Need A Respone To Following Discussion Answering The Following Questions From Professor Also Need Two Responses For The Following Discussions Below
Your first task is to articulate the economic system (or combination of characteristics of both socialism and capitalism) that such laws depict.
It is observed that there are several characteristics which are similar for both Socialism and Capitalism. One of them is that personal self-interest plays a critical role within an economic system. However, it is vital to note that the direction for which particular interest is used is considered to be different (Isaac, 2019). For instance, research from economists shows that desires derive the primary reason for a capitalism society for personal interest Socialism; on the other hand, makes a focus on the community-driven form of motivation.
Your second task is to examine the laws that either support or limit the operations by Uber.
Uber and other taxi company’s functions in the market just like any other transportation company in the market. One thing to note about Uber and its competitors in the market is that they usually classify their driver as either third-party service providers or independent contractors but not as employees. By so doing, it is observed that they are not to factor in critical things such as overtime or any other form of benefits such as healthcare insurance, vacation leave, among others. However, there are laws which have been set out to counter these moves by the Uber owners. For instance city of Houston, Texas, Ordinance No. 2014-754, “chapter 46 of the City of Houston Code of Ordinances(“code”), is an act which has been set out with the aim of controlling the operation of cars for hire within the city (Manley, 2017).
However, because Uber has distinguished itself from other taxi company by saying that it is a tech company, it has been in a place to avoid such forms of regulations. This law also states the standard rates which need to be charged by this taxi company, but we are in a position to note that the Uber Company can sometimes cost a low price.
Your third task is to analyze how your findings from your first and second tasks affect Uber.
There is a high tendency that Uber is more likely to fall under capitalism form more so depending on how it is operated. They are observed to be working under the personal self-interest model. The company states that it is the only Tech Company in the market to distinguish itself from other transport companies in the market. The only thing which they can consider themselves to have a difference with other companies is that they only provide a platform for connecting the rider with the driver. The ultimate goal for this business is to earn profit just like any other company or business venture in the market (Miranda, 2016)
The fourth task is to present your moral position concerning Uber. For this latter task, you will need to identify one of the three ethical theories covered in the Week one (utilitarianism, deontology, or virtue ethics) as support for the moral position that you are taking. For example, you may hold the moral position that Uber is morally justifiable because it provides a good for consumers that fill in a gap that had not been met by the taxi industry. Or you may take the position that Uber’s positioning in the market is morally wrong.
The form in which Uber operates its business can be viewed as Utilitariasm because their operations are considered to be much beneficial to everyone. However, this should not be the main reason why they deny their drivers an excellent compensation package or benefits. For instance, in March 2015, one of the former Uber drivers sued the company for failing to pay his wages as well as the reimbursement expenses. The plaintiff further stated that the company had misclassified him as an independent contractor and not as an employee of the company. The court made a ruling that though there are cases where a worker is treated as an independent contractor; the overriding factor is that the individual who is involved in performing the task is not engaged in an occupation or business which is distinct from that of the defendant. Research conducted in the market shows that Uber usually controls almost all the aspect of the drivers work without an exemption on how long the driver is working. Once a drive is deemed to be active, they are mostly under the control of the company (Manley, 2017).
Isaac, M. (2019). Super Pumped: The Battle for Uber. New York, NY: W. W. Norton & Company.
Manley, M. J. (2017). Take the Ride of Your Life, with The Uber-Groover! Strategic Book, Publishing & Rights Agency.
Miranda, W. (2016). The Uber (Company) Handbook – Everything You Need to Know about Uber (Company). Emereo Publishing.
Presumably, Uber could only have been built in a governmental system in which a company was allowed to experiment and try ideas out. This has historically been the position of the United States: let companies compete for market share and the best company will (it is thought) inevitably drive prices down and quality up. That’s what the free market is designed to do.
Let’s look at that for a moment, and specific to the United States: is that why people want to immigrate to the United States? Is the USA more hospitable to business creation than other countries? If so, why are some people afraid of immigration policies that let in hard-working people who just want to take their shot at the so-called “American Dream”? My wife’s family immigrated here from Cuba, and they ended up doing just that: started a business, did well, and they left their family much better off than they were in Cuba. Could the same be said for others? Does our economic system reward those who work hard and are creative, like the Uber creators?
Need Responses for the following two discussions:
Uber Inc is a business that uses the mobile app model to provide on-demand transportation and other services to its customers through contracted drivers. Uber does not own any of these vehicles, and their drives are not required to have a taxi license. While these drivers are considered contactors and can have a sole proprietorship or single owned LLC status, legal courts have pierced this veil and in circumstances held Uber liable for their drivers (TechCrunch, 2015). Compared to traditional taxi services this is much more convenient for a customer to summon an Uber driver through the proprietary mobile app. Because of this convenience Uber has dominated the transportation market that was formally occupied by taxi companies while contracting more and more drivers. Due to its profits and growth, the contractor status of Uber’s drives has been speculated by the California Labor Commission as they state Uber is should now be structured as a transportation business with an employee model (Steinmetz, K., 2015). Uber contests these claims, while having its headquarters in San Francisco, the state in their legal terms and conditions they are “a private limited liability company established in the Netherlands” (Uber, 2017). Essentially, Uber is attempting to maximize profit and deflect liability to its drivers through jurisdiction and contracted drivers, their principles showcase traits of capitalism. The state of California does not recognize its business structure anymore and is requesting a reformed structure with a focus on socialism.
The result of the ruling was that ride share or mobile app drivers in the state of California will be considered employees through a legal act Assembly Bill 5 and abide by local labor laws. Recognizing these employees at the state government level and demonstrating the interest of people shows the California Labor Commission’s preference for socialism (Fieser, J., 2015). Other evidence to socialism is the ruling of the previously mentioned suite, Berwick V Uber Technologies, where driver Berwick was in favor of the court and rewarded for damages (Berwick v. Uber Technologies, 2015). Uber’s claim, in the true sense of capitalism, is that it is purely a technology company and Assembly Bill 5 should not apply to them (Marshall, A., 2019).
Assembly Bill 5 threatens Uber’s profits and “would cost Uber $3,625 per California driver, or about $500 million a year” (Marshall, A., 2019). Uber most likely is most interested in the capitalism notions of a profit motive and that greed is good, this act will cost them money, and they like money a lot. If Uber cannot contract its drivers and must account for them as employees under the business entity, Uber is no longer able to deflect all liability. Also, if drivers in the state of California are considered employees they might be entitled to benefits the same as full-time employees.
My stance on ethics is of virtue ethics and the four cardinal virtues. I think that considering a person’s wealth based on their character and actions is very enduring. I do not believe Uber is actions reflect this type of ethics and they are doing wrong by them. Their prudence is to avoid the situation and claim they should not pay for employees, lawsuits against them disagree this is the right course of action. While they dare to stand against these claims, their courage comes from intimidation behind capitalist motives. Uber’s temperance shows no restraint as they continue to grow and develop their platform in other countries who may be oblivious to the California ruling. By deflecting liability to their drivers through the contract they lack the justice to stand for their platform.
Uber was founded in March 2009 and is based in San Francisco. Uber has operations in over 785 metropolitan areas worldwide. The economic system that Uber mainly encounters is capitalism. Although Uber operates worldwide, I would like to focus on its operations in the United States, specifically California. According to the text, “capitalism maintains that personal self-interest, not community interest, motivates business activity; the major sources of society’s economic production should be privately owned, not governmentally owned; and economic planning should be decentralized through market competition, not centralized through government policy” (Fieser, 2015, Chapter 2, Capitalism and Socialism Defined, Section 2.1, pg. 36). Uber has been able to find a creative way to maximize profit through its innovative use of web based technology to link a customer with a service. Uber is regulated by the California Public Utilities Commission (CPUC) as a transportation network company (TNC). Currently, the state requires all transportation network companies to get a permit and commercial insurance coverage for drivers while they’re working for Uber and to run criminal background checks on drivers. As a matter of public record, the CPUC issued Uber a permit on February 4, 2019 and expires on February 4, 2022. The permit may be renewable every three years. (California Public Utilities Commission, 2019). The permit clearly states Uber is a TNC and that it is not permitted to own vehicles in its operation. What this means is that is not a taxi service and is not governed the same way. According to our text, “Uber has been heavily criticized for its “surge pricing” strategies that can sometimes charge customers up to seven times a normal fare during peak hours of demand” (Fieser, 2015, Chapter 2, Anticompetitive Practices, Section 2.5, pg. 53). Although it may seem unfair to customers, ultimately it is about supply and demand. If surge pricing did not exist, this would translate into deterioration in the available of services during peak hours.
I believe that Uber has not committed a moral wrong. From a utilitarian perspective, this means that I view the moral good to come from “the consequences of that action are more favorable than unfavorable to everyone” (Fieser, 2015, Chapter 1, Section 1.3, Moral Standards, pg. 16). In addition, utilitarianism does not necessarily aim to benefit the majority of the people, but rather to maximize the overall amount of happiness resulting from a decision. Uber is providing an extremely useful service that connects consumers to a service that is easily accessible, easy to use, and provides real time information on the status of the service.
Each of your replies should be at least 200 words, and informed by the course material. As such, the replies must have citations and references in APA notation. Your list of references for each reply should include all of the course material that has informed your reply, in addition to any research that you have obtained on your own.
Your replies should focus on the specific examination presented by your fellow students. Address (a) the characteristics of the relevant economic system as presented by your fellow student, (b) the analysis of how laws and/or the economic system affect Uber, as presented by your fellow student, or (c) the moral judgment presented by your fellow student. For any of these choices, you should examine whether the examination or analysis was carried out accurately and successfully. You are encouraged to disagree and challenge what was presented by your fellow student. This does not constitute an attack on your fellow student but an attempt to arrive at a better understanding and application of the material. But you need to provide reasons and support for your disagreement or challenge and propose a more accurate or defensible alternative.
As mentioned in the Week 1 discussion, keep in mind that although the notion of the moral good will vary among ethical theories, they often produce the same or similar results. So make sure to distinguish (a) the intent and (b) the consequences of the action under examination.