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> where are the individual owns the car You're right -- the city required that taxi cars had medallions to be allowed to pick up passengers, and the one who owned the medallions on cars there was the owner. With a medallioned car you could pick people up in front of bars, night clubs, off a random street corner, etc. I don't, however see it as any different from an LLC. At the end of the day the taxi drivers worked directly for themselves, had their own clients, optimized for themselves on finding places to get hailed customers. At least the one I talked to about money stuff had their own CPA, if they filed as self-employed or formed an LLC/C-Corp/S-Corp, I don't know. They were paid by people they picked up, directly, rather than the taxi company. They had a B2B relationship with the taxi stand, they rented a car with a medallion rather than go through the process and cost of buying one, they earned money directly from the people they picked up, making themselves a B2C. And if you bought a medallion, you didn't need to rent the car from the taxi stand, so you could do it totally yourself and cut them out. You gain maintaining the car, the capital expense of the medallion. |
I think this is the better model minus the medallions.
Uber should simply act as a dispatching service, and get a commission for connecting customers to drivers.
Im sure some people will still claim the are expliting the driver LLCs, but at least they wont have to deal with the headache of the contractor/employee debate.
I think in most states a B2B relationship is solid defense against claims that someone is a misclassified employee.