“The entire Uber business model is that they are independent contractors — not employees. If they are independent contractors they should have a business license like every other business. Why is this a problem?”
Exactly!
I was an independent contractor for 15 years and had to get a business license. An interesting note is that the City of Atlanta prosecutes non licensed businesses, the fine is $10,000 and/or 2 years in jail. They actively pursue non licensed operations.
Think about how sick that is. Such a claim on your labor is really a claim on you as chattel.