SHYP feels that their workers will be more loyal to them – and they can invest better in their training – if they are employees of the company. The IRS defines that contractors aren’t guided much in the nature of their work. (They want complete independence between a company and its contractors.) This limits how much you can do to shape your employees’ work. SHYP is working towards a longer term staffing strategy – rather than dealing with the turnover and service inconsistency that having a team of contractors can present.
By the way – you legally (according to the IRS) may not have much choice in the matter. If you have a large amount of control over your freelancers’ work, they should probably be classified as an employee. A recent lawsuit in CA ruled that uber misclassified a driver as a contractor and not an employee… this is likely going to ripple thru the industry of these drivers/courier tech services.
PS – if you want to learn more about this. You should join us at The People Plan workshop this winter. Info here: http://sageweddingpros.com/the-people-plan-workshop/ .
You can read more about why SHYP finds it more valuable to have employees than contractors here: http://tech.co/shyp-explains-couriers-w2-employees-2015-0