The Problem Of Insurance For E-hailing Drivers

Introduction

Ride-hailing companies interfere with transport on a large scale while also offering millions of drivers economic opportunities. Southeast Asian e-hailing giant Grab has launched its own usage based e-hailing insurance coverage for its driver partners. Grab drivers only need to charge their Grab Daily Insurance coverage if they go online at rates as low as RM1 per day on the phone. For Grab Daily Insurance, if drivers come online and start driving for Grab, protection lasts for 24 hours. The exposure scope varies from insurer to insurer, as does the premium although the price range for the premium stays between RM1 and RM2. Drivers must ensure that their existing motor insurance plan is protected by one of Grab’s insurance panels to opt in. After that, with a few clicks, drivers just need to opt-in to the app. When drivers have opted in, they can automatically deduct the fee for 24 hours when they go offline from their Credit Wallet.

Insurance coverage is triggered when the average premium is deducted. Grab drivers are required to obtain an e-hailing insurance add-on in addition to their existing private motor insurance plan under the new e-hailing regulations of the state. Grab Daily Insurance is a versatile and affordable solution and when they need it, drivers only need to pay for coverage. This removes the need to pay for an annual supplement that can cost up to RM400-500 a year, which may be a heavy financial strain for part-time drivers in particular. Drivers who have a motor insurance plan with the following insurers can opt into Grab Daily Insurance.

As part of Grab’s board of insurers and takaful owners, Allianz General Insurance Company (Malaysia) Bhd, AmGeneral Insurance Bhd, AXA Affin General Insurance Bhd, Berjaya Sompo Insurance Bhd, Chubb Insurance Bhd. Additionally, Etiqa General Insurance Bhd, Etiqa General Takaful Bhd, MPI Generali Insurans Bhd, MSIG Insurance (Malaysia) Bhd, RHB Insurance Bhd, Tokio Marine Insurans (Malaysia) Bhd, Zurich General Insurance Malaysia Bhd and Zurich Takaful Malaysia Bhd are also members of the group’s panel of insurers and takaful operators.

Content

This study essentially, e-hailing drivers will be required to meet conditions similar to those imposed on traditional taxi drivers, such as showing a driver’s identification card, having the car registered as a public service vehicle, passing regular vehicle inspections and having proper insurance coverage. Those who refuse to do so will be disqualified from renewing their license for public service vehicles and may also be prosecuted in court. When found guilty, they may be fined up to RM10,000, incarcerated for up to two years, or both. All private vehicle motor insurance plans expressly state the cover will be null and void if used to transport fare-paid passengers. No insurance protection for third-party damages is required by law without changes to existing policies. If so, e-hailing drivers would be in violation of the Road Transport Act 1987, and would therefore be vulnerable to massive lawsuits by those injured or kin of those killed. If they were at fault in a crash, they would have to pay substantial damages for damage to other cars, apart from their own complaint for harm being rejected.

Nevertheless, premium rates will only continue to be subject to tariff rates for third-party protection. As such, the Malaysian General Insurance Association, better known by its Malaysian acronym PIAM, should provide advice to the public unless it is barred by the Malaysian Competition Commission. While Grab and Uber enjoy a near-duopoly on the local market, customers can choose from about 15 local taxi apps, but they wouldn’t be popular if taxi rates were higher than those of private cars. Limousine taxis and other vehicles run by tour firms are the untapped market. E-Hailing Vehicles are permitted for up to 10 passengers, allowing tour operators to license tour vans under Bas Persiaran (tour bus) in Peninsular Malaysia, with an additional option as Hire And Drive Vehicle in Sabah and Sarawak, or as a private vehicle under national e-Hailing. Excise duty would be excluded if licensed under Bas Persiaran but not as a private vehicle, although exemption would be given for vehicles produced or assembled by Proton or Perodua.

Under the old Motor Tariff, insurance premiums were very high, the prices were RM26, RM102.50 and RM122.10 for each RM1000 for private vehicles, limousine taxis and Hire And Drive vehicles respectively, and the gap for the first RM1000 was even greater. An app for tour vans and cars could be developed allowing passengers to book a pre-arranged particular vehicle, but in full compliance with e-hailing regulations. But it must first ensure that all e-healing vehicles are licensed in accordance with the law.

Grab Malaysia launched motor insurance based on use and takaful for its e-healing drivers. The group said in a statement today that Grab Daily Insurance (GDI) insurance and taka policy were specifically designed in collaboration with 14 leading Malaysian insurers and takaful operators. The group reported that 80 percent of their drivers are part-time drivers, who can supplement their income by an average of 37 percent, in addition to income from their daily jobs. Grab Malaysia Head of Country Sean Goh said the GDI would help ease the cost burden on its drivers to continue driving the e-healing project of the company.

GDI is the latest product introduced by insurance arm GrabInsure from Grab Financial Group, an online insurance marketplace set up by a joint venture between Grab and ZhongAn Technologies Insurance International. To be covered under the GDI, Grab drivers will need to opt-in to the GDI as part of their version of the Grab app and make sure their respective motor insurance or takaful company is on the group’s board of insurers and takaful operators. Those who do not have an insurance policy on Grab’s insurance board will have to cancel their current motor insurance plan and instead move to one of these panel insurers, Allianz (RM1.90/day), AXA (RM1.80/day), Berjaya Sompo (RM1.00/day), Chubb (RM2.00/day), Etiqa/Etiqa Takaful (RM1.36/day), AmAssurance & Kurnia Insurance (RM1.06/day), Liberty (RM1.80/day), MPI Generali (RM1.33/day), MSIG (RM2.00/day), RHB (RM1.30/day), Tokio Marine (RM1.70/day), Zurich/Zurich Takaful (RM1.33/day).

It ensures that there will be more drivers to get their PSV licenses. Core initiatives conducted by Grab include subsidizing the expense of driver licensing (training, clinical examination of cars, PSV licensing fees), works with authorities (online learning platform, co-organizing review halls) to reduce capacity limitations and to ease the application process by assisting in the compilation and delivery of documentation to JPJ on behalf of our drivers.

Conclusion

Innovative connectivity solutions now improve millions of people’s flexibility and have the potential to deliver far greater benefits while meeting certain social goals. To realize the potential of these programs, the issues discussed in this document will need to be addressed by policy makers and regulators. In the spirit of extending the scope of these programs, the Committee offers the following recommendations with efficient and adequately sized community monitoring. It is the responsibility of public officials to promote transport systems that promote access while minimizing environmental costs. Sustainable mobility can be improved in part by fewer flights, shorter trips and more shared travel, which in turn can lead to decreased traffic, energy consumption and pollution. It is therefore in the public interest to implement public policies that affect the creation of advanced mobility services in order to achieve societal objectives. These policies could include promoting car-for-hire services, shared vehicles and micro-transit through economic incentives, better integration of private services with public services such as public transit.

The outcome should be to rethink the new proposed e-hailing industry regulations with a view to increasing new entry barriers and excessive price controls, as well as deregulating the existing taxi industry. The proposed regulations should be updated to remove the surge price cap and the operator fee limit, reduce entry barriers for new drivers by increasing the conditions for obtaining a PSV in particular the requirement for an additional driving course and ensuring electronic completion of the application process, simplify the vehicle inspection process by having other inspection facilities controlled by PUSPAKOM.

Innovative urban mobility technologies will continue to evolve, and academic and public policy groups will need to react quickly and in collaboration. The use of these services, which are yet to be established, would likely continue to transform passenger and freight travel. When connected and automated vehicles evolve and become popular, cooperation between these various stakeholders can become a precedent.

References

  1. E-HAILING REGULATION GRAB. (2019, JULY 9). Retrieved from GRAB: https://www.grab.com/my/blog/e-hailing-regulations/
  2. SHANKAR, A. C. (2019, AUGUST 6). THEEDGEMARKETS.COM. Retrieved from THEEDGEMARKETS.COM: https://www.theedgemarkets.com/article/grab-malaysia-launches-usagebased-motor-insurance-takaful-policies-ehailing-drivers
  3. TAN, J. (2019, AUGUST 6). Grab Now Has Its Own Daily E-Hailing Insurance. Retrieved from RINGGIT PLUS: https://ringgitplus.com/en/blog/Personal-Finance-News/Grab-Now-Has-Its-Own-Daily-E-Hailing-Insurance.html

The Kinds Of Globalization Drivers

Market Globalization Drivers

Market Globalization Drivers defined the develop of the consumer behavior whose are from all around the world, which include the degree of consumer needs compile around the world, consumer purchases behavior on global basis, distribution develop of all around the world. (Lardbucket, 2012) Current customer needs and taste who’s from different countries but want the same things in product or service category that the industry offers. Nowadays, the globalization trends of losing regulation and increasing the privatization of government are causing the competitive of global airline service become more intense. The company now are not only provided the needs of the customer but also good customer service and how to make customer use the easiest way to purchase the ticket. This trend make AirAsia facing a lot of challengers and potential competitive. As the slogan of AirAsia is “Now everyone can fly”, the low cost air fares is enough competitive with other country aircraft company, but nowadays the improve of technology and the demand of customer, only low cost air fares is just a simply factor to competitive, to enhance the population of AirAsia still need to promote better plan. On 3 July 2019, the Western Australia State Government has an agreement with AirAsia. The aim of the agreement is to developed an affordable flights to Western Australia to enhance the number of visitors. AirAsia had increase a stable marketing which was provided but Australia government, working with the government not only can develop a huge market but also enhance company reputation. (Sepang, AirAsia partnership to bring more holidaymakers to Western Australia, 2019)

Cost Globalization Drivers

The Cost Globalization Drivers is more involve in economics aspect. Cost drivers are usually decided productivity capital which also can know as distribution of capital standardized. A company set a cost of capital are usually to achieve the goal of various department and the cost globalization can decide the capable of company to competition with others. (Lardbucket, 2012)Although the world economic turndown may bring effect to the firm but it is also an opportunity for AirAsia. As we know, the turning bad of global economic will cause the aircraft leasing price reduce about 40% , the leasing of the aircraft dropping that means the AirAsia may lease the aircraft cheaper and reduce their cost. This may increase the income of AirAsia or reduce the ticket price to attract more customer to choose their company. In other word, different currency in various country also impact the globalization cost. For example, the business that involve in overseas market can be affect by currency in the way importing or exporting goods from Asia to Europe because Asia country currency are usually different with Europe. The payment may influence by currency rate exchange. The exchange rate may bring positive or negative influence to the firm. To solve this problem multinational companies are usually using dollar as trade currency and also depend on international market rates. (Hardy, 2017) In AirAsia company, they are using dollar as indicate aircraft operating lease expenses. From the studies we know that the weakness of Malaysia Ringgit is key element that impact company decide to use dollar to indicate in US dollar. (Reuters, 2017) Logistics is also very important to a firm. Logistics is defined as a process packed and deliver the goods or service to the customer to satisfy their needs. For international business, the logistics is not just easy deliver the goods from manufacturing facilities to customer doors. The multinational company logistics included send the goods to warehouse from manufacturing facilities and pack the goods in warehouse confirm the number of goods that customer needs, confirm which counties are they going and finally distribute out. The movement of product is very important, the inefficient logistics way may directly influence companies profit or cause the loss of company. (Craig, 2019) Although AirAsia is an aircraft company and its main duty is not to product and sold the goods all around the world, but sometimes the aircraft components or others consumables also need to import from other country or supplies, this process may involves logistics. Based on AirAsia is a low cost carrier company, they are trying to reduce the cost from all aspects. An efficient logistics way help company cut down a lot unnecessary expenses. AirAsia Group is discovering the potential logistics business with the help of EasyParcel which is a company using online parcel delivery services. (Saieed, 2019) EasyParcel is a logistics service platform that allow customer to check for delivery rate and what delivery way is most economically. (Yan, 2019)

Government Globalization Drivers

The Government Globalization Drivers is an important factor that shaping the global competitive of a company. Government Globalization Drivers included existing trade policies, technical standards and international import or export regulations. Government controlling can be known as protect the country trade or national safety. (Lardbucket, 2012) Nowadays, the regulation are become more focus on how to improve a company competitive in global environment but no really to protect the country. As AirAsia, the company has just announced that the company would collaborate with the Ministry Of Domestic Trade and Consumer Affairs. The aim of campaign is to support the government project which called “Buy Malaysia Product” this may help to drive the economic growth and improve global awareness of the quality of Malaysia made goods. This is a very good opportunity to AirAsia to let the consumer knowing the company providing excellent service and even the government also chosen the company as represented service company of Malaysia. AirAsia also not need worry about the ownership of the company because government doing this is just aim to increase more visitor from outside country to Malaysia and promote the Malaysia excellent local product by the first line that the visitor will first interact with, the aircraft company will be the best choice. The ownership are still with AirAsia group. (Sepang, 2019) On technology part, the aircraft of AirAsia will do all of the maintenance, repair and overhaul in Malaysia which government and Airbus company have a deal to establish sustainable aviation product line in Malaysia. This deal may increase the competitive through application of new digital technologies. AirAsia also can save a lot of cost in this deal, because they no need to import the expensive component from oversea and waiting for repair, all the step doing in Malaysia will be rapidly and efficient. (Sepang, AirAsia inks major deals with Airbus, 2019)

Competitive Globalization Drivers

Competitive Globalization Drivers defined as the factor which effect a firm competition in globalization. Globalization competitive also included several of competitors whose are from different national origin, global competitive allow that company having trade such as buying or selling the product at international platform, this provided a bigger market to the seller but also has enhance the difficult of selling the product because to stand out between the so many competitors the firm must require some special which others don’t have. (Lardbucket, 2012)The global competition of aircraft industry is very tough nowadays, every aircraft companies are trying to execute different or better strategy to compete with each other. However it is not easy to success in the competition, the company have to identify their operating and management strategy, because a suitable strategic may lead the companies to achieving their vision and mission. Due to that, AirAsia need to create a wonderful strategy which offering to their customer. If AirAsia successful launch the lowest cost carrier in world it definitely will enhance the competitive of AirAsia. (Catatan, 2009) The global competitor of AirAsia included Cathy Pacific Airway, Southwest Airlines, Alaska Airlines and Norwegian Air shuttle. Although these international aircraft not provide cheaper than or as cheap as AirAsia carrier cost, but they service, quality and good reputation are creating big pressure to AirAsia. As nowadays customer are not only want the cheapest price but they also request good customer service, so company are not only aim to compete at price aspect but also the service they provide. For AirAsia was suggested to provide a more convenience way to purchase the ticket such as provide customer to purchase the ticket online and use the QR code or bar to entry the departure hall. Customer no longer need to print out a piece of paper as a prove to enter departure hall, this action surely attractive many consumer choosing AirAsia just for the convenience. To make some special which different with other aircraft company, AirAsia encourage to have some new idea on it inflight menu. It will be fantastic if the AirAsia can provide delicious and special local food to it passenger. The food is not compulsory Malaysia local food, it may be some Asia favor food such as Thai tomyam sup, Thai boba milk tea, Hong Kong style Dim sum and Laksa. This is aim to the passenger is having the flight toward Malaysia or other country for tourism but they can try a different country food just like they only paid one journey fees but already travel to numbers of different country. (Paul, 2019)

Motor Vehicle Accidents Involving Food Delivery Drivers

In many ways, the continuing revolution involving the Internet and the constant changes in the use of smartphones has changed the way a lot of people do business. It used to be that, if you wanted restaurant food delivered to your home, your choices were limited to pizza or Chinese food. Over the last few years, however, the food delivery industry has undergone a major revolution, to the point that it’s possible to get food from virtually any restaurant or type of food you want. There is no question that food delivery apps like Doordash, GrubHub, Postmates, and UberEats have changed the food delivery landscape.

As of 2016, overall restaurant revenues in the United States reached nearly $783 billion and, while consumer spending on restaurant food delivery topped $30 billion, about $4 billion of that came through online delivery sales. Online food delivery has become increasingly popular, with a major portion of the population claiming they order food for delivery at least once per week. Statistics show that digital ordering and delivery of restaurant food have grown three times as fast as dine-in traffic since 2014. This is not surprising, since the number of food delivery apps has grown by 380% in just the past three years. At least 86% of restaurant patrons are using off-site delivery services (mostly smartphone apps) at least once per month.

With so many more delivery drivers using Texas and San Antonio roadways to do their jobs, the potential risk is often significant. Whether they are delivering fare like pizza or lo mein for a single restaurant or they are delivering more exotic fare for a delivery service serving a variety of restaurants for a particular smartphone app, their presence on the road represents an increased risk to all other drivers on the road. Because delivery workers drive for their jobs, when one of them gets into an accident with another driver, the question of liability can raise a number of interesting issues.

Determining Liability in a Food Delivery Driver Accident

When a delivery driver for a food delivery app gets into an accident, determining who is liable can sometimes be a complex matter. The first question to be asked and determined is whether the driver was “on the clock” for the delivery app at the time of the accident. If the driver is out making a delivery or driving to the designated restaurant to collect the food order, they are probably being compensated for that time.

However, their employer will naturally do everything they can to avoid liability, regardless of the circumstances. These multi-billion-dollar companies tend to argue that their delivery drivers were working outside of the boundaries of employment and were therefore driving on their personal time. For instance, accidents during normal rush hour commute times will typically be considered personal time.

Another question to be asked as a factor in these types of cases is whether the driver is considered an actual employee or an independent contractor. Not surprisingly, the employer will often try to claim the driver was an independent contractor. Legally speaking, this distinction shouldn’t really matter from the point of view of the accident victim, but the answer to this question can add more complexity to your case, as employers refer to their drivers as independent contractors in order to try to shift their obligations and responsibilities onto their drivers and away from them.

Of course, the reality is that an injured accident victim should be able to do the extra work to overcome the employer’s attempt to hide behind a contract. In most cases, the question of who is ultimately liable may be resolved through the analysis of the ownership of the vehicle involved in the crash. The owner of the vehicle that is used for business purposes is expected to maintain it in good working condition and may bear special responsibility if the accident was caused by mechanical failure. Regardless of the circumstances, however, it should be expected that the app owner/employer will employ strategies that attempt to shift blame away from itself and to its driver.

Insurance for food delivery drivers

Companies like Grubhub and DoorDash, which are among the most popular and richest meal delivery companies in Texas and everywhere else in the country, deal with their drivers in much the same way as ride-sharing companies like Uber and Lyft do with theirs. These companies form partnerships with local restaurants who do not have their own delivery services and they provide those services for them. A smartphone user pulls up their smartphone app and chooses food from their desired restaurants through the app, and Grubhub or DoorDash assigns a driver to deliver that food to their door.

As is the case with Uber and Lyft, Grubhub and DoorDash delivery drivers are considered contractors, not employees. They can pick and choose which deliveries they want to make, and how much or how little work they do. They don’t get a salary or benefits; they are paid for each and every delivery they make. When a driver signs on with one of these food delivery companies, they have to show proof of insurance, after which they are cleared to do deliveries. Drivers are then required to re-submit their proof of insurance several times a year after that.

That means there is sometimes a case in which the driver who caused the accident is under-covered, which can make the recovery of damages more difficult. However, if liability can be proven and the driver was working for the employer at the time of the accident, the employer’s insurance c0verage sh0uld be sufficient to cover the cost of compensation and, if not, the employer may have other resources, like additional insurance coverage, that can be used to make up the difference and cover the injured accident victim’s damages.

Why You Need an Experienced San Antonio Auto Accident Attorney When You Have Been Injured in an Accident with a Food Delivery Driver

If you have been injured in a motor vehicle accident in San Antonio or Bexar County, and it was caused by someone delivering food for a local restaurant on behalf of a major delivery app company, it is important that you choose the right attorney to help you through the process to get the best possible settlement.

Choosing the right personal injury lawyer to get what you are entitled to doesn’t have to be a difficult process. The best personal injury lawyer will have the following characteristics:

  • Compassion – Because you are in one of the most stressful and difficult situations you have ever dealt with, compassion is among the most important characteristics. The best attorney for you will be empathetic about your current state and understand your suffering.
  • Responsive – You need an attorney who can be 100% focused on your case. They should respond swiftly to your questions and concerns.
  • Involved – The best attorney is involved in every aspect of your case. They won’t pass your case off to paralegals, legal assistants and other staff. They will make your case a priority.
  • Experience – The right lawyer should have a solid track record of success against auto insurance companies, and they should have experience prosecuting car accident cases like yours.
  • Positive Reputation – The best lawyer will have positive testimonials from past and current clients. They should also be recognized by their peers for their achievements.

All Types of Auto Accidents

We have experience handling a variety of different claims, including:

  • Fatal car accidents
  • Rear-end collisions
  • Wrong-way collisions
  • Driver error or reckless driving
  • Multiple vehicle accidents
  • Accidents involving livestock
  • Inexperienced drivers
  • Distracted driving
  • Drunk driving accidents
  • Car rollover Accidents

How is Fault Determined in a Texas Car Accident?

Texas is a “fault” state, meaning that Texas law holds the at-fault party liable for compensating the injured party for their injuries and damages. Put simply, whoever causes the car wreck is responsible for paying all relevant damages. Determining liability in an auto accident can be very easy, but it can also be quite difficult. Evidence is the key for proving fault.

If an at-fault driver fails to admit their fault in the accident, which is highly likely especially when they are driving for a large company, it is necessary to get as many photographs as possible and to gather as many statements and witness interviews as possible and to provide them to insurance adjusters or authorities, or witness interviews. Everything will be used to make sure who was at-fault. The insurance companies have to review the evidence and determine who is responsible for causing the accident. If the at-fault driver’s insurance company denies liability and refuses responsibility, a lawsuit will be the only option for an injured accident victim to receive justice and receive the compensation they deserve.

The Features Of Income Inequality Drivers

This essay will deal with the drivers of income inequality across households within nations. It is vital to understand household income and what income inequality is before discussing the drivers behind the variations in earnings. This essay will give a brief outline on what income inequality is before taking a look at the influencing factors. The main drivers that will be examined are globalisation, taxation, labour markets and skill-biased technology. It will answer the question: can they create a vulnerability to Famine? The reality of the situation is that globalisation is leaving third world countries with low skilled workers vulnerable to deprivation. It will look at the clear links between multinational value chain activities and income inequality within and between nations. The links show how these global value chain activities are, because of governance, mainly controlled by groups of developed-world firms.

In order to discuss and evaluate the drivers of income inequality, we must first understand exactly what income is. For the purpose of this essay we will focus on household income. Household income is the collective money earned by each member of the household through means of work or benefits and returns on any asset owned by the household, for example investments. The model Y = f (L, H, K, I, T), where Y is value added, L is land, H is labour, K is capital, I is raw material and T is technology, can be used to express income in a mathematical formula. Income inequality is a common issue within and between nations. This is an extreme concentration of wealth or income in the hands of a small percentage of the population, often described as the gap between the richest and the rest of society (Kopp, 2019). For example, in the Unites States of America, the richest 1% of the population possessed 38.6% of the nation’s wealth in 2016 according to a Federal Reserve report, stated Kopp (2019). Figure 1.0 below shows the difference in the percentage of income in the United States between the top 1% and the bottom 50% of the population in the last 40 years. There are two mains theories of poverty; poverty is individual or poverty is structural. These theories are based on right-wing versus left-wing politics. To believe that poverty is individual is to believe that people experience poverty because they are lazy and uneducated. To believe that poverty is structural is to believe that people experience poverty because they get temporarily trapped in holes in the economic system.

Evidence indicates that globalisation and technology increase returns to human capital by showing that the ability to adapt to growing information technologies and expanding markets is not reflected in the premium for years in education like people would expect, but in the returns to observable qualities such as ability and adaptability (Stolk et al., 2011). When talking about labour markets affecting income inequality, there are two main categories to focus on; changes affecting supply and changes affecting demand. Stolk et al (2011) looks at trends in education that affect the supply, specifically how the source of education-related inequality is the growth of disparity within the education groups rather than across different education groups. When looking at the labour demand, some of the most prominent drivers of income inequality are globalisation, taxation, labour market institutions and technology. It has been shown that financial globalisation increases income inequality indicators. Stolk et al (2011) states that the financial globalisation driver in income equality stems from the fact that FDI is associated with investments in high-skilled and technology intensive sectors which leads to an increase in wages for those workers, which widens the income distribution.

While these drivers are responsible for income inequality, they can also be the solution to this worldwide problem. Trade globalisation reduces measured income inequality (Stolk et al., 2011). Low tariffs have been seen to reduce the variation of income, which benefit the disadvantaged in our society because the type of goods associated with these tariffs are bought by underprivileged people. It has also been demonstrated that better tax systems have been shown to have correlation with less inequality in post-tax incomes. When you look at the GDP-to-export ratio, the majority of this ratio can be related to agriculture, which is associated with the less wealthy population. Therefor an increase in this ratio has a decreasing effect on income inequality. To compress the widening income gap, trade unions introduced policies to reduce income inequality between high-skilled and low-skilled workers. Labour market institutions are a heavy factor with relation to income inequality. The centralisation of these labour markets by trade unions has seen a decrease in the variations of pay. Unions reduce income inequality by compressing wages so that the wage gap between skilled and unskilled workers is smaller than outside the union (Stolk et al., 2011). This gives low-skilled workers incentive to join these trade unions, however, it is harder to keep high-skilled workers in the unions when they can negotiate better pay outside it. Less productive workers benefitted more from a centralised system so in order to maintain membership unions had to take a more decentralised approach (Stolk et al., 2011). This defeated one of the main aims of the trade union, which was to minimise the pay gap between high-skilled and low-skilled workers.

This essay deals with the question: can these drivers create a vulnerability to famine? To answer this question, we must first have a clear grasp on what famine is. Famine occurs when there is a life-threatening lack of food. However, Devereux (2001) argues that food insecurity affects people who cannot access adequate food irrespective of food availability and that a famine can occur even if food supplies are adequate and markets are functioning. Basically, famine can affects those in lower social classes, because of the drivers of income inequality, rather than actual lack of food. In Poverty and Famines, Sen recalculates data from four famines to demonstrate adequate food availability and negligible decline from pre-famine food availability and exchange entitlement collapse for specific population groups as a proximate cause of famine (Devereux, 2001). Globalisation, while providing a range of opportunities, still holds a threat in society. A narrower purely market-orientated globalisation gained ground in the 1980’s benefitting those who were already economically strong but distributing the benefits extremely unevenly and aggravating the situation for many vulnerable people (Eide, 2008). Globalisation helps those already in a position of success. In most developing countries, the truly vulnerable groups do not have the strength to resist the pressures of market globalisation so they are nether protected against the harmful negative consequences arising from international trade on their established sources of livelihood, nor do they achieve the positive benefits that could have resulted for them had all trade barriers and subsides in developed countries been eliminated (Eide, 2008). Without the benefits of globalisation, these groups of people are being left behind and are the ones experiencing poverty. Their income becomes smaller and smaller until they are at the lower end of the pay gap. This leaves them vulnerable to famine. It is not the case of food being scarce or unavailable, but rather that they simply cannot afford to feed their families. If you look at the famines that have occurred in the last 20 years, the majority have occurred in third world countries such as Niger and South Sudan. Initiatives such as fair trade have been put in place to attempt to help close the gap on income, but until a solution is found to the negative effects of globalisation, not much will change.

There is a clear link between multinational value chain activities and income inequality within and between nations. Global value chains can often leave third world countries less well-off then first world countries. Understanding how these value chains operate is very important for developing-country firms and policy makers because the chains are structured has implications for newcomers (Gereffi & Kaplinsky, 2001). Many industries access value chains by interlinking with multiple other firms through networking. This can alienate new firms, mainly from the developing world, and leave them vulnerable to the negatives of globalisation, which have been outlined above. Governance is a central concept to value-chain analysis as the starting point for interest in global value chains is the fact that some firms directly or indirectly influence the organisation of global production (Gereffi & Kaplinsky, 2001). They take decisions that have important consequences for the access of developing country firms to international markets and the range of activities these firms undertake (Gereffi & Kaplinsky, 2001). The leading firms in these value chains manipulate the market to suit their needs so that they benefit, leaving third world countries with very little benefits. Because a lot of raw materials come from developing countries, for example cotton, the prices for the raw materials are very low. Farmers receive very little profit, which contributes to the income inequality seen worldwide. Not only are first world multinational companies receiving large profits from price mark-ups, but they exploit the providers of the raw materials and pay them very little. This creates the huge income inequality between nations. This is why the Fair Trade initiative is so popular. Its aim is to protect farmers and other workers from the developing world. However, the problem of income inequality because of global value chains is being slowly corrected. Countries are seeking workers in third world countries because it is cheaper to source labour there. Offshoring low skilled tasks leads to a productivity boost to this type of labour and therefore an increase in their wage reduces the gap between high and low skilled wages (Lopez Gonzalez et al., 2015).

I hope that this essay dealt with the drivers of income inequality, famine and the links between multinational value chain activities and income inequality in a clear and efficient way. It is important to note that, while most drivers have a negative of the distribution of income, there are some drivers that help to reduce this inequality. The main examples of this are trade globalisation and centralisation of the labour market. The beginning of this essay posed a question: can these drivers create a vulnerability to famine? The short answer to this question is yes. Third world countries are the most susceptible to famine and, unfortunately, developing countries are also the ones that receive most of the negative impacts of globalisation. This essay also showed how there is a clear link between multinational value chain activities and income inequality. This is mainly down to governance and lack of fair trade because of overcrowded markets. However, there have been improvements and a compression of this income gap, which sheds light on the future. Changes in the distribution of income are not only an important economic phenomenon but also a formidable social and political challenge ( Lopez Gonzalez et al., 2015).

Bibliography

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  2. Stolk, C., Hoorens, S., Brutscher, P., Hunt, P., Tsang, F., & Janta, B. (2011). ‘Examining income inequality in the EU’ In Life after Lisbon: Europe’s Challenges to Promote Labour Force Participation and Reduce Income Inequality (pp. 27-38). Available at: https://www.jstor.org/stable/pdf/10.7249/mg1068re.10.pdf?ab_segments=0%252Fdefault-2%252Fcontrol&refreqid=excelsior%3A5e2fb4222700e18971df461b367e1fe9.
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Classification Essay on Drivers

“STOP… stay in your lane”. When one is driving, this is a saying that comes out quite frequently, while driving near three kinds of drivers. Some of these drivers are worse than others, but all drivers are not perfect. The three main types of drivers are city drivers, old drivers, and new drivers. These three types are some of the reasons why drivers today are scary to be around. This brings individuals back to the point that all drivers are not perfect. The best driver out of these types is most likely the old driver. Yes, they are slow, but they are also very cautious and can only drive at certain times of the day. This leads to three types of drivers who mainly drive on the roads: urban drivers known as crazy drivers, old drivers or slow drivers, and new drivers who are also reckless individuals.

City drivers are extremely rough while they are driving. They can be broken down into separate categories. The first kind is weavers, those are drivers who will pass everything that is moving in front of them, no matter how fast or slow they are going. Then, there are crazy drivers, they are just reckless and do not check to see if there are any cars near them. Then, there are road rage drivers. These types of drivers are the worst to be stuck behind or in front of. The road rage will just progress as they drive, and eventually, they could cause a car accident. City drivers are one of the worst drivers to be near when an individual is driving. They have no care for the people around them whatsoever. When driving in the city, one does have to be confident enough to get through all the cars, but then when they hit the highway, they will destroy anyone in their path. This includes all old drivers that are near them while they are driving.

Old drivers are one of the safer drivers on the road. They are very cautious of their surroundings, but with that being said they tend to be over-cautious. The couple types of old drivers are those who are very slow or those who can only drive during the day, so they either cannot see well or cannot drive the car properly. Old people can drive safely, but sometimes they can be harmful to the cars around them because of how slow they tend to go. Old drivers will not speed up, they will just want the individual to pass them. This could lead to accidents, however, if someone behind them speeds up and then they hit their brakes, that can cause an accident to occur. Old drivers are very safe, but they do not make the best decisions while they are driving. This is the one downfall of old people that drive. They are very indecisive and cannot tell what it is that they want to do. Which in some ways connects to how new drivers react.

New drivers can be the ones that people need to look out for. Some of these individuals are just beginning to get on the road and do not know all rules to follow while driving. This can be scary to other drivers because they do not know what the driver in front of them is doing. New drivers are also the ones that tend to do whatever they want on the road because they do not know the difference between right and wrong. These types of drivers tend to go on their phones quite a lot and will drive too fast when they are not supposed to. The scary thing about new drivers is the level of awareness they have. They are new so they are not used to looking around them at all times to see if there are cars in their area or if they have to stop at certain points. New drivers are also the ones that tend to tailgate because they try to keep up with the other cars in front of them, which can lead to accidents and cause other drivers to have road rage.

All three of these types of drivers relate to one another. If there was a city driver behind an old person, then they will, most likely, pass the old person. The same thing however goes for a new driver: if he was behind that city driver, he would tend to follow the car in front of him because he is not used to the ways of the road yet. This could lead to an accident because city drivers will drive as they please. This leads to how these are the three main drivers on the road. City drivers are also known as crazy drivers, old drivers who everyone thinks are slow, and new drivers who are unpredictable and not aware. These drivers all show what it is like to be on the road today.

Drivers Of Environmental Leadership In Corporate Organizations

“Climate change is no longer a far-off problem; it is happening here, it is happening now” (Barack Obama). The world has finally woken up to address the disastrous consequences of mankind’s activities. Measures are being taken all around the world to reduce the impact of climate change and prevent further harm. Industries have played a key role in contributing to global warming along with many other sources. Majority of them have also voluntarily shouldered the responsibility of taking steps towards a sustainable future.

Environmental leadership can be defined as ‘‘the ability to influence individuals and mobilize organizations to realize a vision of long-term ecological sustainability’’ (Egri and Herman 2000, p. 2). The role of environmental leadership has gained prominence over the years due to increasing awareness about sustainable practices. The responsibilities of an environmental leader have been associated with the implementation of various environmental practices. The successful implementation of environmental practices presumes an active commitment from top managers (Kearins and Collins 2012; Revell and Blackburn 2007; Revell et al. 2010) without which it is impossible to carry out the humongous task.

This paper attempts to discuss the drivers of Environmental leadership and a few case studies in which organizations have been successful in being sustainable without impeding growth and development with the help of these drivers.

Purchasing and supply management sustainability: Drivers

This research paper attempts to identify the drivers to supply management’s implementation of sustainable purchasing practices and shows how these drivers are associated with different corporate initiatives. Purchasing and supply chain managers have the ability to establish and maintain a competitive advantage through environmental-friendly practices (EFP).

The drivers are listed as follows:

1. Involvement of top management.

Members of top management play a crucial part in encouraging firms to evaluate their role in society with and are responsible for the firms’ environmental management(Anderson and Bateman, 2000, Lawrence and Morell, 1995, Winn, 1995). They also set the rhythm of the company by determining the company values and hence, its actions.

2. Government regulation.

Recent studies have shown that escalating penalties, and legal costs have underlined the importance of complying with environmental legislation (Cordano, 1993). Preuss (2001) found the motivation for environmental initiatives in manufacturing companies to date, centers around regulatory compliance for the most part.

Firms tend to avoid expensive capital refit costs by trying to keep ahead of legislation. They conduct extensive research and implement new technology. This has proven to be more economical than reacting to the government’s changing compliance requirements.

Many companies proactively reduce their ecological footprint to establish their credibility with the aim of gaining a position at the negotiating table.

3. Financial cost benefits.

Waddock and Graves (1997) concluded that corporate social performance and profitability are significantly and positively related. This relationship can be associated with three motivations-

  • Competitiveness
  • Legitimization
  • Ecological responsibility that induce responsiveness from the customers.

Intensifying the production process has been the most used approach to reduce environmental impact while lowering the costs of input materials and waste disposal. More companies have shown an interest in lean manufacturing as it helps them reduce the direct costs associated with manufacturing along with producing in accordance with the demand(rather than in excess).

4. Competitive advantage.

An increasing number of firms are engaging in “green marketing” to gain or maintain a competitive advantage. Consumers are becoming aware of their ecological footprint and expect the products they use, to have minimum adverse effects on the environment.

Eco-efficiency, beyond compliance leadership, eco-branding, and environmental cost leadership are the strategies that can be used while determining optimum return on eco investments.

5. ISO certification.

The release of the ISO 14001 standard there has been an additional pressure on industries to address environmental performance through the use of environmental management systems (Zuckerman, 2000, Gordon, 2001). Though the whole process of implementation of ISO 14001 seems tiresome and unnecessary at the time, it has long lasting benefits to the environment and organization. Since the requirements of the ISO are greater than that of any state or federal agency, the organization will not have to change its policies and technology to comply with the ever-changing governmental regulations.

6. Customer demand.

Stakeholders have played a key role in making corporate organizations more responsible towards the environment. Customers, local communities, and environmental interest groups have held companies accountable with regard to environmental impacts of their operations. Hence, organizations are more conscious about including Environment in their decision-making process. (Giunipero, Hooker, Denslow, 2002).

CASE STUDIES

1. Going Green: Motivations for Environmental Commitment in the Airline Industry. A Case Study of Scandinavian Airlines.

Air travel is known to be one of the fastest growing, most dynamic and volatile sectors in tourism. It is associated with excessive fuel consumption, noise pollution and waste production which are known to have significant impacts on the environment.(Air Transport Action Group, 2002; Becken, 2002;Clancy, 2001; Middleton & Hawkins, 1999; Penner et al., 1999).This paper focuses on the drivers, motives and factors that affect environmental policy making in the Airline industry.

Recent studies have shown that, no single agency or actor has complete knowledge of the issues and alternative solutions or can predict with certainty what the implications of certain policies might be. The most effective practices can be determined only by trial and error method. There is no panacea for all the environmental problems. The solutions have to be adopted based on the nature of the problem, the drivers and other external conditions.

Scandinavians consider the environment as an important aspect of their culture and therefore, try to maintain and preserve their environment. They also keep themselves updated about the environmental issues (personal communication, Director, Corporate Purchasing, SAS, 11 June 2002).

Scandinavian Airlines (SAS) is the largest airline in Scandinavia and has its base in Stockholm as well. In 1995, SAS became one of the first airlines to publish an Environmental Report. It has won numerous awards for its annual environmental reports (SAS, 1996, 2001, 2002) and is emerging as a leader in environmental management (Diamantis, 1999; personal communication, Environmental Manager, LSG Sky Chef, 30 June 2002). In 2002, the airlines brought into effect an environmental management system which consisted of various tools and mechanisms to evaluate, report and rectify environmental performances. Some of them are listed below:

  • Annual public environmental reporting
  • Adopted an environmental index that was used to determine the efficiency of implementing various environmental measures.
  • Enforced a corporate environment policy obligating all managers to conduct an environmental assessment as part of their decision-making documentation (SAS, 1998).
  • An emissions calculator that provides a destination specific calculation of CO2 generated.
  • Supporting product stewardship programmes
  • Require all suppliers to have appropriate environmental policies and management systems in place (personal communication, Vice-President Corporate Purchasing,SAS, 11 June 2002);
  • Reducing its costs by employing energy and water saving techniques such as improving fuel efficiency and decreasing the amount of waste going to landfill (Lynes & Dredge, 2006).

2. IBM Supply Chain.

Founded in 1911 and one of the largest global tech companies, IBM has been a pioneer in corporate responsibility for over four decades, publishing its first Corporate Environmental Policy in 1971 and subsequent annual corporate environmental performance reports since 1990.

In 2004, IBM helped found the Electronic Industry Citizenship Coalition, now called the Responsible Business Alliance, to extend the commitments of individual companies to environmental and social responsibility leadership across the electronics industry’s suppliers by establishing an industry-wide Code of Conduct.

In 2010, IBM expanded its supply chain environmental management program to require all suppliers to establish a management system that addresses their social and environmental responsibilities.

Suppliers are required to establish goals, measure their environmental performance, and publicly disclose their performance against those goals.

IBM uses the RBA’s Supplier Code of Conduct in its supplier selection process. Suppliers are required to sign a legal document agreeing to comply with the RBA Code of Conduct. They undergo an initial audit and, if not compliant, are given 6 months to carry out corrective actions such that upon a re-audit they are expected to be compliant. Noncompliance may lead to a business being removed. IBM facilitates capability building among suppliers by working closely with them.

3. Ford

Ford’s supply chain is one of the largest among auto manufacturers and it largely influences its environmental and social impacts and values. Ford’s Code of Conduct Handbook asked suppliers to adopt the same environmental and sustainability policies as those Ford applied to its own operations.

Ford adopted three frameworks:

Carbon Disclosure Project’s Supply Chain Program;

its own Partnership for A Cleaner Environment (PACE) Program; and

the Responsible Business Alliance’s (RBA) third-party,

To determine whether a supplier has a large environmental footprint, Ford examines its GHG and water intensity as well as the facilities’ location. This is important for water-stressed regions.

Ford often faces challenges with engaging indirect suppliers in meaningful environmental and social initiatives and in reporting on these efforts. Therefore, it requests that its suppliers report through the CDP’s Supply Chain program. Doing so helped Ford set a uniform reporting framework that suppliers could use to provide environmental performance information and allows Ford to determine more accurately how each supplier contributes to its environmental impact. This information was also made available to customers to improve credibility and goodwill.

CONCLUSION

For any organization (private or public) to thrive, environmental considerations are crucial. The short-term benefits may not be significant, but the sustainable growth in the long-term is worth the setbacks. Leaders have to acknowledge this reality and encourage the employees and the top management to persevere. Not engaging in sustainable practices could result in the loss of a longer competitive advantage. Both individual and organizational environmental leaders will have to take upon themselves the responsibility of educating and encouraging their employees to advance their efforts towards creating a sustainable environment. (Brown, 2019)

REFERENCES

  1. Giunipero, L. C., Hooker, R. E., & Denslow, D. (2012). Purchasing and supply management sustainability: Drivers and barriers. Journal of Purchasing and Supply Management, 18(4), 258-269.
  2. Lynes, J. K., & Dredge, D. (2006). Going green: Motivations for environmental commitment in the airline industry. A case study of Scandinavian Airlines. Journal of sustainable tourism, 14(2), 116-138.
  3. Egri, Carolyn P., and Susan Herman. ‘Leadership in the North American environmental sector: Values, leadership styles, and contexts of environmental leaders and their organizations.’ Academy of Management journal 43.4 (2000): 571-604.
  4. Presentation on Introduction to Environmental Leadership by Albert Brown at Arizona State University, August 22, 2019.
  5. https://www.epa.gov/sites/production/files/2018-10/documents/ibm_case_study_draft_10012018_ibmeditsincorporated_epafinaledit_compliant.pdf
  6. Remarks by the President at the GLACIER Conference — Anchorage, AK. (n.d.). Retrieved from https://obamawhitehouse.archives.gov/the-press-office/2015/09/01/remarks-president-glacier-conference-anchorage-ak.
  7. Purdue Writing Lab. (n.d.). APA Changes 6th Edition // Purdue Writing Lab. Retrieved December 2,2019, from https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_guide/apa_changes_6th_edition.html.

The Impact Of Supply Chain Drivers On Organizational Performance

According to the United States government which is cited by (Marc Levinson, 2017) in the congressional research service manufacturing sector defined as ‘’comprises establishments engaged in the mechanical, physical, or chemical transformation of material, substances, or components into new products.’’ However, manufacturing firms have faced numerous difficulties. According to Tekeba Eshetie (2018) in the study of Ethiopia’s manufacturing industry opportunities, challenges, and way forward; manufacturing firms have faced various challenges such as weak supply chain integration, Limited research on manufacturing industries, competitiveness, and others. According to Sunil and Chopra (2007) manufacturing firms have faced the problem of efficiency and responsiveness. According to S. M. Sohel Rana et al., (2016) supply chain drivers were the basic determinant of efficiency and responsiveness. Sunil Chopra and Meindl (2007) stated in their book about six drivers of supply chain performance; a company can enhance its responsiveness and efficiency by the good management of six drivers of supply chain performance.

Some studies were conducted abroad related to the impact of supply chain drivers on organizational performance. However, it is not strictly directed with the researcher study; the impact of supply chain drivers on organizational performance in the case of some selected large manufacturing companies. For instance, Impact of Supply Chain Drivers on Retail Supply Chain Performance (S. M. Sohel Rana, and Abdullah Bin Osman, 2018). In their study, the researchers include five variables such as supplier, inventory management, information technology, transportation, and coordination. The findings generated from the empirical data revealed that all the supply chain drivers had a significant effect on retail supply chain performance. Drivers of Supply Chain Performance Enhancing Organizational Output the case of the manufacturing sector (Kashif Mahmood, 2013).

He concluded that there were six drivers of supply chain performance in the literature that need to be managed to enhance organizational performance. These drivers were; Facilities, Inventory, Transportation, Information, Sourcing, and pricing. These drivers were closely related to each other and have a greater positive impact on organizational performance. Companies need to find a situation where both efficiency and responsiveness in supply chain practices are at an average level to increase their performance. Therefore, a firm’s performance can be achieved through better management of supply chain drivers. Mohammad A. (2013) studied the impact of supply chain performance drivers and value chain on companies: the case of the food industry in Jordan.

Mohammad A. (2013) concluded the food processing industry which is found in Jordan depends on the performance of supply chain drivers. Mohammed Mojahid Hossain Chowdhury et al., (2019) tried to assess drivers of supply chain performance analysis in the hospitality and tourism industry. The study concluded that supply chain drivers were basic to create a competitive advantage in the hospitality and tourism industry.

Are Uber Drivers Employees?

The Case & Who is at Stake

In 2008, Uber was created by Travis Kalanick and Garrett Camp on a snowy night in Paris, which became one of the most popular ride-sharing apps of the twenty-first century (Bales, 2017). Uber gave people the chance to be their own boss whenever they want, but it also gave drivers harm as they were unable to receive the benefits and protection under the state and federal law. This was the issue the case “Are Uber drivers employees? ”discussed.

In this case, the stakeholders are drivers, Uber, and the court. The Uber drivers wants to have benefits as legal employees and do not want to be treated as independent contractors, yet they feel that most of the decisions are being made by Uber. If court rulings indicate that Uber drivers are employees, the company will be subject to pay Canada Pension Plan, employees’ compensation premiums and insurance expenses. Overall, if such a ruling is concerned, it will make it challenging for Uber to use its current business model that is based on low prices for customers (Owram, 2017).

However, Since the mid-nineteenth century, court has a “control test” to determine a worker should be classified as an employee or independent contractor. Unfortunately, the federal government does not have a statutory scheme distinguishing employees from independent contractors, so many states and agencies are using their own version of the control test. Therefore, it led to indeterminate results in different states across the country, even the different countries (Bales, 2017).

Human Resource Implications

In Canada, the legislation that comes to play can be found under the Canada Revenue Agency. It includes the degree of control that Uber and the drivers have in the business. If Uber has lots of control, then the drivers can be classified as employees by Canadian law. However, Uber claims that it exercises very little control over its drivers. They can accept or decline rides, they can choose to work or not and they work without supervision. The only requirement is that the driver reviews remain above the set standard. But, there are some drivers arguing that Uber’s algorithm exerts far too much control over their lives to be viewed otherwise (Hawkins, 2018). In addition, when an individual has the freedom to work on their own terms, they can be classified as an independent contractor under the Canadian law.

Canadian law also considers the owner of the tools used in production. When the worker also owns the tools, they fall under contractor status. In this case, the drivers come with their own cars and phones. Uber only provides the app and the clientele.

Canadian law points out that in a contractor relationship, the worker may financially profit or lose depending on the nature of the work or industry. In this case, the workers fall in a state of contraction. The drivers are never guaranteed on the number of rides they will have or the amount of profit they will earn. The company takes responsibility for compensating unsatisfied customers.

The law also takes into account the importance of the worker to the business. In this case, the drivers are very critical to Uber as without them the company cannot earn any money. Uber disputes and claims that the app is the most important aspect and not the drivers. Taking this into consideration, the workers fall under employee status (CBC News, 2019). Contractor status is further applied because the drivers are free to hire other drivers to do the work for them. Although many do not do that, the flexibility of the company further shows that they have created a contractual relationship with the drivers (Munroe & Howard, 2017).

Nowadays, according to CBJ News in 2019, a landmark ruling in the U.S. by the California Labour Commission, Uber is an employee, not a contractor due to the ruling which determines that Uber is “involved in every aspect of the operation”, which is the latest in a host of legal and regulatory challenges facing Uber in the United States and other countries, including Canada. Although Uber is still portraying that they are just a neutral technology platform, the Labor Commission says Uber controls virtually all the tools drivers use and monitor their approval ratings. Additionally, if a driver’s rating falls below 4.6 stars, Uber can discontinue work with the driver.

Strategic Management

Uber and the drivers can use a third party to mediate the case, which can be completed by using a national agency to help bring the two sides to the agreement. Mediation can help bring amicable solutions, rather than going to court. When drivers are considered as employees in Uber, Uber need to pay about forthy billion currently (CBJ News, 2019). If Uber does not want this happens, they need to negotiate with drivers and give some benefits to them, such as paying for drivers’ car insurance since it is the most important aspect on the driver’s side.

Strategic human resource management entails the recruitment, deployment, motivation, retention and engagement of employees. To achieve that, a company has to take into consideration the external market, corporate culture, the business strategy, competitive advantage and corporate culture (Schwind, Wagar, Uggerslev, Fassina & Bulmash, 2016). In this case, Uber has to consider the fact that its entire business strategy is centred about the affordable services to customers. That means if it has to pay lots of premiums to drivers in terms of benefits and insurance, it will not be able to expand to new markets. The company should obey the law (Schwind, Uggerslev, Wagar, Fassina & Bulmash, 2016) and explain that to its drivers in the process of negotiation. At the same time, the company highly relies on drivers to offer its services, thus, it must be willing to give up something to make the drivers happy. It can give them higher percentages to cover insurance expenses. In a mediation, having a two-sided perspective will help the company resolve the issue.