Pages

Sunday 24 September 2017

Uber, London and Capitalism

I don't usually like to talk tech over here on my blog, because that's what I do for work, and I'd rather get paid for these things. On the other hand, my work doesn't directly involve talking about Uber, and I have a few questions that are a little beyond the scope of my job, so I might as well run them here.

To begin, I kind of love the idea of Uber. The thought of using a smartphone app to call a cab and have it pick you up wherever you are is quite neat, and a no-brainer. I take enough taxis whenever I'm in Las Vegas for CES that something like Uber or Lyft makes intuitive sense.

On the other hand, I hate Uber's implementation, so much so that I've only every taken a ride-share three times in my life, and paid for it myself only once (but even that was only with a coupon). If the idea of providing competition to taxis is good for the consumer, Uber's strategy of eliminating taxis and all other competition completely surely isn't. The company is the classic revolutionary, who takes down a corrupt system only to become just as bad as what it replaced.

Note that I'm not talking about the sexual assaults or other crimes committed by Uber drivers, because there's nothing stopping regular cab drivers from doing the same stuff. The difference is that theoretically regular cab drivers are vetted and licensed, rather than simply showing up one day, with or without a car to drive, and taking rides.

Uber's also worse than cabs, in a way, because it's long fought against classifying its drivers as employees. Providing benefits and decent wages would make it non-viable as a business, so it prefers to class them as independent contractors and drive their wages down as much as possible, to attract more users. More than that, research firm CB Insights has referred to Uber as a "Ponzi scheme of ambition", in which it keeps throwing out new ideas to attract investors without first establishing itself as a viable business in its existing activities. You have only to look at stuff like UberEats, its autonomous driving program or the flying cars idea to see that.

So when I see that London's stripped Uber of its license to operate, I actually approve, overall, with the caveat that what I want is for Uber to regain permission to operate there by becoming a more responsible company. Indeed, for all the scorn heaped on London mayor Sadiq Khan over this decision, I'm betting that this is the long-term strategy.

Before I continue, let me note that a lot of my thinking on Uber comes from this article in the Guardian, published last year. Let me also note that my complaints about Uber extend to Lyft and other gig-economy startups, which are creating a vast stratum of shitty jobs that cater to richer people and that will disappear once everyone figures out robots.

(BTW, another reason I decided to tackle the Uber thing here is that I wouldn't be allowed to swear on my work blog)

Former CEO Travis Kalanick - one of my most despised libertarian Silicon Valley douchebro figures - has gone on record as envisaging his ideal Uber ride as a never-ending service where multiple passengers are picked up and dropped off without breaks or interruptions. Ignoring that this is basically just public transportation, it also points to either a need to exploit drivers or to get rid of them altogether and use autonomous vehicles. It also ignores the simple physics of having to recharge or refuel the car from time to time.

If we look at the point about getting rid of drivers completely, I have to ask, why are businesses so keen to get rid of human employees? I understand removing the employees who aren't as productive as their colleagues, though even this can lead to suboptimal outcomes if you're grading on a curve and punishing employees for being just 1% less productive than their peers. But a lot of the discussion in tech and business circles seems to revolve around getting rid of as many employees as possible (or sometimes more).

Uber supporters have pointed to the 30,000 or more drivers who'll be jobless because of London's decision. But frankly, that's a decision that Uber's hoping to make as soon as it gets permission to run autonomous cars without drivers, so it's a little rich to see it defending its drivers' rights now.

We then also come to the question of who will be able to afford Uber or other services when everybody's been laid off, which inevitably leads to universal basic income, an idea that I would welcome if libertarians weren't tossing it out in lieu of actually considering the impact of their decisions.

First of all, we've seen some societies, like in Britain, that have multiple generations of families subsisting on welfare, which doesn't seem to be an ideal outcome. Second, there's the question of how governments will pay for UBI, since it will presumably not be taxed. Third, and as a corollary, governments are eventually going to want to reduce their spending, so what will those who receive UBI do when their checks stop coming?

I'm sure there are more arguments that I'm missing, but those will do to begin with. My point is that we seem to have blinded ourselves to the impact that certain technology is having on society. Rather than limiting the technology, which is as stupid an idea as forging ahead without any consideration of its effects, we need to be having a discussion about what it will mean that some jobs will disappear and rather than just pushing money at some classes of people to make them go away, thinking about how to direct them toward jobs that are useful and dignified.

Being a greeter at Walmart may be safer than coal-mining, but it doesn't seem any less exploitative. We need to be giving workers displaced by technology a third option, a fourth, or as many as it takes to them out of the house and feeling useful.

No comments:

Post a Comment