“They absolutely own the problem that they have right now.”
– John Chuang / CEO, Aquent/Vitamin T
As ridesharing companies struggle to find drivers, questions are, once again, being asked about the companies’ business models and their approach to the way they pay their drivers. Aquent/Vitamin T CEO John Chuang recently joined a conversation on Yahoo! Finance Live and says the companies themselves are responsible for their current problems. They pay very low wages and they don’t provide benefits. With better paying jobs that are offering benefits available, (Amazon is paying $15 an hour plus benefits) drivers are voting with their feet and leaving. Will the current situation cause a reckoning within these companies? Chuang says, “I would not hold your breath for that. I think if anything, they are doubling down on the gig economy.” He adds that the real issue is that their lower-cost business model is not sustainable. The solution, Chuang says, is to let normal labor laws that we've had in our country for 100 years apply to the gig economy companies.
This story originally broadcast on Yahoo! Finance.