering additional incentives and promotions in select markets. Further reading: Uber and Lyft have a driver shortage problem, and it's costing them a lot of money
Facebook

Facebook Says It's Your Fault That Hackers Got Half a Billion User Phone Numbers (vice.com) 65

A database containing the phone numbers of more than half a billion Facebook users is being freely traded online, and Facebook is trying to pin the blame on everyone but themselves. From a report: A blog post titled "The Facts on News Reports About Facebook Data," published Tuesday evening, is designed to silence the growing criticism the company is facing for failing to protect the phone numbers and other personal information of 533 million users after a database containing that information was shared for free in low level hacking forums over the weekend, as first reported by Business Insider. Facebook initially dismissed the reports as irrelevant, claiming the data was leaked years ago and so the fact it had all been collected into one uber database containing one in every 15 people on the planet -- and was now being given away for free -- didn't really matter.

So instead of apologizing for failing to keep users' data secure, Facebook's product management director Mike Clark began his blog post by making a semantic point about how the data was leaked. "It is important to understand that malicious actors obtained this data not through hacking our systems but by scraping it from our platform prior to September 2019," Clark wrote. This is the identical excuse given in 2018, when it was revealed that Facebook had given Cambridge Analytica the data of 87 million users without their permission, for use in political ads. Clark goes on to explain that the people who collected this data -- sorry, "scraped" this data -- did so by using a feature designed to help new users find their friends on the platform.

Businesses

Uber May Stop Letting Drivers See Destinations and Name Prices (sfchronicle.com) 141

An anonymous reader shares a report: A year ago, Uber let its California drivers see ride destinations before picking up passengers and let them set pricing in an effort to prove that the drivers were truly independent contractors. It was part of the company's strategy to block drivers from being reclassified as employees under AB5, California's gig-work law. Now, Uber is acknowledging that the move has hurt business and is considering axing its visible destinations and price-naming policies, The Chronicle has learned. The see-saw may disappoint drivers who appreciated that extra control over their work.

Too many drivers cherry-pick lucrative rides and decline other requests, making the service unreliable, the San Francisco company said on Monday. Uber no longer has to worry about proving that drivers are independent contractors, because Prop 22 -- the November ballot measure that Uber and fellow gig companies spent $220 million to pass -- enshrines their non-employee status.

China

China Creates Its Own Digital Currency, a First for Major Economy (wsj.com) 136

A thousand years ago, when money meant coins, China invented paper currency. Now the Chinese government is minting cash digitally, in a re-imagination of money that could shake a pillar of American power. From a report: It might seem money is already virtual, as credit cards and payment apps such as Apple Pay in the U.S. and WeChat in China eliminate the need for bills or coins. But those are just ways to move money electronically. China is turning legal tender itself into computer code. Cryptocurrencies such as bitcoin have foreshadowed a potential digital future for money, though they exist outside the traditional global financial system and aren't legal tender like cash issued by governments.

China's version of a digital currency is controlled by its central bank, which will issue the new electronic money. It is expected to give China's government vast new tools to monitor both its economy and its people. By design, the digital yuan will negate one of bitcoin's major draws: anonymity for the user. Beijing is also positioning the digital yuan for international use and designing it to be untethered to the global financial system, where the U.S. dollar has been king since World War II. China is embracing digitization in many forms, including money, in a bid to gain more centralized control while getting a head start on technologies of the future that it regards as up for grabs. "In order to protect our currency sovereignty and legal currency status, we have to plan ahead," said Mu Changchun, who is shepherding the project at the People's Bank of China. Digitized money could reorder the fundamentals of finance the way Amazon.com disrupted retailing and Uber rattled taxi systems. That an authoritarian state and U.S. rival has taken the lead to introduce a national digital currency is propelling what was once a wonky topic for cryptocurrency theorists into a point of anxiety in Washington. Asked in recent weeks how digitized national currencies such as China's might affect the dollar, Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell have said the issue is being studied in earnest, including whether a digital dollar makes sense someday.

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