Breaking news today guys, California judge has just ordered put the hand down on Uber and lift to reclassify their drivers as employees. And this is major, major news because it has lasting impact as a consumer who's receiving all the goods, whether you're be hailing a ride or you're ordering food from Uber Eats or postmates. It is directly impacting you as a consumer. On the other hand, if you are a restaurant here, it is directly impacting you as well if these gig workers are turned into employees. So make sure you guys keep watching until the end as I unravel all the different points for you and to see how it actually impacts you. Hey guys, this Wilson here, your friend in helping you build a profitable restaurant. Just want to give a major shout out to these two individuals as they're showing us so much love. It's a community that I want to be able to create for us. So make sure that you guys leave us a positive comment in the comment section below so in that way I can have a chance to feature you. Now without further ado, let's dive right in. The new law that is imposed today from the California judge is telling Uber and lift and all these different companies that employ gig workers and telling them to reclassify these gig workers into long term employees. Now why is that the case? It is because of COVID-19. It is because of the outcry from these gig workers that are not being protected and that's the reason why it really pushed the conversation through to tell them that, hey, you know what? We want to be counted as one of them as well. We want to count it as one of the employees. Now that would make sense from the outside looking into these companies. What would happen internally? What are the impacts that would have for these companies? Let's follow this graph a little bit further. If Uber, lift, postmates and door dash has to reclassify their gig workers into long term employees, that means they would now have to pay for their sick leave, unemployment insurances, workers' comp and health insurance. And that means that they have to fork out a ton of money in order for them to actually change them from a gig worker into an employee. But if there are the down times, what are if there are the time, the weird hours that no one wants to work, then they would have to pay for double the time, overtime and etc. That means that for these companies, the cost of running them are much, much higher. And if you don't already know, these companies are losing billions of dollars every single year. Definitely check out this video as I break down how much they're actually making and the economy behind how Uber eats would work. Now you might think and you might have a lot of empathy for these gig workers saying that hey, no, what they're not protected. Now that they are changed from a gig worker into someone that has benefits, then everyone's happy. Well, unfortunately, that is not the case. Why is that the case? It is because if the cost of operating these companies go up, what does that mean to us as consumers and customers of these services? That means our costs would go up as well. Are we going to be happy? No, we're not going to be happy because our costs went up. How about for restaurant tiers? The restaurant tiers that are crying about the 20, 30% commission that these third party apps are charging. Well, unfortunately, the prices and the commission that these companies have to charge would need to offset the employment insurance. And that's the reason why the percentage and commission would go up as well. If you want to understand a little bit more about third party apps and what they charge, definitely check out this video right here. So restaurant tiers are not going to be happy, guys. And as a result of this whole flywheel and this whole spiral downwards, the gig workers initially that were benefiting from the sick leave, from the unemployment, from the health insurance, they're not going to be happy. Why is that the case? Because the jobs would go down. Are the jobs going down? It is because Uber already announced that if California is imposing this law and if their appeal does not work, they will really consider leaving California's state and operations there. And that means that less jobs for gig workers and all in all, it just creates this negative turn and spiral downwards if this law does impose. And for me, I really, really highly think that this law does not do the economy any good. The inefficiency within the system would continue to rise and thus no one truly benefits. So you might be thinking, well, how come there's nothing that makes this whole gig economy sustainable? If the new law is imposed, no one's going to be happy. If there are no laws, then the gig workers are not being supported by sick leaves, benefits, replacement and their income, how can we sustain this whole gig economy? And this is exactly where Cover comes in. Cover is a subscription company that is aiming to make gig economy sustainable. How did they do that? They have this subscription model that allows your income to be replaced. If you're a gig worker and if you are in a collision, they're going to be able to replace your income of up to 80%. Same thing, if you're hospitalized, they're going to be able to replace your income to up to 80%. And all the amount really depends on the subscription model that you subscribe for. And the subscription model goes as little as only $7 a month. So if you ask me, I really think that having the new law is definitely detrimental to this whole economy, whereas we need to innovate, whereas we need to have different companies out there offering different services that allows this whole ecosystem to be sustainable. So I really hope that you guys enjoyed this video. I'll definitely keep you guys up to date as to the next step that is happening. If you guys enjoyed this video, make sure you guys smash the like button. And if you guys want one month free of subscription for Cover, definitely go into the description below and we're going to be able to partner with them to give you your first subscription for free. Until next video, I'll see you guys soon.