Uber was doing fine while they were able to transfer their risk to third parties. When they have to start meeting their responsibilities, the numbers don’t work nearly as well.
Liability for negligence - they claimed that the drivers were independent contractors, not employees. So what happens when someone is injured. Certainly most private insurance isn’t going to cover the driver while they are using their car for hire (check your own policy). So Uber ended up having to insure to cover the risk.
Intentional wrongdoing - they pulled out of Austin because that city was going to require them to screen out criminals. Uber realized that that might strike a deadly blow to their business models. Other cities have let them get by with faked paperwork (see Dallas) or minimal screening so that rapists can have a field day. (see San Antonio, Orange County, Sydney, Australia - the list is quite long, and dates back to at least 2014). Eventually, risk management costs will catch up with them.
Pay and benefits - drivers in some cities are chafing under the ‘contractor’ designation, and seeking minimum wage and fair treatment. It’s a typical labor - business dispute, with most of the country club Republicans on FR siding with the company on that issue.
We do have a number of CCRs....
“able to transfer their risk to third parties’
Yup. Insurance is big deal. Business insurance is very different than individual auto insurance.
We’ve had a few animated threads on Uber in recent years. I never computed the numbers myself, but when you factor in the fuel costs and vehicle mantenance, I wouldn’t be surprised if the average Uber driver barely makes minimum wage.