California Forcing Uber & Lyft Bankruptcy

uh uber and lyft california let's talk about this so california wants to turn not just once two days ago this came out that they're turning our all their all their drivers from 1099 to w2 okay from 10.99 to w just in california this is just in california and i'll be okay here yeah just in california which means now everything all of those drivers that are working there not they have to work by the laws of a w-2 employees not a 1099. so the benefits of 1099 goes away for the drivers it's completely different game now what do you think is going to happen and who wins here who loses here i think everyone's gonna be a loser here including the state of california okay because they are driving businesses out of california like never before and then they're gonna expect the federal government to bail them out okay but if you so if you actually they they did a study on i think it was market watch but it's been published all over the place they they did a study on how much money an uber driver actually makes and after you take into car depreciation gas blah blah blah it comes down to about seven dollars an hour okay which tells me this if you're driving uber as a career very bad career choice if you're driving it to make immediate cash uh then great but just think about the wear and tear on your car you know and stuff uh but now they're wanting to make them employees which is going to turn them into what a cab company right uh so i'm actually kind of interested to see what happens there because now are you an employee driving your own car just like you said the 1099 benefits are going away so now you're not able to write off the depreciation to your car and all this stuff dude they're going to lose drivers left and right or they're going to have to turn into a cab company in california you know who's protesting this the most you know who's protesting this the most customers are sitting around saying i have no idea what the hell happens to me i don't know the difference customers are not protesting this drivers are protesting this the same people that these politicians are supposedly fighting for are saying stop fighting for me leave me alone let me be 10.99 why are you bothering me i don't mind being 10.99 so so imagine i'm your lawyer okay and i work for you you tell me what to fight for you right hey here's what i want you to do i want to be able to get away with this i want to be able to do this i don't want to be able to but don't worry about this party no no no i really want to fight for no no you don't have to fight for this for me i don't care this one i did leave it i like it the way it is no we have to negotiate that leave it alone this is a case where the attorney is the state and they're fighting on behalf of the drivers and the customers while the drivers and the customers who the customers are saying stop fighting for me you're hurting me you're getting in the way don't bother me let me get to work right more and more reasons why people are starting to realize deep down on the inside guess what everybody is deep down on the inside everybody fiscally is conservative everybody deep down on the inside is conservative everybody deep down on the inside is a form of a libertarian what is a form of a libertarian leave me alone dude why are you bothering me so much what do kids hate the most as they age a hovering maybe a helicopter a helicopter father or a mother right so i i think this is going to end up very bad for a lot of people uh in in the state of california have an interesting opinion sure let's hear it so i i think a lot of times with these drivers and look i haven't had a car in 10 years i've i'm lift and ubering everywhere i go uh saves me a lot of money by the way i've done the math on that you know and i have a lot of conversations with these drivers and i always ask them like so is this what you do is this like how much money do you make tell me about what your career and you know half the driver is like no this is this is what i do and i'm waiting for like the other shoe to drop no like no this this is my job period and then there's people that are like yeah you know i i'm a little side hustle thing but i'm in school or i got another job or working at a factory and this is like my side hustle so it comes down to pat's question is who do you want to be and i'll tell you what if you have bigger aspirations and you have goals and you have a career path that you're on 1099 might be great for you man because you come and go as you please you're not worried about this being your your final end stop there's people that you're like you're telling me i could just drive lift and uber all day i'm an employee i get my benefits i work 10 hour shifts i go home they're good believe me well there are there are people what's your point there are people that would rather be employees they're not all saying i want to be 10.99 i hate this kidding me are you kidding me no what percentage you think would like to be employees i don't know we should we should we should what the percentage of uber drivers do you think want to be employees are you saying i'm a majority at the end of the day are you saying majority of drivers are full-time i'm saying are you saying majority of drivers are full-time pull up to see the data i would i don't know that the majority of drivers are what 40 hours what do you say are you saying majority of drivers are full-time i'm saying there's a large contingency that yes that is their full-time job no no but but are you saying question for you do you think the majority of the driver i think 51 percent i don't know if it's that what percentage do you think do you think the whole pareto theory of 80-20 i would say i would say this is dude my guess say it i would say a third of drivers are [ __ ] time drivers if a third of drivers are full-time can you pull up the percentage so but how are you qualifying full-time they're working 44 hours 40 hours a week you're driving that's full-time to me yes all right and there's two questions you have to ask number one question you have to ask is what percentage of drivers are full-time that's question number one let's find that second question after that is what of the people that are full-time how many of them want this thing to be converted into a w-2 instead of a 1099 okay if it's a w-2 instead of a 1099 now there's additional things that the person that's paying you w2 can do to you it's a completely different thing that a person can do there's also upside to being a w-2 that is you get benefits there is no you get you get 401k there's no upside there is no upside let me explain to you why there's no upside here's why there's no upside okay how much profit do you think uber is making of their business model what is their percentage of profit that uber is making off their business model percentage of profit you tell me i don't know what do you think it is you think it's 50 do you think it's 40 or you think it's a 15 to 20 business probably closer on the lower if it's a 15 to a 20 business model what benefit do you get from hurting a company what benefit you get from herding accountability i think you're asking me whether i think uber wants to make their company's employees hell no they but but but but flip it who who is uber say you're running uber and the government and makes a decision like the state of california makes a decision like this what are you doing if you're uber do they forget who's in power here who's in charge here uber's in charge here of course what can uber do uber can say we're firing sixty percent of the dollars or they're going to increase the fees for customers nobody this is a situation that when you sit there like okay i want to go w2 do you really i remember one time i was telling the story to you yesterday we're in our office i'm running an office in northridge california shout out to diana powers this is not the best one but she'll laugh about this one shout out to this lady diana powers who's a very good friend of mine her and her husband paul one day we're having a full-timers meeting now keep this in mind i had a 4 77 square foot office space that i'm paying office for i'm paying rent for 250 square foot and i got you know you know ac i have to pay if i have to pay all i have for assistance i have all these people that i'm paying for right and i was the only sales office that had a full-on phone system set up i'm paying around twenty one hundred dollars a month for the phone system everybody had their own line front desk somebody would call you i'd like to speak to diana powers may i please place you on hold yes let me transfer you other companies are making you use your cell phone or what was it everybody else like use a metropcs your sales office your real estate office use your own sales office right but you're like yo i got phones i got phones for you okay cool we're sitting there and she says i gotta tell you the other day a transfer was dropped and i'm seeing a lot of transfers are being dropped when calls are being made and when people call back it doesn't go directly to my phone we have to figure out how do we fix this and i said dana let me is this in a community yes it is i said let me fix this inconvenience for you she says what's that i said veronica please take the phone system out of the office starting tomorrow there are no phone systems everybody's like but we didn't complain about it but you pay a price for one person complaining because i'm on the lease not you do you want to pay the 2100 no problem so if the state of california wants to do this the business gets to decide how they change the comp to customers and how they change to come to the drivers the price will be paid tremendously by somebody like you who likes uber and who likes lyft and by the way if this becomes a trend and goes to other states people like you are screwed you will not like this it's going to hurt you the customer it's going to hurt the driver

Channel: Valuetainment

Views: 124,322

Keywords: Entrepreneur, Entrepreneurs, Entrepreneurship, Entrepreneur Motivation, Entrepreneur Advice, Startup Entrepreneurs, valuetainment, patrick bet david

Id: oxdk6UEAqw4

Length: 9min 29sec (569 seconds)

Published: Thu Aug 13 2020