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 "This 'on demand,' or so-called 'gig economy,' is creating
exciting opportunities and unleashing innovation but it's also
raising hard questions about workplace protections and what a good
job will look like in the future," Clinton said in her first major
economic speech as a Democratic candidate for the November 2016
presidential election.
Sharing economy companies like ride service Uber and home rental
service Airbnb typically rely on independent contractors rather than
full- or part-time employees. The companies argue that they offer
workers greater flexibility, but others say the workers miss out on
key benefits such as workers' compensation.
Clinton said that she would "crack down" on bosses who misclassify
workers as contractors when they deserve employee status, which is
the subject of several class-action lawsuits, including against
Uber. Employees draw more benefits than contractors.
But some involved in the sharing economy argued that they provide
important benefits. "Governmental leaders should be happy and look
for more ways to encourage that type of innovation," said Shawn
Carolan, a partner at Menlo Ventures who is an Uber investor.
"These are well-paying jobs, well above minimum wage when people
drive, offer lots of flexibility in schedule, etc.," he said in an
email.
Others cheered Clinton. "She's right: needs more thoughtfulness,"
tweeted venture capitalist John Lilly Monday.
"More concretely: we should have real conversations about what the
future of work looks like, and how we want things to be."
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Bill Gurley, a venture capitalist at Benchmark and Uber backer, said
that local politicians rather than those on the national stage tend
to see the benefits of sharing-economy companies faster.
"Most of the mayors around the country are starting to see how Uber
can impact drunk driving, how Uber can impact traffic congestion,"
he said. "They can hear from their citizenry more closely."
Uber and Lyft, its rival in the ride-sharing business, declined to
comment on Clinton's remarks.
The Democratic hopeful has two Bay Area fundraisers approaching,
including one given by Chris Kelly, an early Facebook executive who
is friendly with several Uber executives and investors.
Shyp, a shipping company that recently announced it was switching
its workers to employee status, did not want to take a stand on what
other companies should do.
"All of these business models are incredibly different," a spokesman
said.
(Reporting by Sarah McBride; Editing by Leslie Adler)
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