How a Florida fender-bender could threaten Uber’s business model
A March collision between a Mitsubishi Outlander and a scooter in the Miami area could have huge repercussions in Silicon Valley. According to reports in Buzzfeed and elsewhere, the minor accident caused only a few thousand dollars in damages. But it could have a nationwide impact on the business models of ridesharing and other app-driven services. Because the SUV was dropping off Uber passengers at the time, the driver asked the company's insurance to cover the costs. But Uber and the driver couldn't come to an agreement, so—unable to keep driving until the vehicle was fixed or replaced—Darrin McGillis ended up filing an unemployment insurance claim against Uber and a subsidiary. That forced the Florida Department of Economic Opportunity to determine whether the driver was actually an employee of Uber, not an independent contractor, as the company claims. Last week, the Florida DEO's initial determination held that McGillis was indeed an employee, not a contractor.To read this article in full or to leave a comment, please click here

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