In: Accounting
Uber is largely hailed as the advent of the gig economy, which is the idea that people will not work for any one employer, but instead will work on projects for any variety of companies desiring their services. While creating a new type of entrepreneurship for individuals, it raises a host of new legal questions for companies around the law of agency.
priciples of agency are-
Don’t plan, act: "Don’t waste time writing a 40-page business plan. Stop talking to your mates. You’ll learn so much more from closing your first paying customer. Interviews and studies can be very misleading." by uber expert.
Focus on the customer:"Uber started with zero customers in Australia, so we had to offer both riders and drivers a better deal or none would have ever signed up. We learned that passengers wanted reliable, affordable rides, while drivers wanted flexible ways to make money. Sometimes regulations stand in the way of that vision, so we are obliged to start a conversation with the government about fixing them." by uber's expert
Disrupt yourself: "I frequently ask my team “how can you put yourself out of a job?” to encourage them to embrace smart technology to streamline routine operations. Then they can move on to more valuable tasks. I wish the SA Government would lead the way on this thinking, but when we see application forms take 30 working days (or more) to process you know that it must be built on people and paper rather than technology." said uber expert
The law of vicarious liability can be placed into an interesting context by examining the taxi company Uber. For example, in 2013, an on-duty Uber driver killed a six-year old in San Francisco as he drove dangerously. This raised the question as to whether her relatives could sue the driver, or Uber. In other words, was the driver an employee of Uber making them vicariously liable, or an IC thereby restricting the liability to himself?
Uber is a relatively new company growing at an impressive rate, and is distinct from traditional taxi companies. Regular companies are contracted by local authorities to work in specific areas. Customers call up, request a taxi for a specific time and place, or flag one down in the street. Drivers active under the terms of their employment with the company take passengers on their journeys. Upon the journey’s conclusion, customers pay the contracted drivers directly, meaning the drivers owe a proportion of their daily earnings to the company who employs them.