An Uberdilemma: Employees and Independent Contractors in the Sharing Economy

Grant E. Brown

The sharing economy is a growing industry brought on by the omnipresence of the internet. With the click of a mouse, or the tap of a finger, one can quickly offer or gain access to assets or services online. Therefore, one of the distinguishing features of the sharing economy is the ease of accessibility for producers and consumers.

Uber Technologies, Inc. (“Uber”) is one of most successful players in the sharing economy. Anyone with a car and some spare time to drive has the option of offering his or herself through Uber as a transportation resource to someone who wants a ride; Uber provides a medium (a mobile app) through which these two parties can connect. On the surface, Uber drivers function like traditional taxi drivers. One major difference, however, is that while traditional taxi drivers are generally considered to be employees, Uber asserts that its drivers are independent contractors.

The distinction between employees and independent contractors is important for both Uber and its drivers because employees are entitled to more statutory rights and protections than independent contractors. Uber already faces mounting litigation from its drivers challenging their independent contractor classifications. With the growth of the sharing economy, it is likely that litigation of this type will continue (if not increase) for Uber and for other service providers with similar employment arrangements. This contentious issue is, therefore, ripe for resolution.