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Technology Stocks : Peer-to-Peer, Gig and On-Demand Economies

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From: TimF3/8/2021 3:18:36 PM
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Glenn Petersen

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How dare they not want to be rescued
Natalie Solent (Essex)

Two days ago the BBC reported that the Supreme Court had ruled that Uber drivers are workers rather than being self-employed.

With what glad hosannas did the drivers greet the news of their liberation!

Er, no. As Sam Dumitriu writes in CapX,
Putting questions of legality to one side, it’s clear Uber’s business model works for drivers. If you don’t believe me, just ask them. Countless surveys have found that the majority of Uber drivers are happy with the status quo and would not sacrifice flexibility for greater security.

A survey carried out by Oxford University academics Carl Benedikt Frey and Thor Berger, in partnership with Uber, found that drivers reported higher levels of life satisfaction compared to other London workers, despite on average earning less. And, counter to the conventional wisdom, drivers typically worked full-time in other jobs before choosing to shift to Uber. Furthermore, more than four-fifths of drivers agreed with the statement: ‘Being able to choose my own hours is more important than having holiday pay and a guaranteed minimum wage’. They found that drivers would accept a move to fixed hours – but only if it came with a 25% pay rise.
Perhaps they had looked across the Atlantic and seen the results of California’s attempt to save gig economy workers from working in the gig economy:
In Uber’s home state of California, 70% of drivers backed Proposition 22, a ballot measure that created a carve-out for ridesharing services from the state’s tough laws on freelance work. The measure passed with 59% of the vote in November.

AB 5, the freelancer law which Prop 22 was responding to highlights how interventions designed to solve a problem in one market can have unintended consequences in others.

When it passed, Vox published an article: “Gig workers’ win in California is a victory for workers everywhere”. A month later they published another article: “Freelance journalists are mad about a new California law. Here’s what’s missing from the debate. The alternative to AB5 would be worse”. Two months later, Vox Media itself cut hundreds of freelance writing jobs in California.
samizdata.net
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