Not sure why Uber is entirely leaving CA instead of just raising prices

Hiring takes time. They have no ability to scale quickly. Just take a pause and wait on the vote in a few weeks. Hope something different doesn’t replace in the mean time.

Because uber has balls.

quote:

---

It’s nice to have frick you power. If I were Uber I would tell Cali frick you too

---

Boycott CA entirely, everyone should.

There's a lot more involved for the company by classifying them as employees other than payroll taxes and administrative issues, so a price increase isn't adequate.

The bigger questions is - why isn't everyone leaving CA as fast as they can?

quote:

---

I get the new law that mandates treating independent contractors as employees is immensely damaging to bottom line, but the vast majority of Californians will happily pay more in Uber fares to make up the new costs.

---

Because frick your payroll tax

quote:

---

Wouldn’t they be required to provide health insurance for the drivers if they’re considered employees because of Obamacare employer mandate? Add that to workers comp insurance. Then what do they do about drivers who live in a neighboring state but spend some of their time driving for Uber in California?

---

California requires much more then the feds insofar as healthcare.

quote:

---

Posts from iPhone

---

Made in China

quote:

---

It’s an inelastic

---

Every time I hear this I think of Stringer Bell talking about selling dope and coke in Baltimore.

I've seen that it's estimated there are 50,000 Uber drivers in CA. Obviously, you can't hire them quickly, so let's just say it's a phased approach - the infrastructure alone to the organization to take on 50,000 people would be HUGE.

But, let's just say they can get away with paying them minimum wage - $12.00 in CA. Then you're looking at $1,250,000,000 in regular wages alone annually ($12.00 X 2080 hours X 50,000). Do you kill OT altogether? Now let's look at benefits and employer taxes.

Take the massive number above and ad 25% for full burden - that's $312,500,000.

Loaded payroll is now $1,562,500,000 for just CA.

Not to mention, again, the additional software, headcount, and other miscellaneous costs associated with that many more people.

Medical costs...let's say the company pays $200 bi-annually for healthcare - $260,000,000

So now $1,822,500,000.

It would easily be over $2B for just the hard costs associated with this in CA, for a company that has revenues of $14B...and it LOST over $8B in 2019.