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808 Posts
Hypothetically if Uber went to court and lost and was declared an employer would you stay on as a driver or find other work?
And this is a huge problem for Uber, what would Uber even look like if this happened, more importantly, would Uber even exist anymore? Could Uber, even with its vast resources, handle becoming the Worlds largest taxi company?If they are declared an employer would you not have to be paid on a W2 not 1099?
I don't see how their model could work with drivers as employees.
I don't think a lot would change actually, your taxes would just be taken out before you got paid, from the driver's point of view it would just mean less money for the same amount of work. Uber on the other hand would have a huge burden administratively managing taxes and benefits for that many employees.If they are declared an employer would you not have to be paid on a W2 not 1099?
I don't see how their model could work with drivers as employees.
Firstly most taxi drivers are 1099 and less oversight. Uber made their bed and now most lie in it. Drivers and pax were happy a sustainable rates.And this is a huge problem for Uber, what would Uber even look like if this happened, more importantly, would Uber even exist anymore? Could Uber, even with its vast resources, handle becoming the Worlds largest taxi company?
It isn't less money it's just less money upfront. Easier tax process for sure though.I don't think a lot would change actually, your taxes would just be taken out before you got paid, from the driver's point of view it would just mean less money for the same amount of work. Uber on the other hand would have a huge burden administratively managing taxes and benefits for that many employees.
My weekly paycheck drops it sure feels like less money to me. Sure, I won't have to pay later, but my $0.54/mile usually eliminates that burden anyway.It isn't less money it's just less money upfront. Easier tax process for sure though.
Just the damn hiring process would be incredible. Depending on the state, you have E Verify, W 4's, State income Tax, mandatory drug testing per worker's comp, child support data base checks, fingerprinting, proper criminal background checks, DOT medical physicals, proper licensing and probably the most important, Uber now becomes more liable with having an employee rather than just an IC. Uber would be held responsible for the proper upkeep of all vehicles, responsible for the actions of all drivers whether legal or not, the responsibility to make sure are vehicles are properly insured to state mandated commercial requirements. So to put it another way, Uber's rates would have to increase to that more of a taxi. Probably around $3.00 a mile.I don't think a lot would change actually, your taxes would just be taken out before you got paid, from the driver's point of view it would just mean less money for the same amount of work. Uber on the other hand would have a huge burden administratively managing taxes and benefits for that many employees.
I think the definition of a business model working is that the business makes money, and they make lots of it. They are easily the national leader in ridesharing and probably the world. If you want to make real money, wait for them to go public and buy stock.Their model doesn't even work with drivers as IC's.