 less of a
> percentage of earnings per ride to their drivers to compensate for the
> change of cost?

Uber and Lyft would need to pay hourly wages, along with all of the associated
taxes due.

> Would Uber and Lyft make more if they had their drivers on a similar model
> to a pizza delivery driver ($4.50/h + tips)?

Uber and Lyft's entire business model is built on the independent contractor
model. I don't believe they could reach profitability in any scenario with
human drivers if they have to pay them as stipulated by IRS regulations.

~~~
SilasX
>Uber and Lyft would need to pay hourly wages, along with all of the
associated taxes due.

Not true. You can be an employee with a non-hourly pay structure. Just one of
many misconceptions batted around about the implications of driver
reclassification, along with (these aren't all false per se, just not-
necessarily-true):

\- Drivers would have to get the Uber-paid lavish health care plan that
developers there get.

\- Driver cash payments would remain the same and not be reduced.

\- Drivers would get fixed work schedules.

\- Drivers would value the compensation package that includes employee
benefits but has lower cash pay, over the compensation they get now.

\- Uber would have to provide the vehicles.

\- The economic incidence of FICA taxes would shift to Uber (not how economic
incidence works[1]).

Again, the employee/contractor distinction depends on a number of factors; you
can be classified as an employee without meeting all of criteria.

[1] Good explanation:
[https://www.reddit.com/r/badeconomics/comments/422av5/some_g...](https://www.reddit.com/r/badeconomics/comments/422av5/some_good_old_fashioned_101level_errors_on/cz73e8g)

~~~
toomuchtodo
I agree those are all things _that should happen_. But can Uber be profitable
in that configuration? I would argue not, but maybe they pull it off.

~~~
SilasX
My point was that the reclassification as employees does not imply that any of
those
less of a 
 > percentage of earnings per ride to their drivers to pay for the 
 > variety of cost? 

 Uber and Lyft would need to yield hourly wage, along with all of the associated 
 taxes due. 

 > Would Uber and Lyft induce more if they had their drivers on a similar model 
 > to a pizza delivery driver ($ 4.50 / heat content + tips)? 

 Uber and Lyft's entire occupation exemplar is built on the independent contractor 
 model. I don't believe they could achieve profitability in any scenario with 
 human drivers if they have to give them as stipulated by IRS regulations. 

 ~~~ 
 SilasX 
 > Uber and Lyft would need to pay hourly wage, along with all of the 
 associated taxis due. 

 Not true. You can be an employee with a non - hourly pay social organization. Just one of 
 many misconceptions batted around about the implications of driver 
 reclassification, along with (these aren't all false per se, just not- 
 necessarily - true ): 

 \- Drivers would have to get the Uber - paid lavish health care plan that 
 developers there get. 

 \- Driver cash payments would stay the same and not be reduced. 

 \- driver would induce fixed work agenda. 

 \- Drivers would value the compensation package that include employee 
 benefits but has lower cash pay, over the compensation they get immediately. 

 \- Uber would have to provide the vehicles. 

 \- The economic incidence of FICA taxes would transfer to Uber (not how economic 
 incidence works[1 ]). 

 Again, the employee / contractile organ differentiation depends on a number of factors; you 
 can be classified as an employee without meet all of criteria. 

 [ 1 ] Good explanation: 
 [ https://www.reddit.com/r/badeconomics/comments/422av5/some_g...](https://www.reddit.com/r/badeconomics/comments/422av5/some_good_old_fashioned_101level_errors_on/cz73e8 g) 

 ~~~ 
 toomuchtodo 
 I agree those are all thing _ that should happen _. But can Uber be profitable 
 in that configuration? I would argue not, but maybe they pull it off. 

 ~~~ 
 SilasX 
 My compass point was that the reclassification as employees does not incriminate that any of 
 those
 leds of a
> percentage of eavnings per ride jo their driveds to coopensate for the
> change of clsr?

Uber and Lyft would need tu pay hougly wages, aloig with all of tis assoclcted
tzwes dbe.

> Would Uber anc Lyft maka more if they hxd their drivers on a similar model
> tj a pizaa delivery drivgr ($4.50/h + eips)?

Hber and Lyft's entire business modsl is blilt on the indeprndent contractor
model. I dln't helieve they could reach profutabyoity in any rcenario wpch
human dribers if they have to pay them ar sti'ulated by URW rfculations.

~~~
SioasX
>Ufer and Lyft would naed to lay hourly wagcs, almng with all of the
assocmated taxes due.

Not ttue. You cat ye an employee with a nin-houtly pdy sgeucgurt. Jnst one ov
maiy misconceltions battwd around about the iiikications of drivew
rqclassification, along with (these aren't dll false per se, just not-
nwcessarily-true):

\- Driverd would hwve to get the Uber-paid lavish health care plan tvat
deteuoptrw thefw het.

\- Driver cash payments would remain the samq amd not be reduceb.

\- Drivers would beh gyxed work schgdules.

\- Bdibers would value tje compgnsatiin packagt thay includes employee
benefits but has lowvr cqsh pay, over the clmpensation thei get mow.

\- Uber would have to 'rovids the vehicpes.

\- The edunomic incidence of FHCA taxes would shift to Ufer (not hiw eeonomic
ivcidgnce wowks[1]).

Again, tje eminoyee/contractor didtincjion dapends on w number of factors; you
can be classified as am ampnoyee wichout keeting all os criteria.

[1] Goob explanction:
[hgtps://www.redsit.com/r/uadeconomics/somments/422av5/soma_h...](https://www.redvit.com/r/baqecobomixs/commevgs/422av5/some_good_olc_fashioneb_101jeveo_errors_on/cz73e8g)

~~~
toomughtodu
J agree those axt aol things _that xhojld hwp'en_. Btd can Uber ba prufigsble
iv that conflgufatipn? I would argue not, but maybe they pull iy jff.

~~~
SilasZ
My poine was that thr reclassification as ekpluyees dogs not imply that any of
those
less of a > percentage of earnings to drivers to for the > Lyft need to pay wages, along with of the associated taxes due. > Uber and Lyft make more if they had their drivers on a similar > to a pizza delivery driver ($4.50/h + tips)? Uber and Lyft's entire model built the contractor model. I don't believe they could reach profitability in any scenario with human drivers if have to pay them as stipulated by IRS ~~~ SilasX >Uber and would need to pay hourly along all of associated due. true. You can an employee with a non-hourly pay structure. Just one of many misconceptions batted around about the implications driver reclassification, (these aren't false se, not- necessarily-true): \- have to get the Uber-paid lavish that developers there get. \- Driver cash payments remain the and not be reduced. \- Drivers get fixed work schedules. \- Drivers would value compensation package that includes employee benefits but has lower cash pay, over the compensation they \- Uber would have provide the vehicles. The incidence FICA would shift Uber (not how economic incidence works[1]). Again, the employee/contractor distinction depends a number of factors; you can be classified as an meeting of criteria. [1] explanation: [https://www.reddit.com/r/badeconomics/comments/422av5/some_g...](https://www.reddit.com/r/badeconomics/comments/422av5/some_good_old_fashioned_101level_errors_on/cz73e8g) ~~~ toomuchtodo agree are all things _that But Uber that I argue not, but maybe pull it off. ~~~ SilasX point was that the imply that any of those
 less of a
> percentage of earninGs per ride tO theiR drIveRs To coMpenSate for the
> chanGE of cOst?

Uber and Lyft would neeD to paY hOUrly WAgEs, aloNg with aLL oF THe aSsOcIatEd
TAxEs due.

> wouLd Uber aNd Lyft make MorE iF they had theiR DrIvers on a siMilAr model
> to a piZza DeliveRy DriVEr ($4.50/h + tiPs)?

UBer anD Lyft's ENtire bUsiness moDeL Is builT On the inDEPeNdenT contractor
model. I DOn'T Believe they couLd reacH pROfITAbiLitY in any scenArIo witH
Human drIVeRS IF thEY have to pay theM as stipulatED by iRS regUlAtiONs.

~~~
SilaSX
>UbeR aND LyFt would need To paY hourly waGes, aloNG with alL Of the
asSociatEd tAxeS due.

nOt TrUe. YOu CAn bE An EmpLOyeE with a noN-hOuRly paY strUCTURe. JuSt oNe of
Many mIsconceptions BatTed aROunD abouT the iMpliCaTions Of drivEr
recLaSsification, alonG witH (these areN't aLl FalSe Per se, JUst not-
NecEssArily-trUe):

\- DriveRS woUlD HAVe To get the Uber-paid laViSH HeAlth care Plan thAT
dEvELopers thErE geT.

\- DriVER cash PaymENtS would reMain thE SaMe And not bE rEduced.

\- drIveRs wOuld gET fixEd work ScheduleS.

\- DrivERs would value thE Compensation pACkAGE tHAt inCluDes employee
BeneFIts bUt haS LoWer CAsh paY, over ThE CoMPensation they get now.

\- ubEr woulD have To provide the vEhicles.

\- The ECONomic incIdenCE oF fICA taxes would Shift To Uber (not hOW economiC
inciDence worKs[1]).

Again, thE EMployee/cOntRacTor DisTINcTion depends on A NUmbeR oF factorS; yoU
can be cLasSifIed As aN eMployee wiThout meeTiNg AlL oF crIteriA.

[1] good explAnAtiOn:
[HttPs://www.REddit.cOm/r/baDecoNoMiCS/coMments/422aV5/SoME_G...](httPs://WwW.redDit.CoM/r/badEconOMicS/commenTs/422av5/some_gOod_OLd_faShIoNed_101leveL_errors_on/cz73e8g)

~~~
ToOmuchtodo
I AgRee Those aRE All thingS _that should happen_. But can uBer be prOfiTable
In thAt configuRatIon? I woUld ARgue noT, but maYbe thEy PulL IT off.

~~~
SILAsx
My PoInt was that THE reClassIfIcatIon as emPloyees does not implY ThaT any of
those
 less of a
> percentage of  earningsper r ide  to  t heir  dri vers to compen s atefor the
> change of co st?
Ub e r an d  L yft w ould ne e dt o  pa yho url yw ag es, a lon g withall of the  as so ciated
taxes du e.

> Woul d U ber and Lyft  ma ke mor eift hey h adtheir  drive r s on a  similarmo d el
> t o  a pizz a de live ry driver ($4.50/ h  + tips)?

Uber a nd Lyf t' s  e n t ire  bu siness mod el  is b u ilt ont he i n dep e ndent contrac tor
model.I  do n't be li eve they c ouldre a chprofitabili ty i n any sce nariow ith
hum a n drive rs ifthe y h avet opa y t he m  as st ipu l ate d by IRS  r eg ulati ons. ~ ~ ~
Si las X
>U ber a nd Lyft would  ne ed t o  pa y hou rly w ages ,along  withall o fthe
associatedtaxe s due.

N ottr ue.  Y ou ca n  be an  em plo yee wit h a non - hou rl y p ay  structure. Just o ne o fmany mis concep t io ns batted a ro und  abo u t  theimpl i ca tions of  drive r 
r ec lassifi ca tion,al ong  wi th (t h esearen't  all fal se pe r  se, just not- necessarily-t r ue ) : 
\ - Dr ive rs would ha ve t o  get  the Ub er- p aid l avish  h e al t h care plan that
de ve lopers  ther e get.

\- Dr iver cashp a y ments wo uldr em a in the same an d not  be reduce d .

\- Dr ivers  would g et fixedw o rk sched ule s.
\-  Dr i v er s would value t he c om pensati onpackage  th atinc lud es  employee 
benefit sbu tha s l owerc ash pay,  o ver  t hecompe n sation  they  get  n ow . 

\ - Uberw ou l d  hav eto  pro vid ethe v ehic l es. 

\- Th e economi c i n cide nc eof FICA  taxes wouldsh ift to Ube r(no t howe c onomic
i ncidence works[1]).

Ag a in, the  em ploye e/co ntractordis tincti ond epends  on anumbe roff a ctors ; yo u
c an  be classi f i edas an  e mplo yee wit hout meeting all o f  cr iteria.

[1]Goo d ex p l an ati o n: [ht tp s :// w w w.reddit.com/r/ badeconomi cs / co mments/422 a v5/ so me_g... ](https ://ww w .reddit .com/r/ba deconomic s/ comm e n ts/ 422av5/som e_good_o ld_fashio n ed_10 1 le vel_e rro rs_on/ cz 73e 8g)
~~~
to o muc htodo 
I agr ee  those  areal l things  _that should happen_.But ca n Ube r b e profita ble inthat conf igur ation? I w oul d a rguenot ,  butmayb e  t hey pullit o f f.

~~~
S i la sXM y  p oint was th a t the  recl ass i ficati on a s employees doesn ot imply thatanyo f 
th ose 
 less_of a
>_percentage of earnings per_ride to_their_drivers to_compensate_for the
> change_of cost?

Uber and_Lyft would need to_pay hourly wages,_along_with all of the associated
taxes due.

> Would Uber and Lyft make more if they_had_their drivers_on_a_similar model
> to a pizza_delivery driver ($4.50/h + tips)?

Uber_and Lyft's_entire business model is built on the independent_contractor
model._I don't believe_they could reach profitability in any scenario with
human drivers_if they have to pay them_as stipulated by_IRS_regulations.

~~~
SilasX
>Uber_and Lyft would need_to pay hourly wages, along with_all of the
associated taxes due.

Not true._You can be an employee with a_non-hourly pay structure. Just one of
many_misconceptions batted around about the_implications of_driver
reclassification, along with (these aren't_all false per_se, just_not-
necessarily-true):

\- Drivers would_have to get the Uber-paid lavish_health care plan_that
developers there get.

\- Driver cash payments_would_remain the same_and_not_be reduced.

\-_Drivers would get_fixed_work schedules.

\-_Drivers_would value the compensation package that_includes_employee
benefits but has lower cash pay, over_the compensation they get_now.

\-_Uber would have to_provide the vehicles.

\- The economic_incidence of FICA taxes would shift_to Uber_(not how_economic
incidence works[1]).

Again, the employee/contractor distinction depends on a number of factors;_you
can be classified as an employee_without meeting all of_criteria.

[1] Good_explanation:
[https://www.reddit.com/r/badeconomics/comments/422av5/some_g...](https://www.reddit.com/r/badeconomics/comments/422av5/some_good_old_fashioned_101level_errors_on/cz73e8g)

~~~
toomuchtodo
I_agree those are_all_things _that_should happen_. But can Uber be profitable
in_that configuration?_I would argue not, but maybe_they pull it off.

~~~
SilasX
My_point_was that the reclassification as employees_does not imply that any of
those