Discussion Question 1

Choo Choo Rides offers individuals the opportunity to develop their own business by utilizing their own vehicles as a transportation alternative for customers who need a ride. Choo Choo requires drivers to wear a train hat, install a train whistle on the vehicle, utilize Choo Choo's proprietary GPS-based customer ordering system, and make themselves available for rides at least 4 hours per day and 3 days per week. Choo Choo sets the pricing for all rides through its proprietary software program. The driver receives 80% of the cost of each ride and 100% of all gratuities. Choo Choo collects 20% of the cost of each ride. Are Choo Choo drivers employees or independent contractors? Explain. Which of these distinctions is to the advantage of Choo Choo and which is more advantageous to the drivers? Support your position.