More From Tim O'Reilly about the 'WTF?!' Economy (Video) On August 12 we ran two videos of Tim O'Reilly talking with Slashdot's Tim Lord about changes in how we work, what jobs we do, and who profits from advances in labor-saving technology. Tim (O'Reilly, that is) had written an article titled, The WTF Economy, which contained this paragraph:

"What do on-demand services, AI, and the $15 minimum wage movement have in common? They are telling us, loud and clear, that we’re in for massive changes in work, business, and the economy."

We're seeing a shift from cabs to Uber, but what about the big shift when human drivers get replaced by artificial intelligence? Ditto airplane pilots, burger flippers, and some physicians. WTF? Exactly. Once again we have a main video and a second one available only in Flash (sorry about that), along with a text transcript that covers both videos. Good thought-provoking material, even if you think you're so special that no machine could possibly replace you.

CNET reports that Uber's practice of surge pricing, which sometimes raises the ire of passengers, isn't universally acclaimed by the company's drivers, either. "[M]ost Uber riders," according the the linked article, "despise surge pricing," though it's not clear quite how that "most" is arrived at. From the piece: They've complained about running up bills totaling hundreds of dollars, and have criticized the company for using surge pricing during emergencies, like Hurricane Sandy and the Sydney hostage crisis. The San Francisco Better Business Bureau gave Uber the grade of an F because of complaints related to surge pricing. And New York lawmakers have even proposed legislation to put limits on how high fares can go. Now some drivers, like [San Francisco Uber driver Peter] Ashlock, are also having second thoughts on surge pricing." On the other hand, what system would you propose to better reward drivers for working at high-demand times?

schwit1 writes: According to crime statistics from the San Francisco Police Department there were only two drunken driving arrests last New Year's Eve in San Francisco, the lowest since 2009. This news comes on the heels of a new study revealing that the introduction of UberX reduces drunk driving deaths across California. Temple University's Brad Greenwood and Sunil Wattal published a paper that shows cheap taxi-like options make it easier for people to make the safer decision to call for a ride rather than driving home themselves.

This is a conversation Tim Lord had with Tim O'Reilly at OSCON. Tim O'Reilly wrote an article titled "The WTF Economy,", which started with these words: "WTF?! In San Francisco, Uber has 3x the revenue of the entire prior taxi and limousine industry." He talks about Uber and AirbnB and how, with real-time measurement of customer demand, "The algorithm is the new shift boss." And then there is this question: "What is the future when more and more work can be done by intelligent machines instead of people, or only done by people in partnership with those machines?"

My (late) father was an engineer. Politically, you could have called him a TechnoUtopian. He believed -- along with most of his engineer, ham radio, and science fiction writer and reader friends -- that as machines took over the humdrum tasks, humans would work less and create more. O'Reilly seems to have similar beliefs, even though (unlike my father) he's seen the beginnings of an economy with self-driving cars and trucks, factory machines that don't need humans to run them, and many other changes the 1950s and 1960s futurists didn't expect to see until we had flying cars and could buy tickets on Pan Am flights to the moon. Listening to these conversations, I remember my father's dreams, but O'Reilly isn't as optimistic as a full-blown TechnoUtopian. He takes a "Something's happening here; what it is ain't exactly clear" view of how work (and pay for work) will change in the near future. Please note that Tim O'Reilly has been called "The Oracle of Silicon Valley," so he's totally worth watching -- or reading, if that's your preferred method of taking in new information.

NOTE: Today we have a "main video," plus a "bonus video" that is viewable only with Flash. But we have a transcript that covers both of them. Enjoy!

The Stack reports that local police have raided Uber's Hong Kong office, "after several officers posed as Uber customers and arrested drivers on Tuesday morning in an attempt to put an end to illegal taxi services. Five drivers who had offered their services across the taxi-hailing app were arrested on suspicion of illegally carrying passengers and driving without third-party insurance. The men are being held for further investigation." Are local police quite this concerned in your city with car-sharing dispatch services?

An anonymous reader writes: Being unable to legally drive is hard for many women in Saudi Arabia, especially working women. With notoriously poor mass transit options, and the stigma attached to women riding the bus alone, Uber has changed the life of many Saudi women by giving them greater mobility and independence. While there are no official statistics on how many women use the service, anecdotal evidence suggest that 70% to 90% of Saudi riders are women. "A lot of them, I would say, are young women," says Saudi Arabia general manager Majed Abukhater. "We have some data to show that these women are starting to rely on Uber a lot more for their daily commutes; the proportion of trips that we see in Saudi during the weekday is actually very high relative to other locations. That's just kind of one indicator to tell us that women are really starting to rely on Uber for their daily commutes to work, or to school, or to university."

emakinen writes: The police in Helsinki, Finland has announced in a tweet that if you see someone driving Uber car, you should call 911 (or actually, 112 in Finland). In an article in the local newspaper they have explained that there is an ongoing investigation to find out whether or not Uber is legal in Finland and they want to interrogate Uber drivers. Normally you should have a permit to drive a taxi in Finland.

New submitter DaneTerry88 points out an article about the financial state of Uber, poster child for the sharing economy. Documents leaked to Gawker seem to indicate the company is still far from profitable, despite its popularity. "They show operating losses of more than $100m (£65m) in the second quarter of 2014, albeit coupled with steady growth in revenue." Uber did not deny the leak, but pointed out they are still building the business, which requires a lot of investment. The company has been valued as high as $50 billion, and only a few days ago received a $100 million investment from Microsoft.

New submitter keithlynpitts writes: Uber is looking to expand its services in India, and will invest $1 billion there in the next nine months. India is the second biggest market for Uber after the U.S. The company hopes their investment will help speed growth in the country, which is already at a staggering 40% every month. "We expect to hit over 1 million trips per day," said Amit Jain, president at Uber India.

farrellj writes: A class action suit has been filed by the Taxi and Limo drivers and owners in the Province of Ontario in Canada against Uber, demanding CAN$400 million in compensatory damages, $10 million in punitive damages. They claim Uber is violating the Ontario Highway Traffic Act that covers taxis and limos, and has caused them to lose money. They also seek an injunction against Uber operating in Ontario. "This protectionist suit is without merit," Uber said in a statement. "As we saw from a recent court ruling in Ontario, Uber is operating legally and is a business model distinct from traditional taxi services."

An anonymous reader writes: A Spanish judge has requested that the European Court of Justice determine whether or not Uber is a generic "digital service," as it claims, or a "mere transport activity." If the court rules that Uber is a transportation firm the company may have to follow the same licensing and safety rules as taxis and other hired vehicles. "Today's news means that the European Court of Justice will now determine if the national rules currently being applied to digital services like Uber are legal and appropriate under European law," said Mark MacGann, Uber's Head of Public Policy for EMEA, on a conference call with journalists.

An anonymous reader writes: Uber and Lyft have been dealing with a host of legal and regulatory issues, and the Massachusetts attorney general's office is adding one more: disability access. No formal action has been taken, but the office has contacted the companies to see how they handle equal access. Uber says it often speaks with advocates about accessibility, and less than a week ago they introduced uberASSIST, which connects riders with drivers who are specifically trained to assist those with disabilities. Still, the inquiry seems to have been spurred by questions from disabilities rights groups, not to mention ongoing lawsuits. "[T]he National Federation of the Blind of California accused Uber in a lawsuit last year of discrimination by refusing to transport guide dogs. A San Francisco federal judge has said the case can proceed. ... In Texas, Jennifer McPhail sued Lyft last year, accusing the company of not having a wheelchair accessible vehicle operating in Austin."

SonicSpike writes with an excerpt from Marketwatch that says at least one major candidate in the 2016 electoral fight has made the "sharing economy" epitomized by Uber and Airbnb a campaign issue. In a major campaign speech in New York City, the former secretary of state didn't mention the ride-sharing service by name. But it was pretty clear what sort of companies she was talking about when she got to how some Americans earn money. "Many Americans are making extra money renting out a spare room, designing websites, selling products they design themselves at home, or even driving their own car," she said at the New School. But that sort of work comes with its own problems, she said. "This 'on demand' or so-called 'gig economy' ... is raising hard questions about workplace protections and what a good job will look like in the future," Clinton added.

New submitter shanemccarthy writes with a story at Forbes that lays out a non-intuitive factor in the ongoing class-action suit over alleged labor law violations filed in the name of Uber drivers. Namely: how Uber drivers see themselves in relation to the company. While some drivers consider themselves, or would like to be considered, employees, and accrue the conventional benefits of employee status at a large company (and Uber, for all its crowd-sourcing, disintermediating origin story, is large enough to garner a valuation in the billions), a considerable number of the drivers do not want to give up their status as independent contractors. The rules of class action lawsuits, though, mean that if Uber's drivers are classed as employees, those who would like to remain independent won't have that option -- so the company is lining up examples of drivers who would seem by no one's definition to be employees, and who want to keep it that way. See also this earlier story about workplace classification for these drivers and others in non-traditional work arrangements.

An anonymous reader writes: Uber headlines a new group of companies building out the so-called "sharing economy," in which people can easily hop in and out of employment modes. Somebody can suddenly start hiring out his driving services to others, taking breaks and setting hours as he prefers, and then just as quickly stop participating forever. An article at NY Magazine says we need to define a new class of worker to fit Uber drivers and similar at-will employees. "According to American employment law, though, our driver must be one or the other, a 1099 contractor or a W2 employee. And the gulf between the two in terms of mandated government protections and benefits is as wide as the line between them is blurry. As such, thousands of on-demand-economy employees and scads of lawyers are at war in court to determine what camp our average driver should fall into. ... It might be time for a new standard that splits the difference between the two — a 'dependent contractor,' as some labor experts call it — that would be better for businesses, consumers, and all those workers themselves."

An anonymous reader writes: Waze, the online mapping company owned by Google, is testing a ride-sharing service in Israel called RideWith. The service will allow commuters to pay drivers for rides to and from work. This is a hard limit — drivers can give no more than two rides per day. If the restriction remains after the initial test, it could be a simple way to avoid pseudo-professional drivers, and all the taxi-related legal problems that go with them (see: Uber). "RideWith calculates a cost based on the anticipated fuel consumption and 'depreciation' based on mileage, and the driver is free to accept or decline the ride accordingly." One can't help but speculate about future involvement with Google's autonomous car project.

HughPickens.com writes: Edward-Isaac Dovere reports in Politico that the fastest-growing chapter of the Obama alumni association is in Silicon Valley. For the people who helped get Obama elected and worked for him once he did, there's something about San Francisco and its environs that just feels right: the emphasis on youth and trying things that might fail, chasing that feeling of working for the underdog, and even using that word "disrupting" to describe what they do. "A lot of people who moved out here were present at the creation of the Obama '08 campaign," says Tommy Vietor. "There's a piece of them that wants to replicate that." Vietor left the White House two years ago, and he and his business partner, former Obama speechwriter Jon Favreau, founded a communications strategy firm with a focus on speechwriting for tech and other start-ups. "If you're writing for a CEO out here, they're more likely to be your peer than your grandfather," says Vietor. "They're young, they're cool, they get it."

Other former Obama staffers who have come to Silicon Valley include former campaign manager and White House adviser David Plouffe at Uber, Kyle O'Connor at Nest, Semonti Stephens at Twitter; Mike Masserman, at Lyft; Brandon Lepow at Facebook; Nicole Isaac, at LinkedIn; Liz Jarvis-Shean at Civis; Jim Green and Vivek Kundra at Salesforce, Alex McPhillips at Google; Gillian Bergeron, at NextDoor; Natalie Foster at the Institute for the Future; Catherine Bracy at Code for America; Hallie Montoya Tansey at Target Labs. Nick Papas, John Baldo, Courtney O'Donnell and Clark Stevens at AirBnB, and Jessica Santillo at Uber.

There are so many former Obama staffers in the Bay Area that a recent visit by former White House senior adviser David Axelrod served as a reunion of sorts, with more than a dozen campaign and White House veterans gathering over lunch to discuss life after the administration. Obama himself rarely misses an opportunity to come to San Francisco. He says he loves the energy there, loves the people and according to Dovere, the city's ultra-liberal leanings mean he was greeted as a rock star even during the dark days before last year's midterms. Obama's even become friendly with Elon Musk. "There should be a welcome booth at the SFO airport," says Jon Carson, the former Organizing for Action executive director now at SolarCity.

UnknowingFool writes: Microsoft has announced that they will sell some Bing Maps technology to Uber and their advertising business to AOL. About 1,300 employees are expected to be offered positions in their new companies. CEO Nadella said previously that there would be "tough choices" to be made. Some outside analysts have said neither venture was very profitable for Microsoft and may have been unprofitable at times.

An anonymous reader writes: Two Uber executives were arrested by French authorities for running an illegal taxi company and concealing illegal documents. This is not the first time Uber has run into trouble in France. Recently, taxi drivers started a nation-wide protest, blocking access to Roissy airport and the nation's interior minister issued a ban on UberPop. A statement from an Uber spokesperson to TechCrunch reads: "Our CEO for France and General Manager for Western Europe were invited to a police hearing this afternoon; following this interview, they were taken into custody. We are always available to answer all the questions on our service, and available to the authorities to solve any problem that could come up. Talks are in progress. In the meantime, we keep working in order to make sure that both our customers and drivers are safe following last week’s turmoils."

schwit1 suggests Bloomberg's story on one aspect of Uber's corporate behavior that may leave a sour taste in the mouth of anyone who'd like to believe the Uber-vs.-the-Cartels narrative. The company hired David Plouffe, known for managing Barack Obama's rise to fame, and many others as well, to help them navigate inevitable and ongoing moves for regulation. The scale is impressive; according to the article: Over the past year, Uber built one of the largest and most successful lobbying forces in the country, with a presence in almost every statehouse. It has 250 lobbyists and 29 lobbying firms registered in capitols around the nation, at least a third more than Wal-Mart Stores. That doesn't count municipal lobbyists. In Portland, the 28th-largest city in the U.S., 10 people would ultimately register to lobby on Uber's behalf. And while the article focuses mostly on the example of Portland, the effort is ongoing and nationwide.