Companies operating in the “on-demand” or “gig” economy have enjoyed tremendous success in recent years as emerging technologies and shifts in consumer tastes have buoyed their growth. These companies span a cross-section of industries (transportation, food delivery, lodging) but have one thing in common: Each aims to deliver traditional services more efficiently by connecting consumers directly with service providers.
As we all know by now, though, success often begets legal challenges. Take Uber, for example. The company has faced a thicket of litigation in recent years, most notably related to (1) the enforceability of its arbitration agreement and (2) the question of whether its drivers are employees or independent contractors.