It's a "bad thing" because there are benefits to being employed with a company that treats you like an employee, which you are not going to get when you're fire

It's a "bad thing" because there are benefits to being employed with a company that treats you like an employee, which you are not going to get when you're fired and told to go work for Instacart as a contractor if you want to keep getting paid. This is a bad thing for the employee who no longer has their job.