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Don't Kill Innovation With Excessive Regulation


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ride-hailing service driver and passenger

Despite an emerging narrative of ride-sharing companies as villainous, the notion that they are ruthlessly making life miserable for their drivers is simply not true.

Ride-sharing platforms work by connecting consumers to those who want to monetize their assets in a flexible way (e.g., work part-time, unusual hours, or more than full-time). The platforms create market efficiency, increase availability of services, and reduce cost to consumers.

Unfortunately, California's new law forcing ride-sharing companies to treat drivers as employees instead of independent contractors is the exact opposite of what made the ride-sharing business model so innovative.

From Scientific American
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