7/27/2019

Gig Economy Caveman.

Press Release 

   7/10/2019

 

 

FOR IMMEDIATE RELEASE:

July 09, 2019

Contact: Shawn Towle, Vice-President for Governmental Relations

(763) 703-0077 shawn@corbata.com or 

Jon Schoen, Chief Experience Officer

(612) 581-8968 jon.schoen@corbata.com

 

Corbata Takes Right Turn in Gig Economy Regulation

 

[Sacramento, CA – July 09, 2019] – Since their entrance into the ride sharing market, Uber and Lyft have defined or rather have become verbs that do not finish a sentence. Though, neither has proven to be a good actor, as they could or should be. They’re not good community partners. Frequently, each either skirts or ignores the law, operates unethically, or applies poor business practices as their working model.  

 

The debate over AB 05 in California’s legislature is a response to these early adopters’ failure to consider driver control and this legislation is an attempt to secure hold over companies who are price fixers and create a liability for full payment of the costs they incur. It is clear, each fails to meet their complete obligations to their drivers, or to the cities and states in which they operate.   Practically, they launch into a new community forcing local elected officials to structure responsive legislation after the fact.

 

It is our view of the ride sharing community is not to be as Uber or Lyft as Transportation Network Companies (TNC) position is, but rather as a Transactional Integrated Exchange (TIE). The ability of each driver to start their own company, develop a relationship with the city or state in which they plan to operate and be an independent contractor with whichever company they choose.

 

Upon our arrival in CA, Corbata has approached the questions associated with company responsibilities to their related partners i.e., Uber to their drivers, differently. If Uber is a horse and Lyft a mule, then we’re a zebra. Because we don’t set the rates for the ride, but merely facilitate the exchange of information between two mutually interested parties, we are not under the umbrella of AB 05. Additionally, Corbata provides a fairer compensation rate to the driver with a 90/10 % driver side, compared to the other equines at 50/50 parity.

Where Corbata is the TIE between the rider, who is the contractor and the driver, who is the service provider. When we fully launch, we will not set rates for a trip, which is between the contractor and contractee. We will provide a higher level of safety and create a broader experience apart from the ride itself.

 

Corbata is different and will be seeking an amendment in AB 05 to make the distinction between the TNC’s like Uber and Lyft and the TIE world represented by Corbata. Additionally, Corbata proposes acceptance of a Transportation fee to be applied to every ride secured. This can offset the true costs incurred by the companies’ operations or for transportation projects. In Minnesota, the gas tax is distributed 2/3 to the state and 1/3 to the place of origination. If California adopts the Corbata plan, they will solidify a new revenue stream with a stable resource base as the economy of shared services continues to churn.

 

MEDIA AVAILABILITY: The two gentlemen listed above are actively engaged in sharing a new way to view the gig economy. Call as needed or tell us where you are located and we will come to you. 

 

Check us out. http://corbata.com

 

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MEDIA AVAILABILITY: Corbata representatives will be available July 10, 2019 for media and public commentary on July 10, 2019, joining Uber and Lyft drivers as they seek fairness while visiting the Capitol.

 

VISUAL AVAILABILITY: Remember: Uber and Lyft are four-letter words. You will see what we mean.

 

Contact Shawn Towle, Corbata Vice President of Government Affairs, to schedule an interview at (763) 703-0077.

Talking Points

Talking Points Concerning Corbata and AB 05

 

1. Corbata Exchange actually is what Uber/Lyft claim to be.

2. Because Corbata is only an exchange and not a TNC we have received numerous statements of support from different avenues that affirm because we do not set rates, hire, solicit, or contract for any good or service AB 05 does not apply. We merely provide an exchange for said goods or services to be accessed.

3. Because AB 05 does not apply, to Corbata as a Transactional Integrated Exchange (TIE) we would like to be listed as an exemption.

4. The Corbata Exchange supports the independence of people who use our exchange and their ability to associate and organize as they see fit. It is wise to unionize.

5. The Corbata Exchange is compliant with the ABC test found in the Dynamex ruling and the prior Borello decision.

6. The Corbata Exchange provided flexibility because drivers make all of the pertinent decisions, provides them with access to a dynamic exchange for a portion of their agreed fee and enables a provision of addition promotional opportunities.

7. When the Super Bowl was held in Minneapolis in 2018, we ran a test market, Uber drivers made the same rate of compensation in a week as drivers who used the Corbata exchange did in one day.

8. The Corbata Exchange is a purer form of a free market place and provides greater economic freedom to the drivers using the app.

9. A TIE is an outgrowth of the gig economy and our mechanisms help generate a new perspective. After the problems are shaken out and a new look is made, things are applied differently. Think gig 2.0

10. Corbata supports the creation of a transaction fee for those who fall under AB 05 as a revenue mechanism for California.

11. The Corbata Exchange will inform all who use our exchange the expectation for being in compliance with all laws, ordinances and rules which are applicable in a specific jurisdiction.

12. We encourage drivers who us the Corbata Exchange to become their own business to take advantage of tax options.

13. Finally, as an exchange Corbata provides the environment for commerce to occur while not dictating the activity, a place for people to meet and experience a breadth of options. Pick your driver and enjoy the ride.

© 2020 Corbata