>Lyft/Uber can upgrade them to employees but the arithmetic of bottom-up economics means Uber has to raise prices to cover full employment benefits. The raised fares conflict with what passengers are willing to pay
Then the business is not profitable enough to exist. Simple as that.
It’s incredible how many people just start from the assumption that these services must exist and then work backward from that. Obviously you run into serious dissonance when you arrive at the pricing problem, where the solution is quite simple: they shouldn’t exist.
Then you can start thinking about real solutions to urban transit that have existed for more than a century.
The starting assumption is that free and rational adults are choosing to work for the wage and customers are choosing to pay a sufficient price, so it should exist. That's not working backward, or dissonance--it's an acknowledgement of reality.
It's a different unrelated group claiming that it shouldn't exist if it doesn't provide the pay / benefits they think it should.
I think if we're to the point that we're comparing Uber to the violence market, we're not having a meaningful discussion any more.
True: it is not the case that we should fundamentally allow any association between two consenting adults. No, this does not justify preventing it in other cases.
I don't buy that. These rides are only as cheap as they are because of VC money and they aren't profitable. Imagine the cost of rides without VC money and more pro-worker regulations? If they aren't profitable now I don't see this ever being profitable without some radical change to the business model (driverless fleet for example).
There are some rides that are subsidized as loss leaders undoubtedly, but that's not the primary case.
The way I see it, it's already proven that riders will accept paying X dollars and drivers will work for X dollars, minus Y% for Uber's cut. Uber's Y% is likely higher than it needs to be, but at the end of the day, it's a SaaS app. Even municipalities have set up local competitors / clones.
These companies are certainly pouring a ton of money into expanding into new geographic areas, other business models, and more. But as long as riders will pay an amount even a little higher than what drivers will accept, it can be profitable.
You know the entire purpose of the company that runs this site is to fund businesses that aren’t profitable enough to exist? Only two companies that YC has funded have gone public.
You can build a robust bus system, government run and not expected to make a profit, for example. You can have registered cabs. You can have rental bikes (bonus if they are electric assisted). If you can make sure scooters don't litter the walkways, that works as well. If you already have the infrastructure in place, perhaps trams or subways are a good thing.
We could expand busses to be able to travel from city to city. Same thing with trains: Make them run on time and expand. Busses, however, use the most extensive existing infrastructure and would likely be more cost-effective in most areas.
Not all "busses" need to be large, though. In some areas or at some times of day, a 15 passenger van might be enough. We could have bonus points if we changed school bus laws so that we don't have a duplicate bus system that leaves busses unused for much of the day.
In the US, one could take a sliver of the military budget (where there is plenty of waste) to pay for it.
Uber left Denmark after they decided that they have no interest in adhering to the relevant regulations. We still have trains, commuter trains, subways, busses, bikes, scooters, taxis and cars. People still can get to places and fairly conveniently.
Then the business is not profitable enough to exist. Simple as that.