Words Matter with Rideshare Drivers

I was listening to a podcast this weekend and I got concerned when I heard the CEO of a rideshare company mention interviewing potential drivers for the platform.

Why? Because the interview could be a sign you may not know how to navigate the right-to-control test the IRS has. I have seen these missteps turn into misclassification of worker violations costing firms multiply millions of dollars. See one example here

The more control a company exercises over how, when, where, and by whom work is performed, the more likely the workers are employees, not independent contractors.

It’s best to stick to binary questions about qualifications/performance metrics you will insert into a contract. For example, does the contractor have a driver’s license? That’s an easy yes or no.

You can also use the portfolio approach. When you come in to onboard onto the platform please be prepared to show us your driver profile page. That way you are looking at hard data on the outcomes they produce.

Same thing with background checks and drug screenings. You are looking for the 6% ( from personal experience) of potential contractors who could be driving under the influence on your insurance Example here has demonstrated a propensity to commit major and violent crimes in the last 7 years. Example here
If contractors are logged onto your platform you have a potential liability there.

You can say “Hey we only work with drivers who have been on other platforms for 1 or more years and have completed 100 or more trips, with a rating of 4.8 and a cancelation rate of less than 3%. “

If you have been in business for any time your internal data is going to tell you what those above numbers should look like.

Also, look into your customer surveys and reviews. Your customers will tell you what expectations they have. You can then turn those into contract requirements.

When I was in defense contracting, I saw a lot of fly-by-night operators who didn’t or couldn’t perform in the 2003–2005 time period in Iraq and Afghanistan.

So in response, the government started putting in the length of time in business as well as proof of past performance requirements on the larger dollar contracts.

Lastly, at the end of the day, deliveries have to be completed. You want to look for indicators that drivers will make several attempts to ensure this happens.

Notes or compliments on providing great service, being an all-star driver, great conversations all quantitative indicators that the drivers can solve for finding gate codes and building numbers.

Hope this helps.