I could see labor classification being a major stumbling block for them however, and I'm curious as to your thoughts on this. Profitability may be attainable at $20/hr given sufficient scale, but it would be completely impossible with an employee based workforce.
I know SV has a culture of moving fast and breaking things, and when you look at companies like Uber and AirBNB you can see them facing a number of legal challenges around established regulations, many of which are protectionist in nature.
However, worker classification seems to be an altogether different issue, as it's much broader than the relatively obscure hotel or livery laws that those companies are facing, and which vary from city to city. Worker classification impacts nearly every service-based business in the country, and is mandated on both the state and federal level.
I know smart people don't invest in things that have fundamental, life-threatening flaws, so I'm curious to know how they expect to get around this issue.
I could see labor classification being a major stumbling block for them however, and I'm curious as to your thoughts on this. Profitability may be attainable at $20/hr given sufficient scale, but it would be completely impossible with an employee based workforce.
I know SV has a culture of moving fast and breaking things, and when you look at companies like Uber and AirBNB you can see them facing a number of legal challenges around established regulations, many of which are protectionist in nature.
However, worker classification seems to be an altogether different issue, as it's much broader than the relatively obscure hotel or livery laws that those companies are facing, and which vary from city to city. Worker classification impacts nearly every service-based business in the country, and is mandated on both the state and federal level.
I know smart people don't invest in things that have fundamental, life-threatening flaws, so I'm curious to know how they expect to get around this issue.