Driver Inc. Business Model Crumbling as Enforcement Intensifies
The controversial Driver Inc. model, which misclassifies truck drivers as independent contractors, appears to be on its last legs. Industry insiders point to increasing enforcement actions and shifting economic realities as signs of its impending demise.
Driver Inc.’s days may be numbered as enforcement is ramped up. (Photo: iStock)
“Virtually every issue we talked about stemmed from Driver Inc,” noted a moderator at the recent National Recruiting & Retention Symposium (NRRS). “Hiring. Safety. Training. Professionalism. Exploitation.”
The collapse appears to be happening on multiple fronts. Financial institutions are becoming increasingly wary of undercapitalized fleets operating under the Driver Inc. model, refusing to extend credit or finance equipment purchases in the current economic climate.
Provincial authorities are also stepping up enforcement. Quebec has intensified scrutiny of “Chauffeur Inc.” operations, while British Columbia launched targeted roadside inspections in May that have already led to operating certificate terminations.
“The early results were so concerning that agencies are now conducting site audits,” a source familiar with the operations revealed.
Perhaps most significant is the U.S. enforcement of English Language Proficiency (ELP) requirements beginning in June. Drivers who can’t sufficiently read or speak English can be put out of service – including Canadian operators in the U.S.
Industry experts predict several outcomes as the model deteriorates. Legitimate Driver Inc. fleets will likely transition to T-4 employment arrangements to maintain their operating authorities. Others may face litigation from accidents or lose talent to companies offering proper employment.
“Good Driver Inc. fleets will turn T-4-legit so as not to lose their authorities,” one industry observer noted. “The carriers unwilling or unable to adapt will be forced out of the industry.”
The cultural shift may prove most decisive, as younger generations reject exploitative contract work in favor of legitimate employment with real benefits and opportunities.