Here's a hypothetical system that actually uses independent contractors.
Lets say Newber (a new disruptive Uber competitor) starts up to explicitly conform to the independent contractor regulations.
Newber drivers set their own prices, which are then published on Newber's app (sorted by some formula accounting for location + costs). When a passenger looks for a driver, they see the list of prices available, and then call the one that has the best price. Newber collects a small fee for the successful listing.
In contrast, Uber sets the prices on both ends. Without the independence to set your own prices, Uber is closer to an employee/employer relationship than the classical Taxi models.
Sidecar did exactly that and, for what it's worth, never got in trouble with regulators on employment issues. Some of the complaints I've heard about the practice were about the driver-enforced surge pricing - some drivers would price the ride at $9,999.99 on New Year's Eve, so you always felt like if you let your attention slip a bit (perhaps the process would be sped up by alcohol consumption), you'd be gouged.
Sidecar did that - I tried it once after the Uber driver complained I wasn't using Sidecar for 15 minutes. All the rides were too expensive, so I didn't take any of them. And now they're out of business.
Lets say Newber (a new disruptive Uber competitor) starts up to explicitly conform to the independent contractor regulations.
Newber drivers set their own prices, which are then published on Newber's app (sorted by some formula accounting for location + costs). When a passenger looks for a driver, they see the list of prices available, and then call the one that has the best price. Newber collects a small fee for the successful listing.
In contrast, Uber sets the prices on both ends. Without the independence to set your own prices, Uber is closer to an employee/employer relationship than the classical Taxi models.