CLEAN : An expert discusses California's gig economy rights bill

The video discusses the implications of employees becoming eligible for benefits like minimum wage and unemployment insurance, which increases labor costs by about 30%. Companies argue this poses a risk to their business model. However, they can offset costs by raising fares slightly without affecting ridership, which has been growing. Companies can also reduce commission rates and still remain profitable. The video compares these commission rates to those in other industries, like Visa and MasterCard, which have much lower markups but still generate profit.

What are some of the benefits that employees will be eligible for according to the video?

• Flexible working hours

• Health insurance and paid leave

• Minimum wage and unemployment insurance

• Stock options and bonuses

How might companies respond to increased labor costs?

• By cutting down on services

• By reducing employee benefits

• By raising fares slightly

• By increasing working hours

What has been the trend in ridership in big cities over the last five years?

• It has been growing enormously

• It has been declining

• It has fluctuated significantly

• It has remained stable

What is the typical commission rate for Visa and MasterCard in Europe?

• 0.2-0.3%

• 2-3%

• 5-7%

• 10-15%

Despite lower commission rates, how do companies like Visa and MasterCard remain profitable?

• By increasing transaction fees

• By expanding into new markets

• By maintaining high transaction volumes

• By reducing operational costs