You&#x27;ve understood the criterion incorrectly and it&#x27;s not circular logic. The tests provided by the IRS determine whether the <i>current</i> business relationship between a person and a company is one of contracting or employment. To evaluate the test you simply examine the criteria as the relationship stands.<p>So for this test: do Uber drivers pay their expenses, have they made their own investment in the infrastructure they use? If they do, it suggests they are contractors, and if not, it supports them being employees.<p>Yes, if drivers were employees then it would be unusual for them to bring and operate their own vehicle in the context of their employer&#x27;s business, and pay for its expenses. Employees don&#x27;t tend to do that, because the company owns the infrastructure and pays directly. Uber grew quickly because it tapped into this big pre existing network of private black car drivers who were small business owners and needed a good dispatching system. So it brought all those drivers on as contractors.