Uber is having a torrid time, and I can’t help but feel that this is an inflection point for the ride-hailing giant. It either has to set off on a new path towards fairness for its workers, or this point, right here, right now, will mark the beginning of its end.

Those who have followed Uber’s so-called “disruption” of the taxi market, will know the constant debate between drivers and the “app platform” over the fairness of its algorithm, and how it pays its workers, all too well.

It’s a David and Goliath fight, but David is still yet to find his projectile.

While much of that discourse focuses around what is essentially Uber’s taxi business, the company has expanded to, and now contracted from, new and exciting areas of mobility tech, which now represent nothing more than dead ends.

Last year, Uber retreated from two crucial areas of development, flying transport and autonomous driverless taxis. Uber has spoken of these two futures as being crucial in its never ending quest for consistent profitability. Flying taxis should lower operating costs, and move people around with greater speed, making them a more efficient way to travel.

Autonomous taxis were explored for many of the same reasons. By removing the human driver from an Uber car, the company removes its biggest cost. With a fleet of millions of driverless self-driving taxis Uber’s around the globe, former CEO Travis Kalanick boasted in 2016 that it would change everything.

The reality five years later is quite different.

Time to sell
Last year, Uber sold its flying taxi arm — for a profit — to Joby Aviation, a Californian flying car startup. The companies have struck a sort of partnership deal, integrating each others’ services into their apps. If flying taxis do become a thing, Uber will still be able to offer them as a service.

The ride-hailing company employed a similar strategy to its self-driving taxi division, Advanced Technologies Group (ATG). After pumping billions into developing self-driving tech, Uber sold ATG to Aurora, an autonomous vehicle startup headed by a former Waymo engineer.

On the surface, the sale appeared to remove a costly arm of Uber‘s business in efforts to expedite profitability. However, Uber is also investing $400 million into Aurora and taking a 26% stake. If self-driving taxis do become a reality, Uber will have access to the tech it needs to realize its ever elusive driverless taxi dream.

By selling these two divisions, Uber is no longer hemorrhaging cash on endeavors which are wild bets of science fiction, and have been called a “waste of money” by some prominent investors. The ride-hailing company is now a leaner version of its bloated former self, with greater focus on its core business there is hope that it’ll be able to remedy its two ever persistent challenges: its relationship with its drivers and profit.

Business model takes a hit
However, over the past few months, Uber has been coming up against hurdle after hurdle, and every single one threatens the very foundation its business is built on.

On Monday this week, Brussels’ local government banned drivers from picking up riders using the app, effectively halting operations for the business in Belgium’s capital. This ban was implemented because Uber has found a workaround, after another one of its services in the city, UberPop, got banned.

That situation is minor in comparison to the UK Supreme Court’s ruling from last month. After a four-year long legal case, the Supreme Court ruled that Uber’s drivers are workers, not independent contractors. This puts them far closer to being official employees than ever before, and affords them basic rights and securities that they should have had all along.

This ruling is the exact opposite of what Uber experienced on the other side of the pond in California. Last year, the Golden State’s voting public sided with the ride-hailing company, giving the go-ahead for Prop 22, its last ditch attempt to keep its business model alive and avoid paying drivers benefits.

Despite providing some benefits for drivers, Prop 22 allows Uber to continue largely as it always has. Uber will continue to have ultimate control over its app, how it delegates rides, and how much it charges customers. As it happens, these factors were what led UK judges to decide drivers are workers, not contractors. In the UK’s ruling drivers were found to be in a “position of subordination and dependency to Uber.”

Even though Prop 22 passed, it seems that drivers are now suffering more than before. In a recent article from the Guardian, drivers said that pay has fallen and working conditions remain poor since the vote.

Time for a shakedown
It seems Uber and its drivers live in two different realities, which are starting to collide. Last year, Uber surveyed its drivers and found they are generally in support of the ride-hailing firm’s agenda. Third-party surveys have also shown that drivers would prefer to remain independent contractors rather than becoming workers with benefits.

Academics have been critical of Uber’s approach to these surveys, suggesting that the company has conflated the ability to offer flexible work with employment status. But it’s done little to derail the Uber train.

Following the UK Supreme Court’s ruling, the ride-hailing firm sent out another survey to drivers via its app. It asked drivers about flexible work and benefits, but failed to mention holiday pay or the national minimum wage. Responses to questions were also limited to just a few choices, according to the Guardian.

Uber is now coming under fire from drivers’ unions for intentionally wording survey questions to get the answers it needs to soften legal blows.

Even though the Supreme Court’s ruling is final, it seems Uber is doing all it can to launch another attack on the UK’s legal system. Rather than playing by the rules, it’s intent on changing the rules to fit its business model, no matter what the cost or how reprehensible it might be. Perhaps this trait stems from the company’s hellbent need to “disrupt” markets to feel like it’s doing anything. News flash, Uber: you can offer a cool business within the confines of the law.

A new gig economy
Why is Uber always intent on fighting back every time it comes up against legal opposition? The answer is simple. If it doesn’t it will effectively sign its own death warrant.

The company has retreated from less sure business opportunities, like flying and driverless taxis, to focus on its core mission. But that isn’t going to come easy, so it’s perhaps a good thing it’s not carrying unnecessary baggage.

The UK’s ruling is set to define not just Uber’s future business model, but the entire workings of the gig economy in Britain. It has set a precedent that Europe seems keen to follow too.

Having to pay drivers benefits and minimum wages will dramatically increase its operating costs. It’s hard to put a definitive figure on that, but a San Francisco Chronicle article said the company’s labor costs could increase by 30% if drivers had to be recognized as employees.

As a business that’s yet to turn a consistent profit, there are only two parts of Uber’s business that can absorb an increase in costs: drivers or riders. If costs for riders increase, conventional taxis all of a sudden become more appealing. As for drivers, with reports suggesting conditions aren’t improving, it seems they are at their limit already.

Whatever happens next for Uber, big change is surely afoot.

Reprinted From:
https://thenextweb.com/shift/2021/03/02/uber-is-this-the-beginning-of-the-end-for-the-ride-hailing-goliath/

The Lyft and Uber ridesharing companies announced new features that may aid in getting people to vaccination sites amid the pandemic.

The “Rides for Others” and “Lyft Family” features were launched by Lyft, Friday, with the intention of helping users more easily request rides for others, particularly older adults who may otherwise struggle with the app.

“Right now, millions of older Americans are facing transportation issues in trying to get to their vaccination appointments. Equipping caregivers with the tools they need to ensure their loved ones can access essential medical care is critical to beating this virus,” Megan Callahan, VP of Lyft Healthcare said in a statement. “We know that access to reliable transportation can have a direct impact on health outcomes, and we’re proud of the products and partnerships we’re building to ensure equitable access to vaccines for the people who need them most.”

The new features allow users to add others to their account, order a ride for others and track the driver’s trip.

Uber sidesharing launched its own vaccine-focused initiative this week, teaming with Walgreens to give users free rides to their vaccination appointments at the pharmacy.

Walgreens pointed to the CDC’s finding that transportation has been a “barrier” for Americans trying to get the vaccine and their partnership with Uber aids in that regard.

“By combining Walgreens deep experience in community care with Uber’s transportation technology and logistics expertise, we will take bold action to address vaccine access and hesitancy among those hit hardest by the pandemic,” Walgreens president John Standley said in a statement.

The city of Los Angeles used up its supply of vaccines on Thursday and was forced to shut down its city-run centers for the weekend, although several L.A. County-run vaccination sites are still offering second doses to healthcare workers and those over 64-years old.

On Thursday, L.A. County reported 3,497 new single-day cases of COVID-19 and 137 single-day deaths.

Reprinted From:

How Lyft And Uber Are Helping People Get To Vaccination Sites

Keeping kids entertained over half term is tough, especially during lockdown when they’re stuck inside. To help. Uber Eats and Hasbro will be delivering free board games and toys to hundreds of doors across the UK over half term. Parents can choose from four board games and two Play-Doh sets, which will be delivered at the door contact-free within 30 minutes after the order is completed. Each set is worth £6, but using the code THEHASBROTOYSTORE will reduce the cost to zero. You will still need to pay delivery and any service charges, which will depend on where you live. Sadly, the deal is only available for those in London and Manchester. Each user can only order from the store once so make sure you choose wisely. The toys and games were chosen because they encourage family time and imaginative play and offer something for children of all ages. With each order, customers will also receive an activity sheet to help their children spend time away from their screens. The shop will be available on the app from Wednesday, February 17 to Saturday, February 20 but will be limited to 200 people so best to get in early. Toussaint Wattinne, General Manager of Uber Eats, UK and Ireland said: ‘Being a parent is tougher than ever at the moment, so we wanted to do our bit to help bring families together and keep the children entertained while opportunities for days out are more limited. ‘Uber Eats delivers items beyond food to help make people’s day-to-day lives that little bit easier.’

Reprinted From:

Uber Eats and Hasbro will deliver free toys and games to your door this half term

There was a lot of excitement leading up to the DoorDash (NYSE:DASH) IPO in December. But all that excitement delivered an unappetizing share price. The volatile DoorDash stock trades around $210 as of this writing, giving it a valuation of $67 billion.

The company has been growing rapidly as more consumers rely on the convenience of food delivery amid pandemic-induced restaurant closures. It’s also managed to gain market share from rivals Uber (NYSE:UBER) and GrubHub. It seems likely a lot of customers will make food delivery a regular part of their takeout routine even in a post-pandemic world.

But with shares trading at a premium to Uber, investors interested in capitalizing on the growth in food delivery may be better suited buying the more diversified competitor. A look at valuation
DoorDash has grown sales quickly in 2020 as consumers have come to rely on food delivery during the pandemic. Revenue more than tripled in the first nine months of 2020, and analysts believe sales maintained that growth rate in the fourth quarter. For the full year, Wall Street expects the company to report $2.85 billion in revenue. That gives the stock a price-to-sales ratio of around 23.6.

Uber, meanwhile, has seen overall revenue decline as its core mobility business has suffered. Uber Eats helped offset the decline, but it’s not growing at quite the same pace as DoorDash. Delivery revenue doubled in the second quarter, increased 125% in the third quarter, and accelerated even further in the fourth quarter to 224% with the addition of Postmates in December. Uber’s total business brought in $11.1 billion in 2020, giving it a trailing price-to-sales ratio of about 10.1, less than half that of DoorDash.

Investors may argue DoorDash deserves a premium valuation due to its smaller size and faster growth, but Uber should return to strong growth this year as its mobility business benefits from renewed activity in the second half of 2021. Analysts project full-year 2021 revenue of $16.2 billion, up 45%. Meanwhile, DoorDash could see a negative impact from reopening. As a result, the market expects a severe slowdown this year with sales up just 30%.

On a forward-looking basis, the disparity in the price-to-sales ratio difference between DoorDash and Uber is even greater: 18.2 times versus 6.9 times.

To be sure, DoorDash deserves some premium over Uber. It has a larger market share, which is extremely important in the delivery business due to the value of the network effect. It’s also a smaller company overall, which gives it more room for growth. But at today’s price, all of that growth potential is already baked in.

Uber’s diversification is an advantage
While DoorDash’s concentration on restaurant delivery has enabled it to grow quickly in 2020, it may be a disadvantage long term.

As people begin to travel or go out to bars again (thus needing a safe ride home), Uber is poised to increase its install base. During its fourth-quarter earnings call, CEO Dara Khosrowshahi said, “I think that it’s increasingly become apparent that Uber, as a transportation platform, is recovering faster than other transportation offerings in most of the markets in which we operate.” The user base should come back stronger than it was pre-pandemic.

Uber moved to integrate Uber Eats with its main app in 2019, which proved valuable last year but could be even more valuable in the future. It’s already seeing traction converting riders to Eats customers. The redesigned app brought in 10% first-time “eaters” as the company calls its Uber Eats customers. With its toes in grocery, alcohol, and prescription delivery as well, Uber has an opportunity to convert customers coming to its app for one service to more frequent users generating additional revenue.

The same thing works on the driver side. Uber is able to attract drivers more easily than DoorDash or any other competitor due to the number of opportunities it can offer them on its platform. From rides to Eats to delivery, drivers will get more work from Uber than its competitors.

This network effect is seen in Uber’s expanding take rate for delivery. For the fourth quarter, Uber had a take rate of 13.5% for the delivery business. That’s up about four percentage points from last year. Uber focused the business this year in markets where it’s either first or second and exited markets where it didn’t have significant market share or the ability to leverage its network effect. By comparison, DoorDash’s take rate sits around a similar level with older customer cohorts earning a slightly higher take rate. That’s despite the fact that DoorDash has a significant market share lead over Uber in the U.S.

Uber ought to be able to continue expanding its take rate as it wins back ride-share customers. And with faster overall growth in gross bookings across its businesses than DoorDash, it should see faster improvement in its operating income as well. With shares trading at a far lower valuation, Uber is the better investment right now over the high-flying IPO.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Should you invest $1,000 in Uber Technologies, Inc. right now?
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Reprinted From:
https://www.fool.com/investing/2021/02/17/forget-doordash-buy-uber-instead/?source=iedfolrf0000001

A tool that helped Uber drivers determine whether their pay was calculated fairly has been removed from the Chrome Web Store. UberCheats creator Armin Samii said the corporation claimed his extension violated the Uber trademark.
The ride-hailing/food delivery service has landed in hot water before for allegedly fleecing workers. In 2017, Uber admitted to underpaying New York City drivers tens of millions of dollars over two and a half years, promising to reimburse affected employees about $900 each. UberCheats was inspired by Samii’s own experience as an UberEats rider—when a delivery took him “up one of the steepest hills in Pittsburgh, about four miles total,” but only paid for one mile. “I was so frustrated,” he told Motherboard. “Not for the few dollars I missed out on, but because I knew Uber was getting away with sneakily underpaying thousands of drivers and delivery people everywhere.”

Samii launched the Chrome extension in August 2020, noting that “Uber could block this at any time” and urging UberEats delivery people to “please download it before it’s blocked … and let me know if Uber cheated you.”

“Sometimes Uber calculates the distance from point A to point B incorrectly,” Samii said. “My guess is that they use the ‘straight line’ distance rather than the actual distance traveled. In my area, that has led to a ‘six-minute trip’ taking 50 minutes, since they thought I could…fly, I guess?”

UberCheats lasted an impressive six months before Uber complained and Google yielded, informing Samii that his app “allegedly infringes upon the trademarks of others,” Google wrote in an email, shared with Motherboard. “In case you think I stretch the truth,” Samii tweeted on Tuesday, “verbatim, UberCheats is ‘likely to lead consumers to mistakenly believe that its products or services are associated with Uber or authorized by Uber.”

Neither Google nor Uber immediately responded to PCMag’s request for comment.

Reprinted From:
https://www.pcmag.com/news/uber-gets-ubercheats-pulled-from-google

Las Vegas and Southern Nevada has not only blown away records on its luxury market for 2020 that are up 38 percent for $1 million and above, but the uber-luxury market of $4 million-plus has hit heights never seen before in the valley and doubled its performance from 2019.

And it’s all happening during a COVID-19 pandemic.

The December numbers from the Multiple Listing Service show there were 129 sales of homes and condos of $1 million and higher submitted to the MLS from the Las Vegas Valley, Boulder City, Pahrump and Mesquite. Most luxury properties listed on the MLS are existing homes, condos and town homes, with a limited number of new homes.

That shatters the record of 98 in November. Many buyers were trying to close by the end of 2020 for tax purposes, and that created a frenzy in recent weeks.

For 2020, there were 824 sales of $1 million or more on the MLS. The previous record was 596 set in 2019, according to Forrest Barbee, corporate broker with Berkshire Hathaway HomeServices Arizona, who tracks the luxury market and provided the stats for the year.

That’s not all for records set. There were 13 sales of homes at $5 million and higher in December. There were 14 during all of 2019, and the December numbers bring the 2020 total to 32 for the year, Barbee said.

That’s quite an ending after luxury sales dipped to 35 in April and 36 in May before a strong rebound over the summer. The COVID-19 pandemic appears to have shaken people to their core in that they want to change their living conditions and create normalcy, and moving and upgrading homes does that, Barbee said.

“I don’t think last spring that anybody was looking at this type of a rebound when the pandemic is worse than ever,” Barbee said.

In breaking down luxury sales in the Las Vegas Valley only and excluding other parts of Southern Nevada, Realtor Rob Jensen of the Rob Jensen Co. said there were 597 sales of $1 million to $1.99 million, up from 340 in 2019. That’s a gain of 32.7 percent.

In the $2 million to $2.99 million category, there were 114 sales compared with 71 in 2019, Jensen said. That is up 60.5 percent from 2019. There were 49 sales compared with 42 for $3 million to $3.99 million. That is 16.6 percent higher.

In the category of $4 million and above, there were 53 sales, up from 26 in 2019, a gain of 103 percent, he said.

“That points to the high-income and high-net worth people having the flexibility to move to where they want whether they are escaping California for not just taxes but to get out of a state that’s closed,” Jensen said. “The ultra-wealthy are taking advantage that Las Vegas has to offer.”

Jensen said that of all of the categories, the one of $4 million and above has increased the most. He said that represents business owners and executives and those in the tech industry who are able to work from afar and people from California and those escaping the East Coast and high-rise living.

“They either have the financial wherewithal to work from anywhere or don’t have to work in the first place,” Jensen said. “It’s not like they’re coming here to work in a casino or got a new job in Las Vegas. I’m seeing these people being captains of industry and ultra-high-net-worth people that can live anywhere.”

Realtors aren’t expecting demand for luxury properties to slow down in 2021 but are concerned if there is enough supply to meet it.

The National Association of Realtors projects Las Vegas sales will increase by 12 percent in 2021, and Barbee added, if that’s the case, it will be driven by the luxury market.

“I think we’re looking at more of the same in 2021,” Barbee said. “There doesn’t seem to be any slowdown. Demand is so strong out there. Half of the luxury sales in December were with cash, but it’s also easier to get jumbo loans. We were having a big problem with that a couple of years ago.”

The momentum right now is so strong in the luxury market that even if things were to slow down, it would take even six months to feel the effects of it, according to Diane Varney, global luxury-certified specialist with Coldwell Banker Premier Realty.

“We have record-breaking sales, historically low inventory, low interest rates and an influx of people from states like California because we have taxes here,” Varney said. “I see the demand holding through the whole of 2021. We’re on the map in Las Vegas in terms of luxury.”

Varney said the buyers prefer the guard-gated golf course communities such as The Ridges, MacDonald Highlands, Southern Highlands and TPC Summerlin. And it’s not only out-of-state residents but Las Vegas residents are moving again as well and seeking either new or existing luxury homes. A lot of people with high incomes work from home, and many can’t pass up buying luxury homes with interest rates in the 2-plus percent range because their money goes further, she said.

“Their needs have changed,” Varney said. “They may need an extra room for a next-gen person, a college student or elderly relative. They may need to downsize because they want to go to a two-story luxury home to one-story luxury home to simplify their life. They may need something grander, so in that case they’re moving up. The work-from-home space is really important, and builders have done an excellent job of meeting those needs in making sure that attractive home office is there, that next-gen site and more closet and garage space. Their kids are not in school and need the room to educate them in the house. They have the means and have to be living in a home that functions for them properly. That’s changed with COVID.”

Barbee said buyers want functionality more than ever. He said he is one of those people who upgraded during the pandemic to get more space — two offices — and moved from a Summerlin town home to a single-family home in Lake Las Vegas to have more open space around him and his wife.

Shannon Smith, a broker/salesman with Realty One Group, said based on the momentum of 2020 and vaccine and economic improvement on the horizon, 2021 should be a good year.

“I’ve been in the business for 12 years, and 2020 has been my best year ever despite the pandemic,” Smith said. “The California exodus is a real thing. Maybe 50 percent of my clients are coming from California who are looking for properties $1 million and above.”

A lot of Californians tend to want to live on the south end of the valley to make it easier to get on the Interstate 15, Smith said. That includes Southern Highlands and Seven Hills and Henderson, he added.

“I have clients (who came) into town on the weekend of New Year’s (Eve) from the Bay Area who are 20-year Raider season ticket holders,” Smith said. “They are using that as an excuse to buy a property between $1 million and $2 million and use it as a second home.”

Gene Northup, global real estate adviser with Synergy Sotheby’s International Realty, said he expects to see continued wealth moving to Las Vegas from high-density areas such as Chicago, Seattle and cities in California and Colorado.

Reprinted From:

Las Vegas uber luxury market sets record in 2020 despite pandemic

In yet another decision concerning gig economy businesses, the New York Supreme Court, Appellate Division, Third Judicial Department upheld a decision of the Unemployment Insurance Appeal Board (the “Board”), which held that Uber exercised sufficient control over its drivers to qualify as their employer. Accordingly, it found Uber to be liable for unemployment insurance contributions with respect to the drivers at issue.

Brief Procedural Background
Claimant and similarly situated drivers (“Claimants”) sought unemployment insurance benefits when they ceased driving for Uber. The New York Department of Labor (“DOL”) issued initial determinations, finding that the Claimants were employees of Uber and that Uber was liable for additional unemployment insurance contributions based on monies paid to Claimants. Uber objected and, following a hearing, an Administrative Law Judge upheld the initial determinations. The Board affirmed and Uber appealed. On December 17, 2020, the Third Department affirmed the underlying Board decision, finding that sufficient evidence in the record supported the Board’s decision.

The Third Department’s Holding
The Appellate Division analyzed and relied upon several facts in the record to conclude that substantial evidence existed to support the Board’s finding that Uber exercised sufficient control over Claimants to establish an employment relationship. Matter of Lowry, No. 530395, 2020 WL 7390888 (App. Div. 3d Dept. Dec. 17, 2020). While no one factor is determinative in analyzing whether an employment relationship exists within the meaning of unemployment insurance law, the relevant inquiry is generally “whether the purported employer exercised control over the results produced or the means used to achieve those results.” Id. (quoting Matter of Empire State Towing & Recovery Assn., Inc. [Commissioner of Labor], 15 N.Y. 3d 433, 437 [2010] [internal quotation marks, brackets and citations omitted]).

In this case, the Court held that facts existed to establish that “Uber controls the drivers’ access to their customers, calculates and collects the fares and sets the drivers’ rate of compensation […] provides a navigation system, tracks the drivers’ location on the app throughout the trip […] controls the vehicles [and] precludes certain driver behavior.” Id.

What the Future Holds for Gig Economy Drivers
While the Appellate Division, Third Department’s decision is limited to upstate New York (distinct from New York City), it may foreshadow future decisions involving gig economy workers, particularly with respect to rideshare companies. For example, on the same day the Court decided Matter of Lowry, the Third Department held that US Pack Logistics, LLC, a delivery service company, exercised sufficient control over its employee drivers based on facts demonstrating that they were assigned specific workdays and hours by US Pack’s operations manager, were issued an identification badge bearing US Pack’s name, and were required to sit in the client’s parking lot during set hours. Matter of Thomas, No. 530311, 2020 WL 7390959 (App. Div. 3d Dept. Dec. 17, 2020). In addition, Islam, et al v. Cuomo, et al, No. 1:20-cv-02328, 2020 WL 4336393 (S.D.N.Y. July 28, 2020), a case pending in the United States District Court for the Eastern District of New York, involves several New York drivers for various app-based ridesharing companies who filed for unemployment insurance benefits in March 2020. Although the New York State DOL denied unemployment insurance benefits to many of the drivers due to lack of wage and earnings data from the various companies, the federal court granted the drivers’ motion for a preliminary injunction, ordering New York to pay unemployment insurance benefits to Uber drivers and to resolve any outstanding claims within 45 days.

Courts and state labor agencies across the United States have been struggling with similar worker classification issues for gig economy workers. For example, California sued Uber in May, seeking an injunction forcing the companies to reclassify their drivers as employees rather than independent contractors under AB-5. Although the courts granted California’s requested injunction, California voters overturned it just a few weeks later when they passed Proposition 22, allowing ridesharing apps to maintain their drivers as independent contractors. People of the State of California v. Uber Technologies, Inc., No. CGC-20-584402 (Cal Super. Ct. Sf. Cnty. Aug. 10, 2015). On November 5, 2020, the United States Court of Appeals for the Third Circuit vacated the trial court’s summary judgment decision ruling in favor of UberBLACK on the question of whether drivers are employees or independent contractors within the meaning of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201– 219, and similar Pennsylvania state laws. Razak v. Uber Technologies, Inc., 951 F.3d 137 (3d. Cir. 2020). That case remains pending.

While the Matter of Lowry decision represents a small victory for rideshare drivers in upstate New York, the classification battle is not ending any time soon. In light of this decision and the passage of Proposition 22 in California, we expect classification issues to remain at the forefront of employment and labor law concerns, particularly in the gig economy.

Employers in New York should continue to take steps to ensure proper classification of their workers and remember that the ultimate inquiry in determining whether a worker is an employee or an independent contractor comes down to who has the right to control or direct the results of the work, rather than how the parties define the relationship. We will continue to monitor these decisions and provide updates as more information becomes available. Should you have any questions concerning these issues, employers should also consult counsel for assistance.

Reprinted From:
https://www.natlawreview.com/article/battle-over-rideshare-worker-classification-continues-new-york-supreme-court-holds

Among the many challenges the enterprise tackled last year during the pandemic-imposed upheaval, the most odious (business-wise) was the rapid shift to remote work. Specifically, human resources departments had talent to contend with, as they dealt with recruiting, interviewing, hiring, firing, on-boarding, consulting, and much more. The tech-oriented HR firm Talview conducted a recent survey on remote hiring trends for 2021 amid the COVID-19 crisis and the workforce shift to telecommuting.

The once new-normal, and now just normal has changed the way employees and companies not only initially find each other, but the nuances and practices regarding ongoing relationships between HR and staff. Unique to this particular report: Respondents are from companies many people aspire to join. TechRepublic readers may be interested to learn, the largest group queried by far–46 companies and close to 32% of all industries polled–were from tech departments.

Among participants: Amazon, Disney, Uber, Kellogg’s, Zoom, MD Anderson Cancer Network, Red Bull, iCIMS, Garmin, Red Bull Montreal, appFolio, HCL Princeton University, Task-Us, AdventHealth, Stanford Health Care, Parker, Lufthansa Technik, Vodafone, Charter, SRM University, Huawei, Indeed, Home Advisor, and more.

Respondents were given the opportunity to comment on how their hiring processes have changed since the pandemic. Some said they went from several in-person interviews to a single remote interview. While there are challenges in countries where “wet signatures” are “legally required,” companies said they still went 100% remote. Other companies indicated that virtual interviews and new employee orientations were becoming the norm, and that they were now looking more closely at other positions that were traditionally “in office” that might become remote.

Some respondents said they’ve done away with background checks and drug screenings, as well as cut travel, looking for qualified candidates in a wider arena to streamline the process; they’re using e-signatures on contract agreements, conducting online assessments, and moved to keep communication continuous within the company.

They’re also launching new campaigns to facilitate virtual engagement, building their social media profiles (one respondent called it “giving a picture into our company and culture.” They want to “improve their brand, attraction and reputation.”

The combination of technology and human resources was demonstrated to be both fitting and successful: 80% of respondents said the interview and hiring process at their companies was fully remote. A further 15% said their processes were not fully remote, and an additional 5.5% (eight companies) said they were not currently hiring.

Additionally, because the talent pool for remote work is much wider, as commutes/locations aren’t likely factored into consideration, 79% of those polled agreed remote hiring can help foster diversity in their organizations. Respondents were asked their opinions regarding expanding beyond commuting distance, and if it would increase diversity, and nearly 79% responded “yes.”

About three-quarters of participants stated they were satisfied with how well a remote staff worked, and were additionally satisfied with remote work technologies. One participant who has worked remotely for 20 years said they relied first on hiring talent first and that tech is supportive.

IT positions topped the list of roles which were vanguards in remote work prevalence (followed by management, sales and marketing, and operations & finance). Technical/engineering roles represented 60% of remote hires, followed by management (54.5%), sales and marketing (51%), operations and finance (49%), HR (39%), and customer success (43%).

The survey revealed few negatives and the top two obstacles to continuing to hire remote employees were the 38% of respondents who cited “an organization’s mentality that in-person workers are more effective,” and the 36% of hiring managers who wanted local candidates.

Additional reasons companies gave for preferring to stay within a region include because they only hire where they have customers (17.9%), jobs require in-person interaction with customers (27.6%), and compensation and legal factors (31%).

Reprinted From:
https://www.techrepublic.com/article/amazon-disney-and-uber-reveal-remote-interviewing-and-hiring-processes/

A new insight brief calls for cross-sector collaboration between transportation network companies, policymakers, utilities and key cities’ stakeholders to align on ridehailing electrification and accelerate toward ambitious transportation-sector climate goals.

Rocky Mountain Institute (RMI), in collaboration with General Motors, has released an insight brief that reveals why the electrification of transportation network companies (TNCs), such as Uber and Lyft, is crucial to accelerating the transition to electric vehicles and addressing some of the key barriers to electrification with actionable recommendations for key stakeholders.

Road-based transportation, overwhelmingly powered by internal combustion engine (ICE) vehicles, emits 6 Gt of CO2 globally each year. Transportation is the number one source of greenhouse gas emissions in the United States, and the fastest-growing source of emissions in India and China. Left unaddressed, these emissions will continue to grow through 2050, as global demand for passenger transport is expected to double, and demand for freight transportation is expected to triple.

RMI’s Racing to Accelerate Electric Vehicle Adoption: Decarbonizing Transportation with Ridehailing insight brief leverages 101 million miles of real-world data from General Motors to show that electric ridehailing vehicles can not only effectively replace ICE ridehailing vehicles, but will also create catalytic opportunities for the electrification of other transportation sectors by overcoming barriers facing consumers and fleets.

“General Motors is pleased to collaborate with RMI to share our extensive experience deploying EVs in shared-use-applications,” said Alex Keros, Lead Architect for EV Charging at GM. “Access to EVs and associated charging infrastructure in all communities and business sectors is essential for unlocking the societal benefits of an all-electric, zero-emission future.”

“Electrifying TNCs has significant, direct environmental benefits and an equally critical benefit for the larger market that comes from the public charging infrastructure and consumer exposure to EVs,” said EJ Klock-McCook, principal at RMI.

The insight brief identifies and addresses three key barriers to electrifying ridehailing vehicles:

• Technological Capability: EVs must be technologically capable of replacing ICE vehicles in TNC applications. Our research shows that EV technology has advanced to the point where this is generally viable.
• Financial Competitiveness: Steps must be taken to improve the financial competitiveness of EVs for ridehailing such as lowering the price and increasing access to charging, enabling EV leasing and rental models, and leveraging the used EV market.
• Charging Infrastructure: Robust infrastructure is essential and can be made viable through coordinated stakeholder action and further focused research.

Reprinted From:

https://cleantechnica.com/2021/01/07/the-race-to-tackling-transportation-emissions-by-electrifying-ridehailing-fleets/

Uber never wanted to be just a rideshare company. To hear the company tell it, revolutionizing the taxi market was only the beginning. Travis Kalanick always thought the future had to look like cities full of self-driving Ubers. He said in 2016 that, “If we weren’t part of the autonomy thing? Then the future passes us by, basically, in a very expeditious and efficient way.”

• The more-than-a-taxi feeling didn’t go away, even under new leadership. “What began as a ‘tap a button and get a ride,'” Dara Khosrowshahi wrote in the company’s S-1, “has become something much more profound: ridesharing and carpooling; meal delivery and freight; electric bikes and scooters; and self-driving cars and urban aviation.”

But Uber’s ambitions are now shrinking as it goes from “ultra-ambitious startup” to “company that actually needs to make money.”

• Uber handed off its Elevate flying-car project to Joby Aviation yesterday, a day after offloading its Advanced Technology Group, which was trying to crack self-driving cars, to Aurora.
• It sold its Jump bike-and-scooter arm earlier this year, and sold a chunk of Uber Freight in October as well.

So what is Uber now? Well, in 2020 it’s been mostly a food delivery company, with delivery revenue up 125% as of the most recent quarter. (Mobility revenue was down 53%, because everyone was staying home.) It completed its $2.65 billion Postmates acquisition last week, too, pushing even further into that space.

• It’s investing in the companies taking over its ambitious projects, too, buying into companies like Lime.
• And it’s also increasingly a logistics company, putting more services inside the Uber app rather than trying to build them from scratch. Amazon of transportation, remember?
• “What we want to make sure is as that technology is developed, it’s developed for Uber network and is available for the Uber network at scale,” Khosrowshahi told CNBC.

Truth is, moonshots are an exclusive affair. When air taxis and autonomous cars will become a mainstream reality is still hard to know, but it won’t be next quarter, or the one after that, and the list of companies that can afford to keep throwing billions of dollars at these far-out transportation projects continues to shrink. It’s increasingly just two names: Amazon and Alphabet.

But Khosrowshahi is still claiming to be ambitious, at least in front of his employees:

• “I know there are questions about whether Uber has any ‘big, bold’ bets left,” he wrote to staff, per The New York Times. “I understand that question, but I think it misses the big, bold bets right in front of us: to become the undisputed global leaders in both Mobility and Delivery.”

Big debuts and bigger debuts

The good news for Uber: There’s a heck of a lot of money in delivery. DoorDash is reportedly pricing its IPO at $102 a share, which is more than a 36% increase from the company’s initial target. That means DoorDash is likely to go public at about a $32 billion valuation, which is roughly double its last private figure. Not bad!

• DoorDash is trading on the same thing Uber does: ubiquity. It controls about half the U.S. food delivery market, and both the company and its investors are betting that even when we’re allowed outside again, we’ll still be using DoorDash.
• There are certainly reasons to be bullish on DoorDash, but it really seems like investors are willing to bet on literally any tech company going public right now. Airbnb has raised its share target ahead of its IPO tomorrow, and Wish is also planning to list well above its last private valuation.

Why the optimism? A lot of strong recent performances. Snowflake’s a good example: Its stock has more than tripled since the company went public in September. DataDog’s has almost tripled. Even most of the relative “failures” have been successes, with Asana up over its IPO price and Palantir rising despite a lot of people’s early worries.

• Tech-IPO lows aren’t very low, and the highs are really, really high. As long as that’s the case, it’s going to be a lovely world in which to take your company public. (Unless you’re WeWork. There’s always WeWork.)

Reprinted From:

https://www.protocol.com/newsletters/sourcecode/ubers-shrinking-ambitions?rebelltitem=4#rebelltitem4