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Comment by frotak | Hacker News Reader

I imagine that would only be orders of magnitude harder to manager in this circumstances than in previous generations.

Especially for Uber who can incentivize payouts in an elastic fashion as the available labor pool shrinks. Service quality might decline a bit as available drivers decrease...but Uber won't even have to explicitly go out and find "scabs" - they can simply temporarily surge pricing to entice some of the drivers who either aren't striking or who aren't as committed.

Difficult indeed to really cut at the heart of Uber in this case and really swing some leverage as organized labor.

Especially with the setback face in U.S. court.

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I mean, the surge in pricing wouldn't even be a thing someone has to do. It would just happen automatically.

That's the whole problem with this issue: Uber has made the market for taxis/rides incredibly liquid, which has driven the prices down to pretty much exactly the marginal costs. There are plenty of people who have already sunk the cost of a car, and have nothing else to do, so it still makes economic sense to do this with their time.

If the demand for unskilled labor doesn't increase, this will get worse.

Uber operates with a loss. The prices are under marginal cost. The drivers have no scale benefits like ordinary Taxi companies when it comes to buying cars or maintenance.

It only makes economical sense to drive for Uber with the car if you can't sell it for a good price (you know the car is good and not abused, the buyer doesn't) and that you don't plan on buying a new car after the wheels fall off on the present one, or you need to liquidize your assets a little bit, i.e. getting approx. 100USD for decreasing the value of the car and buying gas driving for Uber for 100USD.

That's why effective unions, like every government, use the threat of violece to enforce the social contract. They can delegate completely to the government if they can win recognition as employees (they aren't ICs under a reasonable reading of law) and jump through the appropriate hoops to get a closed shop.

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