> “Uber and Lyft can survive classifying drivers as employees,” she says. “It might cost them a little more, but it’s a successful concept. It’s not going to go away because we are trying to enforce the rules
> And several on-demand companies, such as the house cleaning start-up MyClean and the food delivery service Munchery, already treat their workers as W-2 employees. These companies’ labor costs are higher than their 1099-dependent rivals, but they get additional benefits, such as being able to train their workers and hold them to consistent schedules.
I wonder if Uber is fighting this because it will cut into profit margins and raise overhead costs, rather than because it is an existential threat. There seems to be two different opinions presented in the article (though I'm not educated enough in this area to be able to tell which one is closer to being right).