“the business model is flawed (in that it fails to take into full consideration the risk profiles involved and the legal and political environment)”
If someone had asked me if this was a good business model before Uber came out, I would have said it will never work.
But it has worked.
There is always a balance between costs versus safety when it comes to consumer protection.
Uber does a background check on its drivers. It does not do so on the passengers. Just credit card and address information.
They raised a lot of private equity money so far. Those guys tend to have a pretty good idea of whether a business model makes sense or not.
Yeah, like Mr. Chelsea Clinton's fund? Here's some other success stories for you: http://www.investopedia.com/articles/mutualfund/05/hedgefundfailure.asp
Uber does a background check on its drivers.
It refuses to do an *effective* background check on its drivers.
“But it has worked.”
How? it’s lost multiple millions every quarter according to internet articles.