The ride-hailing companies are seeking to resolve lawsuits by drivers who contend they should be deemed employees and therefore entitled to reimbursement for expenses, including gasoline and vehicle maintenance. Drivers currently pay those costs themselves.
I’ll be honest, I don’t know how I feel about this one.
Either way, the drivers will pay those costs themselves. If you think that Uber will pay for expenses, and the driver’s take will remain the same, you’re grossly mistaken.
It’s tricky, but a lot of companies hire people as contractors just so they do not have to pay all those other expenses. As a contractor many times myself, I have to cover expenses as well as self-employment tax. If Uber or Lyft provide any equipment at all, then they have to claim the workers as employees. Otherwise, the companies are probably legally fine as they are, even if some may not like it. Been done that way for ages.