Well, it’s simple: Currently, the drivers are liable to get insurance, get a license, etc.
So, for example, if a uber driver has an accident, he has to pay himself for all the costs.
This ruling also provides safety for the drivers, because the driver (which has to behave as if he was an employee) now also gets the protections valid for employees.
There are quite some major differences from being regularly employed. For example, you can work whenever you want including never. Let me know what your boss says about that.
User's insurance isn't particularly great.
For one, they make no mention of requiring commercial vehicle insurance (https://www.uber.com/driver-jobs) and say that drivers only need personal vehicle insurance.
They have contingent liability injury insurance with a total available of $100K.
They talk of having commercial insurance during trips, but it is only third party liability and UI/UM. If you're a passenger in an Uber accident and insurers decline to cover when they become aware the vehicle was driven commercially, you're out of luck.
A lot of regular employments have this, too. Even employees in some government agencies in Germany can just decide to go to work 3 hours later, or not at all that day.
This is not something that is specific to contractual work.
Nobody wants to willingly insure some random Uber driver. Would you? Or would you start demanding references, background checks, the backing of a larger entity?
So, for example, if a uber driver has an accident, he has to pay himself for all the costs.
This ruling also provides safety for the drivers, because the driver (which has to behave as if he was an employee) now also gets the protections valid for employees.