Shyp to Reclassify its Couriers as Employees
Lonnie Giamela was quoted in LA Times on July 1, 2015. The article “Shyp to Reclassify its Couriers as Employees” discussed Shyp's recent announcement to reclassify its couriers – all of whom are independent contractors – as employees, pulling itself out of the worker classification gray area in which companies like Uber and Lyft find themselves.
Lonnie was quoted on his take of the announcement.
While worker reclassification has been painted as an arduous task that could turn the on-demand economy on its head, Lonnie said it is much easier for smaller, newer companies like Shyp and Instacart to transition, and it’s best that they transition early on rather than later.
“It’s much easier from an operational standpoint to make the decision of whether they’re going to classify these individuals as independent contractors to employees, because if they hit it big, it’s going to be much more difficult to switch,” Lonnie said. “That’s the challenge Uber is facing right now."
To read the full article, please visit LA Times.