Improving Uber's Profitability
But none of these initiatives address the root causes of Uber’s flawed business model, and thus they cannot and will not be effective.
The companies have countered that they do not employ drivers but instead license access to a platform that matches those who need rides with nearby available drivers.
That almost guarantees that Uber can’t make money because the company and its competitors keep adding drivers, and it is ultimately is a race to the bottom. At some point Uber has to focus and show us that the business model does make sense because taxis have never been a very good business.
Editorial Bd., Defining ‘Employee’ in the Gig Economy, N.Y. TIMES (July 18, 2015), http://www.nytimes.com/2015/07/19/opinion/sunday/defining-employee-in-the-gigeconomy.html
Cotter v. Lyft, Inc., 60 F. Supp. 3d 1067, 1070 (N.D. Cal. 2015) (order denying summary judgment); O’Connor v. Uber Techs., Inc., 82 F. Supp. 3d 1133, 1135-38 (N.D. Cal. 2015)
Richard Epstein, Uber and Lyft in California: How to Use Employment Law to Wreck an Industry, FORBES (Mar. 16, 2015, 10:57 AM)
Myra H. Barron, Who’s an Independent Contractor? Who’s an Employee?, 14 LAB. LAW. 457, 457 (1999)