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California law tries to help independent contractors, but what’s really happening?

(BUSINESS NEWS) California is trying to make Uber and Lyft turn their independent contractors into employees, but what does this mean for the state’s freelancers?

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In a serious blow to freelancers across the state, California has recently made a move to force Uber and Lyft — the popular rideshare companies that act as an alternative to taxicabs — to recognize their drivers as employees. As it stands, California is the country’s biggest market for these two industries, and these new measures are calling into question the future of the state’s gig economy.

Back in January, California introduced a new bill (the controversial AB-5), which made it harder for companies like Uber and Lyft (as well as other courier-type businesses, such as DoorDash and Grubhub) to categorize their drivers as independent contractors. The bill arose out of protests from these drivers, who are not given certain privileges that waged employees receive. Their demands included healthcare, overtime, and unemployment…all things that are fairly standard for employees, but not available to independent contractors.

Unfortunately, this bill not only didn’t accomplish what it had set out to do, but it also completely devastated the freelance industry in California. Immediately gig workers and independent contractors across the state found their employment status called into question, with many out-of-state companies firing their freelancers out of fears that they’d have to categorize them as employees, as well. Other industries in the state released a number of their independent contractors, making the remaining ones work twice as hard to pick up the slack from fallout left behind by this bill.

While AB-5 still hasn’t taken its final form (and already amendments to this bill have been made to reflect the feedback from the state’s independent contractors), that hasn’t stopped Uber and Lyft from pushing back on it. In response to this new measure, they’re trying to introduce their own bill, citing that it would better serve the needs of their drivers. In a statement, Uber noted that their drivers prefer the independence afforded to them by their contractor status, and if this bill passed, some 158,000 drivers would lose their jobs.

Proponents of the bill, on the other hand, cite the potential benefits of it. They remark that passing it can help increase efficiency in the major cities, reduce traffic congestion, and while it can possibly lead to higher prices on these rideshare apps, it may also help dramatically decrease pollution, as well.

Both Lyft and Uber have rallied together to present their own ballot initiative, bringing their own money (to the tune of some $90 million) to the table to counter this measure. Instead of forcing these companies to turn their drivers into employees, they argue that the measure should be voted upon by constituents. These new policies should help appeal to the displaced drivers, providing them with benefits such as a minimum of 120% of minimum wage, an added $0.30 per mile for gas and wear and tear, automobile and liability insurance, and protection against discrimination.

As far as the existing freelancers and independent contractors in California, the jury is still out. Many of them have been left without a means to earn an income and are currently struggling in today’s coronavirus-impacted economy to find a source of sustainable income. Many companies are too anxious to take on the risk of accidentally finding themselves with an employee on their hands, making it all the more difficult for these freelancers to secure work.

If California Attorney General Xavier Becerra’s move to force the state to classify these gig workers as employees actually goes through, it will undoubtedly have a lasting impact on the state’s freelancers, gig workers, and independent contractors. It’s too early to tell what this impact will be, though. Perhaps it will be better for the freelancers in the state. It’s evident that many of them do want this bill to pass, but is bypassing a vote and moving directly to legislation the ideal move? Sadly, for the number of freelancers who want to retain their autonomy, their voices have ultimately been drowned out by the more vocal dissenters.

Karyl is a Southern transplant, now living on the Central Coast with her husband. She's proud to belong to two very handsome cats, both of which have made it very clear as to where she ranks on the social hierarchy. When she's not working as an optician, you can either find her chipping away at her next science-fiction novel or training for an upcoming race. She holds an AAT in Psychology, which is just a fancy way of saying that she likes poking around inside people's brains. She's very socially awkward and has no idea how to describe herself, which is why this bio is just as dorky and weird as she is.

Business News

Are Gen Z more fickle in their shopping, or do brands just need to keep up?

(BUSINESS NEWS) As the world keep changing, brands and businesses have to change along with it. Some say Gen Z is fickle, but others say it is the nature of change.

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Gen Z woman shopping outside on a laptop.

We all know that if you stop adapting to the world around you, you’re going to be left behind. A recently published article decided to point out that the “fickle” Gen Z generation are liable to leave a poor digitally run site and never return. Now of course we’ve got some statistics here… They did do some kind of due diligence.

This generation, whose life has been online from almost day one, puts high stakes on their experiences online. It is how they interact with the world. It’s keyed into their self-worth and their livelihoods, for some. You want to sell online, get your shit together.

They have little to no tolerance for anything untoward. 80% of Gen Zers reported that they are willing to try new brands since the pandemic. Brand loyalty, based on in-person interaction, is almost a thing of the past. When brands are moved from around the world at the touch of your fingertips there’s nothing to stop you. If a company screws up an order, or doesn’t get back to you? Why should you stick with them? When it comes to these issues, 38% of Gen Zers say they only give a brand 1 second chance to fix things. Three-quarters of the surveyed responded saying that they’ll gladly find another retailer if the store is just out of stock.

This study goes even further though and discusses not just those interactions but also the platforms themselves. If a website isn’t easy to navigate, why should I use it? Why should I spend my time when I can flit to another and get exactly what I need instead of getting frustrated? There isn’t a single company in the world that shouldn’t take their webpage development seriously. It’s the new face of their company and brand. How they show that face is what will determine if they are a Rembrandt or a toddlers noodle art.

The new age of online shopping has been blasted into the atmosphere by the pandemic. Online shopping has boosted far and above expected numbers for obvious reasons. When the majority of your populace is told to stay home. What else are they going to do? Brands that have been around for decades have gone out of business because they didn’t change to an online format either. Keep moving forward.

Now as a side note here, as someone who falls only just outside the Gen Z zone the articles description of fickle is pompous. The stories I’ve heard of baby boomers getting waiters fired, or boycotting stores because of a certain shopkeeper are just as fickle and pointed. Nothing has changed in the people, just how they interact with the world. Trying to single out a single generation based on how the world has changed is a shallow view of the world.

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Business News

Chasing Clubhouse success? How the audio chat room trend affects products

(BUSINESS NEWS) It is inevitable that when a new successful trend comes along, other companies will try to make lightning strike twice. Will the audio chat room catch on?

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Smiling woman seated in dark room illuminated by lamp and phone light, participating in audio chat room.

Businesses are always about the hot new thing. People are the always looking for the easiest dollar with the least amount of effort these days. It tends to lead to products that are shoddy and horribly maintained with the least amount of flexibility in pleasing their customers. However, you also have to look at the customer base for this as well. You follow where the money is because that’s where its being spent. It’s like a merry-go-round, constantly chasing the next thing. And the latest of these is the audio chat room.

During the pandemic the entire world saw an eruption of social audio investments. Silicon Valley has gone crazy with this new endeavor. On the 18th of April this year, Clubhouse said it closed on some new funding, which was valued at $4 billion for a live audio app. This thing is still in beta without a single penny of revenue!

The list of other companies who have pursued new audio suites (either through purchase or creation) include:

  • Facebook
  • Spotify
  • Twitter
  • Discord
  • Apple

This whole new audio fad is still in its infancy. These social media and tech giants are all jumping headlong into it with who knows how much forethought. A number of them have their own issues to deal with, but they’ve put things aside to try and grab these audio chat room coattails that are running by. It’s a mix of feelings about the situation honestly. They are trying to survive and keep their customers.

If a competitor creates this new capability and they stay stagnant then they lose customers. If they do this however without dealing with their current issues then they could also lose people. It’s an interesting catch 22 for people out there. Which group do you fall in? Are you antsy for a new toy or are you waiting for one of these lovely sites to fix a problem? It’s another day in capitalism.

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Business News

This web platform for cannabis is blowing up online distribution

(BUSINESS NEWS) Dutchie, a website platform for cannabis companies, just octupled in value. Here’s what that means for the online growth of cannabis distribution.

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A small jar of cannabis on a desk with notebooks, sold online in a nicely made jar.

The cannabis industry has, for the most part, blossomed in the past few years, managing to hit only a few major snags along the way. One of those snags is the issue of payment processing, an issue compounded by predominantly cash-only transactions. Dutchie, a Bend, Oregon company, has helped mitigate that issue—and it just raised a ton of money.

Technically, Dutchie is a jack-of-all-trades service that creates and hosts websites for dispensaries, tracks product, processes orders, keeps stock of revenue, and so much more. While it was valued at around $200 million as recently as summer of 2020, a round of series C funding currently puts the company at around $1.7 billion—approximately 8 times its worth a mere 8 months ago.

There are a few reasons behind Dutchie’s newfound momentum. For starters, the pandemic made cannabis products a lot more accessible—and desirable—in states in which the sale of cannabis is legal. The ensuing surge of customers and demand certainly didn’t hurt the platform, especially given that Dutchie is largely responsible for keeping things on track during some of the more chaotic months for dispensaries.

Several states in which the sale of cannabis was illegal also voted to legalize recreational use, giving Dutchie even more stomping ground than they had prior to the lockdown.

Dutchie also recently took on 2 separate companies and their associated employees, effectively doubling their current staff. The companies are Greenbits—a resource planning group—and Leaflogix, which is a point-of-sale platform. With these two additions to their compendium, Dutchie can operate as even more of an all-in-one suite, which absolutely contributes to its value as a company.

Ross Lipson, who is Dutchie’s co-founder and current CEO, is fairly dismissive of investment opportunities for the public at the moment, saying he instead prefers to stay “focused with what’s on our plate” for the time being. However, he also appears open to the possibility of going public via an acquisition company.

“We look at how this decision brings value to the dispensary and the customer,” says Lipson. “If it brings value, we’d embark on that decision.”

For now, Dutchie remains the ipso facto king of cannabis distribution and sales—and they don’t show any plans to slow down any time soon.

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