The ultimate issue here for Lyft, Uber and such is not contractors vs employees but the amount of subsidy these companies need to give to get people to buy thei

The ultimate issue here for Lyft, Uber and such is not contractors vs employees but the amount of subsidy these companies need to give to get people to buy their product. Making people employees is only a big issue for these companies because it further increases the subsidy required to get people to buy. There’s an old saying that’s its easy to grow fast if you’re selling $2 bills for $1 and the Uber, Lyft, (and WeWorks) and such of the world are simply following that model. The market is finally smelling the BS on this strategy for long established “startups.” If such companies don’t have a viable path to profitability then the whole 1099 vs W-2 argument is moot.