Thinking of drving for Uber, Lyft or GrubHub?

[Martinjmpr]

Every type of independent contractor type of gig is exactly like this with respect to insurance. Hire independent contractors and they are responsible for providing their own workers comp and GL.

I agree but the difference is that Joe Schmoe who wants to open an independent contracting business already knows that, and will adjust his prices to account for all of that to include equipment depreciation, insurance, etc.

Sally Smith who just wants to make a few bucks while her kids are at school (Which is EXACTLY who Uber advertises to on their commercials) - does SHE know that? I seriously doubt it.

Furthermore, if I understand correctly, rates are set by Uber, not by the driver. IOW the Uber/Lyft driver gets paid a set amount based on whatever demand is at that time.

He/she doesn't have the option of saying "I'll charge you this much to drive, plus this much surcharge to cover my insurance, plus this much to cover my depreciation, etc."

As an Uber/Lyft driver you have two options when a ride comes up: 1. take it (at whatever the going rate is) or 2. Leave it.

What you said about a pyramid scheme is correct, but I don't see it ending any time soon. There will always be new blood entering the work force, and you can still make good money as the independent guy.

I wonder how many Uber or Lyft drivers are actually making 'good money' by the time you factor in (a) fuel, oil, tires, and maintenance (b) depreciation on their vehicle (c) the time and effort they have to put in to keep the vehicle presentable (which is non-compensated) and (d) their actual earnings after subtracting self-employment tax, FICO, Medicare, etc. (not to mention the time to do all that paperwork - which is also uncompensated.)

As I said above, a building contractor, plumber, electrician, etc can adjust his rates to account for all those costs but AFAIK an Uber, Lyft or Grubhub driver doesn't have that option.