Businesses

Uber Wins Key Ruling In Its Fight Against Treating Drivers As Employees (arstechnica.com) 177

A federal appeals court ruled on Tuesday that drivers "seeking to be classified as employees rather than independent contractors must arbitrate their claims individually, and not pursue class-action lawsuits," reports Reuters. Ars Technica explains the significance of this ruling: Employees are guaranteed to earn federal minimum wage and are entitled to overtime pay if they work more than 40 hours per week. Uber employees, in contrast, are paid by the ride and might earn much less than minimum wage if they drive at a slow time of day. California law also gives employees the right to be reimbursed for expenses they incur on the job, which would be significant for Uber drivers who otherwise are responsible for gas, maintenance, insurance, and other expenses of operating an Uber vehicle.

Hence, the question of whether Uber drivers are employees or independent contractors is a big and important one. It's also a question that isn't addressed at all in Tuesday's ruling, as the courts never get to the substance of the plaintiffs' arguments about employment law. Instead, a three-judge panel of the 9th Circuit court ruled that the drivers signed away their rights to sue in court when they signed up to be Uber drivers. Uber's agreement with drivers requires that this kind of dispute be handled by private arbitration rather than by a lawsuit in the public courts. The court cited a Supreme Court ruling handed down in May that held that federal labor law did not preempt arbitration agreements. [...] the decision means that each driver's case must be fought on an individual, case-by-case basis. Class-action lawsuits in the federal courts allow plaintiffs to effectively pool their resources. [...] But under arbitration, each driver's case will be considered individually. Most won't have the resources to afford top-tier legal representation, and drivers won't have the inherent leverage that comes from being able to bargain as a group.

The Almighty Buck

Uber Drivers and Other Gig Economy Workers Are Earning Half What They Did Five Years Ago (recode.net) 153

According to a new study by the JPMorgan Chase Instittue, drivers who transport people via apps (e.g. Uber, Lyft, Uber Eats, Postmates) made 53 percent less in 2017 than they did in 2013. Recode reports: The average monthly payments to those who worked for a transportation app in a given month declined to $783 from $1,469. Meanwhile, people working for leasing apps -- Airbnb, Turo, Parklee and other apps that let you rent assets like your home, car or parking space -- saw their incomes from those platforms rise 69 percent to $1,736 on average.

This is happening as online gig work has become more popular, thanks in large part to the growth in the number of transportation jobs. The share of the working population that has participated in the online gig economy at any point in a year rose from less than 2 percent in 2013 to nearly 5 percent in 2018. There are a number of potential reasons why the average pay for gig economy drivers has gone down. It could be any or all of the below, according to JPMorgan: drivers on average are working fewer hours; demand hasn't increased to meet the increased number of drivers; trip prices have fallen; or platforms are paying drivers lower rates.

IBM

IBM is Being Sued For Age Discrimination After Firing Thousands (bloomberg.com) 115

A lawyer known for battling tech giants over the treatment of workers has set her sights on International Business Machines Corp. Bloomberg reports: Shannon Liss-Riordan on Monday filed a class-action lawsuit in federal court in Manhattan on behalf of three former IBM employees who say the tech giant discriminated against them based on their age when it fired them. Liss-Riordan, a partner at Lichten & Liss-Riordan in Boston, has represented workers against Amazon, Uber and Google and has styled her firm as the premier champion for employees left behind by powerful tech companies. "Over the last several years, IBM has been in the process of systematically laying off older employees in order to build a younger workforce," the former employees claim in the suit, which draws heavily on a ProPublica report published in March that said the company has fired more than 20,000 employees older than 40 in the last six years.

The lawsuit comes as IBM faces questions about its firing practices. In exhaustive detail, the ProPublica report made the case that IBM systematically broke age-discrimination rules. Meanwhile, the Equal Employment Opportunity Commission has consolidated complaints against IBM into a single, targeted investigation, according to a person familiar with it.
Further reading: IBM Fired Me Because I'm Not a Millennial, Alleges Axed Cloud Sales Star in Age Discrim Court Row, and IBM is Telling Remote Workers To Get Back in the Office Or Leave.
Earth

How Tech Companies Responded To Hurricane Florence (qz.com) 79

112-mph winds from Hurricane Florence battered the Carolinas on Saturday, resulting in at least 13 deaths and leaving more than 796,000 households with no electricity, according to CNN, with over 20,000 people evacuating to emergency shelters.

One Myrtle Beach resident spotted an alligator walking through their neighborhood, and the New York Post warns the hurricane "could displace venomous snakes from South Carolina's wetlands," uprooting "some 38 species of snakes -- including dangerous cottonmouths and copperhead vipers."

Cellphone carriers are offering free calling, texting, and data services to affected customers in the Carolinas, and Quartz reports that other tech companies are also trying to help: People fleeing Florence can find hundreds of places on Airbnb to stay for free; the company will screen applicants and cover homeowners for any damage up to $1 million. Harmany is an app created specifically to connect people during natural disasters. It's set up so that people who have a place can list it, adding it to a map where those needing shelter can find them. Gas Buddy, which lets users search for gas prices and availability by zip code, has set up a special "Florence Live Updates" page and section on its app so users can identify which gas stations are out of fuel, diesel, or power....

The main federal disaster agency, the Federal Emergency Management Agency (FEMA), has an app that is supposed to provide up-to-the minute information about the storm, shelters, and evacuation routes. It is crashing constantly, according to Android users. (Quartz's didn't have the same problems, but hitting the "get directions" button to one North Carolina shelter inexplicably opened up Uber.) FEMA also recommends the Red Cross's Hurricane app, which shows location specific weather alerts, has a flashlight and an alarm, and allows users to connect with people in their contacts, but doesn't have information on shelters.

And the data backup company Datto is even deploying equipment for free to bring back critical infrastructure. "With this storm, it looks like flooding will be as much of a danger as wind. It doesn't take a lot of water to knock out infrastructure like cable and internet. Things that can take weeks to build it back..."
Businesses

Uber Glitch Stops Payments To Drivers, Prices Surge (sandiegoreader.com) 90

Uber is still trying to fix a glitch that's been stopping its drivers from collecting the money they've earned for several days. An anonymous reader writes: One Uber driver says the problem's lasted over a week, and he's owed more than $1,300. "They've been continually telling us that it would be corrected within 24 hours," he told a Bay Area news station. "We still can't access the money.... We're in a situation where for a lot of us we have bills every day, we pay tolls every day, we pay gas every single day."

Now the San Diego Reader reports the issue "is forcing San Diego drivers off the road," with the shortage of drivers triggering surge pricing throughout the entire region as much as triple the usual rate. Surge pricing is also hitting riders in Dallas, according to another Uber driver's tweet, who complains "It's a shame that a $48 billion 'tech' company can't get it together.

In a statement promising they'd still pay all their drivers, Uber acknowledged their payment system was still broken, "and we sincerely regret any inconvenience."

"The glitch in the payment system also means that trip and safety issues are unable to be reported, either by the passenger, or the driver," notes the San Diego Reader, adding that the city's Uber's drivers "continue to decline to work, either staying off the road of switching to another ride-sharing service."
United States

58% of Silicon Valley Tech Workers Delayed Having Kids Because of Housing Costs (chicagotribune.com) 209

An anonymous reader quotes the Mercury News: Though some residents blame the area's highly paid tech workers for driving up the cost of housing, data increasingly shows that these days, even tech workers feel squeezed by the Bay Area's scorching prices. Fifty-eight percent of tech workers surveyed recently said they have delayed starting a family due to the rising cost of living, according to a poll that included employees from Apple, Uber, Google, LinkedIn, Facebook, Lyft, and other Bay Area companies.

The recently released poll, was conducted by Blind, an online social network designed to let people share anonymous opinions about their workplaces. Blind surveyed 8,284 tech workers from all over the world, with a large focus on the Bay Area and Seattle. Blind spokeswoman Curie Kim said the findings were "really surprising. In the Bay Area, tech employees are known to make one of the highest salaries in the nation," she said, "but if these people also feel that they can't afford housing and they can't start a family because of the rising cost of living, who can....?"

The average base salary for a software engineer at Apple is $121,083 a year, the article notes, yet the company also had the largest percentage of surveyed tech employees who said they'd been force to delay starting their families -- 69%.

"Anywhere else in the country, we'd be successful people who owned a home and didn't worry about anything," said one 34-year-old in a two-income family. "But here, that's not the case." While her husband helps Verizon deploy smart devices with IoT technology, they're raising two daughters in a rented Palo Alto apartment, "only to experience a $500 rent increase over two years."
Businesses

Limo Firm To Uber: You Misclassify Your Drivers As Contractors, Which Is Unfair (arstechnica.com) 69

An anonymous reader quotes a report from Ars Technica: A Southern California limousine company sued Uber in federal court earlier this week, alleging violations of state unfair-competition laws. While a company suing Uber is not new, the proposed class-action lawsuit appears to rely on a recently decided California Supreme Court decision that makes it more difficult for companies to unilaterally declare their workers as contractors, which effectively deprives them of benefits that they would otherwise receive as employees.

In that case, known as Dynamex, the court came up with a three-part test to figure out whether companies can assert contractor status or not. The new case is called Diva Limousine v. Uber. Some legal experts say that the earlier decision in Dynamex may bolster an argument in this new case around unfair competition that has previously been difficult to win on in federal court. In short, Diva Limousine just might succeed where other federal lawsuits have failed.

Businesses

Replace 'Tech' With 'Banks,' and We've Seen a Big Comeuppance Before (nytimes.com) 116

Nathaniel Popper, writing for The New York Times: When I moved to the Bay Area two years ago, it was with a sense of relief. Relief from New York winters and deteriorating subways, yes. But also relief after six years of covering Wall Street, an industry that had moved from one crisis to another after the financial crash of 2008, drawing the unending wrath of the public. In California I was joining a growing team of reporters covering Silicon Valley, which had quickly become the new engine of the economy. Just like Wall Street before it lost its luster, the tech industry had become the destination of choice for the top college graduates. I would be writing about a place where everyone was focused more on the future than on the past.

Now, just two years after getting here, and a decade after the start of the financial crisis, I have a creeping sense of deja vu as I go about my job. Admiration of the tech world has, in the wake of a growing list of scandals, quickly soured into an intense suspicion that manages to cross partisan lines, similar to what Wall Street faced after 2008 [Editor's note: the link may be paywalled]. As I have watched the recent parade of tech executives being grilled by Washington lawmakers from across the political spectrum, it has been eerily reminiscent of the combative hearings the big banks faced back in 2009 and 2010. As was true after the financial crisis, the backlash against tech rises out of a public awakening to the integral role that these huge companies occupy in our society -- with Facebook, Uber and Twitter playing the part that Goldman Sachs and JPMorgan Chase did a decade ago.

Programming

Study Finds 58% of Tech Employees Feel Like Frauds (cnet.com) 224

"Feeling like a hack is more common than you might think," writes CNET: In fact, 58 percent of people with technology-focused careers suffer from Impostor Syndrome, according to a new informal study from workplace social media site Blind... Blind's user base includes 44,000 Microsoft employees, 29,000 from Amazon, 11,000 from Google, 8,000 from Uber, 7,000 from Facebook, and 6,000 from Apple, just to name a few. From Aug. 27, 2018 through Sept. 5, 2018, Blind asked its users one question in a survey -- "Do you suffer from Impostor Syndrome?" A total of 10,402 users on Blind responded.

Blind found that 57.55 percent surveyed experienced Impostor Syndrome. Seventy-two percent of Expedia employees say they experienced Impostor Syndrome, the highest among companies with at least 100 employee responses. On the lower end of the spectrum, only 44.45 percent of Apple employees experienced impostor syndrome.

Transportation

Scooter Use is Rising in Major Cities. So Are Trips To the Emergency Room. (washingtonpost.com) 136

They have been pouring into emergency rooms around the nation all summer, their bodies bearing a blend of injuries that doctors normally associate with victims of car wrecks -- broken noses, wrists and shoulders, facial lacerations and fractures, as well as the kind of blunt head trauma that can leave brains permanently damaged. The Washington Post reports: When doctors began asking patients to explain their injuries, many were surprised to learn that the surge of broken body parts stemmed from the latest urban transportation trend: shared electric scooters. In Santa Monica, Calif. -- where one of the biggest electric-scooter companies is based -- the city's fire department has responded to 34 serious accidents involving the devices this summer. The director of an emergency department there said his team treated 18 patients who were seriously injured in electric-scooter accidents during the final two weeks of July. And in San Francisco, the doctor who runs the emergency room at a major hospital said he is seeing as many as 10 severe injuries a week.

[...] As the injuries pile up in cities across the country, the three largest scooter companies -- operating under the names Bird, Lime and Skip -- have seen their values soar as they attempt to transform urban transit, following the successes of ride-hailing and bike-sharing companies. The scooter start-ups have attracted massive investments from Uber, the prominent technology venture capital firm Sequoia Capital and Alphabet, Google's parent company, with some analysts estimating that some of the privately held companies might be worth more than $1 billion.
Responding to The Post, all these companies said safety is a priority to them, but at least Bird is also lobbying against legislation in California that would require users to wear helmets, the paper reported.
Cellphones

Uber Will Turn Your Smartphone Into An Automatic Crash Detector (theverge.com) 57

Uber is introducing a new safety feature called "Ride Check" that will use GPS, accelerometer, gyroscope, and other sensors inside a smartphone to detect whether there has been a vehicle crash. The Verge reports: In the event of a crash, the Uber app will automatically send a notification to a rider's phone to answer a series of questions. If they verify that there has been an accident, the rider will be prompted to call 911. Uber's team of safety operators may also reach out to ensure the rider is safe when the feature is triggered. The feature doesn't require any new permissions because it is linked to the driver's smartphone, rather than the riders. Drivers have the Uber app on more frequently than riders, who typically keep the app on in the background during trips.

Ride Check isn't just for crashes, though. The feature is also triggered if the vehicle stops for a prolonged or unusual period of time. Riders will receive a notification asking them if everything is alright, and based on their response, the app will present a series of options, including a call to 911. The ride-hail company also released a number of other features, including voice commands and an insurance hub for Uber drivers, new ways to mask addresses and phone numbers between riders and drivers, and two-factor authentication to protect a rider's account from malicious hacking.

Australia

Uber To Ban Riders With Four-Star or Lower Ratings in Australia and New Zealand (bbc.co.uk) 208

Uber is to block customers in Australia and New Zealand from its ride service if they have a low passenger rating. Riders rated four-out-of-five stars or lower will be banned for six months. Ratings are based on feedback left by drivers after each journey. BBC: The move is aimed at improving passenger behaviour, the company said. Uber told the BBC that Australia and New Zealand had been identified as a place to bring in the rule after feedback from drivers. The same policy was introduced in Brazil earlier this this year, Uber said, but it's the first time the control has been rolled out in an English-speaking market. An Uber spokeswoman declined to be drawn on exactly how many of its 2.8 million users in Australia and New Zealand currently had ratings of below 4.0 -- but conceded it was only "a few thousand." The "vast majority" -- believed to be more than 90% -- had ratings of at least 4.5, the company said. The policy will kick in on 19 September and passengers will receive several warnings before they are banned.
Businesses

Silicon Valley Has Been Treating Workers 'Miserably' Since the 1970s, Economic Historian Says (recode.net) 153

Don't blame Uber for the problems of the gig economy -- they didn't start it, economic historian Louis Hyman says. Recode: "Uber is the waste product of the service economy," Hyman said on the latest episode of Recode Decode, a podcast. "It relies on a bunch of people who don't have an alternative." Hyman told Recode that the number of people who have to rely on temporary, freelance or other "alternative work arrangements" has been growing since the 1970s, when the era of bloated corporations gave way to businesses that optimized for short-term profits and began treating workers as disposable. "The alternative to driving for Uber is not a good job in a factory with a union wage or working in a stable office job, it's slinging coffee at a Starbucks where you may or may not get the hours you need," he said. "That is what people are shoring up. They're shoring up getting enough hours, trying to make ends meet. Oftentimes, people talk about the gig economy as 'supplementary income' ... It's not supplemental if you need it to pay for your kids' braces, or food, or rent." Hyman argued that this phenomenon could be traced back to the legions of undocumented migrant laborers who built early computers, before those manufacturing jobs moved overseas.
Transportation

Silicon Valley Takes a (Careful) Step Toward Autonomous Flying (nytimes.com) 37

Last week, at a tiny airport in the dusty flatlands east of San Francisco, a red-and-white helicopter lifted gently into the air, hovering a few feet over the tarmac. It looked like any other helicopter, except for the small black cube attached to its nose. From a report: Local officials spent the week testing this aircraft for a new emergency service, due for launch in January, that will respond to 911 calls via the air. But as this helicopter moves police officers and medical workers over the San Joaquin Valley, it will feed a more ambitious project. That black cube is part of a growing effort to build small passenger aircraft that can fly on their own. Today, the helicopter is flown by seasoned pilots. But the new emergency service will be operated by SkyRyse, a Silicon Valley start-up that intends to augment small helicopters and other passenger aircraft with hardware and software that allow for autonomous flight, leaning on many of the same technologies that power driverless cars. These include the 360-degree cameras and radar sensors built into the nose of the aircraft.

"There are many things that must come to fruition before autonomous aircraft start flying people," said Mark Groden, a co-founder and the chief executive of SkyRyse. "But we are developing the technology that can take us there." Sikorsky, a subsidiary of the defense contractor Lockheed Martin, and Xwing, another Silicon Valley start-up, are fashioning similar technology. Others, including Aurora, a company now owned by Boeing, are exploring autonomous flight as they build a new kind of electrical aircraft for "flying taxi services." The initial business plan for Uber's air taxi service, which it hopes to start in five to 10 years, said it would eventually remove pilots from the aircraft.

Japan

Japan Wants To Bring Flying Cars To Its Skies (bloomberg.com) 52

Japan is making a push to develop flying cars, enlisting companies including Uber and Boeing in a government-led group to bring airborne vehicles to the country in the next decade. From a report: The group will initially comprise 21 businesses and organizations, including Airbus, NEC, a Toyota Motor-backed startup called Cartivator, ANA, Japan Airlines, and Yamato, according to a statement Friday from the trade ministry in Tokyo. Delegates will gather Aug. 29 to help chart a road map this year, it said. "The Japanese government will provide appropriate support to help realize the concept of flying cars, such as creation of acceptable rules," the ministry said. Flying cars that can zoom over congested roads are closer to reality than many people think. Startups around the world are pursuing small aircraft, which were until recently only in the realm of science fiction. With Japanese companies already trailing their global peers in electric vehicles and self-driving cars, the government is showing urgency on the aircraft technology, stepping in to facilitate legislation and infrastructure to help gain leadership.
Businesses

Gig Economy Pressures Make Drivers 'More Likely To Crash' (bbc.com) 109

Drivers and couriers who get their work from apps face a "heightened risk" of crashes, a study suggests. From a report: Research from University College London (UCL) indicated 42% of "gig-economy" couriers and taxi drivers reported vehicle damage because of a collision. Close to half admitted time pressure could make them break the speed limit. Distraction by smartphones and tiredness from overwork were also flagged as risks for those delivering food and parcels. The report draws on 200 responses to an online survey from drivers and couriers, as well as 48 in-depth interviews. The study does not focus on any one particular company, although Uber and Deliveroo are both named as examples of companies that enable gig-economy work -- where employees are not paid a salary but instead get money for each job completed. Of those surveyed, 63% said they had not been provided with safety training on managing risks on the road, while one in 10 reported someone had been injured in a crash while they had been working.
Businesses

Uber Loses $900 Million In Second Quarter; Urged By Investors To Sell Off Self-Driving Division (bloomberg.com) 228

Last week, Uber reported a second-quarter loss of $891 million, even though it brought in $2.8 billion in revenue. "While it's a 16 percent improvement from a year earlier, the loss follows a rare profit posted in the first quarter, thanks largely to the sale of overseas assets," reports Bloomberg. As a result, the company is being pressured by investors to sell its self-driving cars unit, which Uber is spending $125-200 million a quarter to maintain. From the report: Even after increased spending last quarter, revenue growth is slowing. Sales rose 63 percent to $2.8 billion in the second quarter compared with the same period last year. The rate in the first quarter was 70 percent. [Uber CEO Dara Khosrowshahi] Khosrowshahi is pouring large, undisclosed sums of money into food delivery, logistics and autonomous-car technology. The San Francisco-based company has said the food delivery business, Uber Eats, represents more than 10 percent of its gross bookings. Growth in that segment may be masking a slowdown in Uber's main business.
Transportation

New York City Just Voted To Cap Uber and Lyft Vehicles and Require Drivers To Be Paid a Minimum Wage (cnbc.com) 247

New York City Council passed regulations on ride-hail companies on Wednesday, capping the number of vehicles on the road for one year and requiring that drivers to be paid a minimum wage. From a report: Council Speaker Corey Johnson said earlier that the regulations are intended to protect drivers, fairly regulate the industry and reduce congestion. The year-long cap on new licenses for ride-hailing vehicles will take place while the Taxi and Limousine Commission (TLC) studies the effects of ride-hail service in the city. The cap would not apply to new wheelchair-accessible vehicles or new vehicles serving an area demonstrating need in a way that does not increase congestion. App-based ride services account for 80,000 vehicles in New York City, and provide 17 million rides per month, according to a study by The New School for the TLC. The surge in ridership coincided with increased resident frustration with the local subway system. With the move on Wednesday, New York City, the largest American market for Uber, has become the first major American city to restrict the number of ride-hail vehicles and to establish pay rules for drivers. In a statement issued moments ago, New York Mayor Bill de Blasio said," Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock. The unchecked growth of app-based for-hire vehicle companies has demanded action -- and now we have it."
Google

As Google Maps Renames Neighborhoods, Residents Fume (nytimes.com) 187

An anonymous reader shares a report: For decades, the district south of downtown and alongside San Francisco Bay here was known as either Rincon Hill, South Beach or South of Market. This spring, it was suddenly rebranded on Google Maps to a name few had heard: the East Cut. The peculiar moniker immediately spread digitally, from hotel sites to dating apps to Uber, which all use Google's map data. The name soon spilled over into the physical world, too. Real-estate listings beckoned prospective tenants to the East Cut. And news organizations referred to the vicinity by that term.

"It's degrading to the reputation of our area," said Tad Bogdan, who has lived in the neighborhood for 14 years. In a survey of 271 neighbors that he organized recently, he said, 90 percent disliked the name. The swift rebranding of the roughly 170-year-old district is just one example of how Google Maps has now become the primary arbiter of place names. With decisions made by a few Google cartographers, the identity of a city, town or neighborhood can be reshaped, illustrating the outsize influence that Silicon Valley increasingly has in the real world.

Businesses

San Francisco Officials Are Planning To Ban Corporate Cafeterias, Force Tech Workers To Eat Out At Local Restaurants (nytimes.com) 825

"According to The New York Times, San Francisco officials are planning to ban corporate cafeterias to force tech workers to eat out at local eateries," writes Slashdot reader The Original CDR. Here's an excerpt from the report: Two San Francisco supervisors introduced an ordinance last week that would forbid employee cafeterias in new corporate construction. It is not clear whether the measure will pass, but it is a direct attack on one of the modern tech industry's most entrenched traditions. The ordinance, which seeks to force tech workers out of their subsidized cafeterias and into neighborhood restaurants, is the latest attempt by San Francisco leaders to make the tech companies that are migrating north from Silicon Valley adapt to life in the city.

"These tech companies have decided to leave their suburban campuses because their employees want to be in the city, and yet the irony is, they come to the city and are creating isolated, walled-off campuses," said Aaron Peskin, a city supervisor who is co-sponsoring the bill with Ahsha Safai. "This is not against these folks, it's for them. It's to integrate them into the community." Mr. Peskin's ordinance is also aimed at getting more out of a tax deal given to tech companies that would agree to move into a troubled area called Mid-Market. In 2011, the companies were given tax breaks on payroll and stock options with the hope that they would bring jobs and investment to the neighborhood, just a short walk from San Francisco's City Hall. Within a few years, a number of companies like Twitter, Square and Uber moved into Mid-Market. But despite initial excitement over the opening of a number of restaurants and shops, the neighborhood has not yet flourished the way many had hoped.
Further reading: San Francisco Examiner, San Francisco Chronicle

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