Independent Contractor

Uber and Lyft say that drivers are independent contractors.  That terminology gets thrown around a lot but what does it really mean?  Here's some basic info and then some ways to help you build on your independent contractor status.

The Fair Labor Standards act provides the criteria to determine whether or not someone is truly an "employee" or merely an independent, freelance worker.  Some of the considerations include:

• The worker (driver) must supply his / her own tools, materials and equipment.  In this case we drive our own cars, we supply any amenities or extras for the passengers and we use our own phones.
  
  
• Can the worker (driver) be discharged (terminated / fired) at any time? We know that Uber can deactivate (fire) us for reasons they deem relevant, not the least of which is a low overall rating from passengers.
  
  
• Who controls the hours of employment?  Clearly in the case of any rideshare driver, the driver determines when they do / do not want to work.  Or do they? When you need to make a certain amount of money every week you are more or less required to work during peak times.
  
  
• Is the work temporary or permanent?  That's an interesting qualification because for some people driving for Uber and Lyft is just a temporary means to an end. For others it is most definitely a permanent job for whatever reason.

So reading through the points above you can probably see where the famous lawsuit in California had valid areas that raised the question of whether or not drivers are independent.

What if you embrace the "independent contractor" status?  In that case you are self-employed.  And self-employed individuals do things a bit differently than those employed by another company. Some of the differences:

• You agree to provide services for an individual or company for an agreed upon fee.  In the case of Uber, you agree to their rates in their terms of service and various addendums.   Tips are a consideration by the passenger you are connected with and have nothing to do with the agreement you have with Uber.
  
  
• You are responsible for your own state and federal taxes so you'll need to keep track of all your expenses. Everything from car payment to gas and any amenities you offer in your car or business cards to spread the word. It's all an expense that is tax deductible because you're self employed.
  
  
• You're not protected from any workplace hazards as you would be if you were employed by a company.  You'll need to be sure you have plenty of insurance and stay out of hazardous situations.  You're in charge of your own safety! Take that point seriously.
  
  
• Just like in any business you might run, you're directly responsible for the satisfaction of your customer (passenger).  The fact that you're unhappy with the arrangement you have with the rideshare company cannot come out when you're working with the customer. The customer can determine whether or not you continue to get work.  And while the customer is not always right (we see that over and over again) they are always the customer.
  
  
• You're also responsible for building your business.  Only 16% of the population even knows that rideshare exists.  Only half of those people have ever used a rideshare service.
  
  In many cities where rideshare is available drivers will operate on more than one platform (Uber & Lyft, Wingz, GetMe, Postmates and etc). The smart drivers know that different customers have different rideshare preferences so they have several ways to stay busy with the different options.
  
  You can also build your business by letting people know you drive for Uber etc.  Buy business cards, create a brand for your business, create relationships with your passengers so they will ask for you again.  Some drivers give out personal phone numbers.  I use an app called Uzurv to have my passengers set up a reservation for me to pick them up personally.
  
  
• People who are self employed also find opportunities to connect with others in their fields.  Facebook is a great place to start finding that sense of community.  And it's a great place to network.  I've been able to pick up several passengers because of driver referrals.  We also have a local meetup (check on MeetUp.com) - ask around and see if you have a place where drivers gather locally to connect.  It does wonders for helping through tough days.  And there are tough days when you're self-employed.
  

Bottom line:  Don't wait for Uber, Lyft or any other rideshare company to start taking care of you and your business.  This is on you.  Get out there and work it, find the resources to boost your business and surround yourself with people who will be a positive and encouraging to help lift you up.  Success is in your hands.