Operations

Uber Not Driving Real Job Creation As It Claims

Posted on April 17, 2015

When Uber talks about economic impact and putting people to work, it isn’t actually talking about traditional employees.

Uber and its main competitor, Lyft, are each headed to trials that weigh the very question of whether their drivers are independent contractors or employees. If Uber drivers are suddenly found to be employees — and if Uber, a company now operating in 300 cities and valued at more than $40 billion, were forced to fund drivers’ benefits and pay back their expenses — it could devastate the company’s entire business model as well as the broader “sharing economy” model of contractor-reliant service platforms. To put it another way: In the courtroom, Uber is a lot less likely to use the J-word.

Slate article here

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