San Francisco's Yellow Cab Files For Bankruptcy (cnn.com)

Applehu Akbar writes: Yellow Cab Cooperative, the largest taxi company in San Francisco, has filed Chapter 11. While competition from those newfangled ride-sharing services is a natural target for blame, a more proximate cause is Yellow Cab losing an $8 million accident liability suit by a passenger who is now paralyzed. Apparently the Yellow Cab drivers are...registered as independent contractors. So much for the medallion cab argument that they offer superior liability coverage.

Comments

Re:wut?

[rmdingler]

I suppose the one small mercy taken from this is the paralysis would numb the screwed parts.

Re:Except Uber drivers arent registered as anythin

[Duhavid]

That is what being an independent contractor means for you.

The reason that Truck Companies, Taxi Companies, some Chicken Farmers are "independent contractors" is to push risk and cost out of the corporation and onto the I/C. And the profit stays with the corporation, it does not follow the risk or cost very well.

With Truck Companies, they dont have to carry the insurance, dont have to worry as much about fluctuations in the cost of diesel, Truck Maintenance, etc.
I recall a news article about how some Truckers were loosing money on loads because diesel costs went up fast,and the corporation the drivers were dealing with just didn't care, "the loads were sold, if you want to continue dealing with us, take it"

I also recall an article about one of the big Chicken sellers, they would have farms, the next group of gullible "we will make millions" people would buy the farm, because the "per chicken" payment was good. And maybe for a while, it would be. But then, they would lower the "per chicken" amount. Again and again, until those owners where soaked and gave up.

I understand that Home Depot will progressively lower the amount they are willing to pay their suppliers year over year, until the supplier goes under or gets smart and stops dealing with them.