involved in a ride-sharing application start-up similar to Uber and Lyft
called Ryde. At Ryde, drivers use their own personal cars, but the
drivers must consent to Ryde having the Ryde logo painted professionally
on their cars. Outside of that, there are not many Ryde policies that
govern the use, year, make or model of the car except a yearly
inspection by a mechanic. Ryde drivers are paid on a per ride basis.
While Ryde drivers have no set schedule, they must log at least 10 hours
per week or they will be terminated from the application. The Ryde
application gives drivers specific routes that they must follow. If the
driver fails to adhere to the route three different times, then they
are denied access to the application for a period of one week. Ryde has
chosen to classify its drivers as independent contractors. Lately, you
have seen many news clips and articles about the controversies
surrounding Uber, Lyft and even FedEx regarding the classification of
their drivers as independent contractors. You even noticed that there
have been a couple of court cases on the issue, and the outcomes were
not in favor of the companies. You are concerned that Ryde or others
may raise similar legal concerns over its classification of the drivers
as independent contractors. You decide to conduct some more research
into the issue to determine if Ryde should consider treating drivers as
employees to avoid potential litigation.
1. Why might companies
like Uber, Lyft, FedEx and Ryde want to classify their drivers as
independent contractor agents instead of employee agents? Cite to at least 1 source to support your answer. The source can be from news articles, scholarly articles or even court cases related to this issue.
2. How did the courts in the Uber and FedEx cases rule and why?
Cite to at least 2 resources to support your response. They can be
from news articles, scholarly articles or even the orders issued in the
3. Based on what you have
learned so far about Agency Law, the ramifications of
miss-classification of drivers and recent court rulings, how do you
think Ryde should classify its drivers and why?
4. What process
did you use in finding sources for questions one and two? Be specific.
Which search engine or databases did you use? What was your “research
5. Why did you choose to use the sources that you chose for questions one and two?