Shyp now classifies its courier drivers as employees, not contractors

Shyp, the on-demand courier service, has switched all drivers to W2 employees. The company calls it “an investment in a longer-term relationship with our couriers, which we believe will ultimately create the best experience for our customers.”

The change won’t affect Shyp’s other main roles, satellite van drivers or warehouse personnel, as they were already employees. W2 couriers will get the full compliment of benefits Shyp provides like unemployment and workers compensation, and Shyp will also pay for all vehicle expenses.

As the service grows, Shyp says it wants to provide “additional supervision, coaching, branded assets and training” for couriers; something Shyp feels can only be done when they’re employees rather than contractors.

It’s an interesting move considering the largest ‘share economy’ entity, Uber, is fighting to have its drivers considered contractors. The California Labor Commission recently ruled an Uber driver is an employee; a battle Shyp is carefully avoiding.

➤ A Note from Shyp’s CEO [Shyp]

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