Uber has become the champion of 'on-demand' companies who require employees to work as an independent contractor. But with the ongoing litigation in various countries, how long will they be able to operate under this structure? How does this work in theory and affect the customer experience?
I said there’s a good chance that one day there could be a change in how the law qualifies these contractor jobs - and I’d rather be taking the high road from Day 1 and not be subject to that business risk,” said Johnson, the executive who founded Apple’s retail division and later ran J.C. Penney. The risk of relying on independent contractors became more salient with the revelation that the California Labor Commission recently ruled that an Uber driver should be classified as an employee, not a contractor. While the ruling does not set a binding precedent, it may push some in Silicon Valley to look for alternatives to the contractor model. Johnson’s company is among a handful of app-based outfits that suggest there may be another way.