Shyp “officially live” in Chicago
On-demand delivery company Shyp has announced its official launch in Chicao, following three weeks of beta testing. In a statement posted on its blog yesterday (1 October), Shyp also said that Chicago is the “first Shyp city with a courier fleet composed entirely of W2 employees”.
In the US, independent contractors use 1099 tax forms, whereas employees use W2 tax forms.
As previously reported, there has been a number of legal cases in the US where people working with/for on-demand courier and ride-hailing companies have claimed that they have been “misclassified” as independent contractors, when they should be viewed as employees (and therefore be entitled to various employment benefits).
The Shyp blog added: “Earlier this year we announced our decision to convert couriers in every city to W2 team members, and with our Chicago launch, we’ve implemented new training and scheduling procedures to improve operations and better support the team on the ground. We’re excited to roll out the same processes to cities nationwide and bring hundreds of new employees on board.”