Portion of payroll taxes is ~7.5%, plus an extra 2.5-10% for workers comp&#x2F;etc depending on your rates.<p>If they had to reclass as employees, they would just raise prices to end consumer 10-20% to compensate (or fund it via other&#x27;s money like they&#x27;re doing now to price out rest of market).<p>They&#x27;d also put a cap on hours per week so drivers couldn&#x27;t drive more than 30 hours per week. Companies aren&#x27;t legally required to give benefits to part-time workers (up to 30 hours).<p>The big draw of independent contractors is that you&#x27;ve just converted labor from a fixed cost to a variable cost. There are tons of Uber&#x2F;Lyft drivers (namely, anyone not doing it full-time, which is the majority of drivers) who prefer this since they can drive as much or as little as they want.