That's right - one thing I would add that is actually very non-negligible for on-demand logistics are (1) reimbursement for mileage (2) more robust insurance po

That's right - one thing I would add that is actually very non-negligible for on-demand logistics are (1) reimbursement for mileage (2) more robust insurance policies. IRS calls for $0.56/mile - if you assume an average delivery in SF is around 2 miles, that throws an additional $1+ per delivery cost to the business. For insurance, I know that Lyft currently charges about $1.50 for a "safety fee" which I would assume covers their insurances. However, those insurance policies are still built on the gray contractor status and probably depend to a certain extent on driver's having personal insurance (which is a fraught relationship - most personal insurance has a commercial use exception, which means driving for work is not covered). I would assume that when they re-classify, the insurance providers will use it as an excuse to push premiums up. There's also a chance that the clarify will bring premiums down (volatility = risk, and the current classification is highly volatile), so that may be a possibility as well. Most likely though, you give an insurance company a reason to charge more and they'll take it =)