Uber Wants to Create 50,000 Jobs, Take 400,000 Cars Off the Road in Europe This Year

re/code ^ | January 18, 2015 | Ina Fried

[Balding_Eagle]

all of the players involved in the business transactions (drivers, passengers and Uber) see the true costs of the business.

It sounds like you might already know what they are.

What are the true costs?

[Alberta's Child]

The higher risk of insurance claims, for example. Uber has already gone through several situations where they've felt a need to increase the insurance coverage they provide, due to lawsuits from passengers and other motorists involved in accidents with Uber drivers.

Another aspect of this that doesn't get a lot of attention is the tax implications. If Uber drivers are technically independent contractors, then Uber may be required to file 1099 forms with the IRS and the income their drivers get paid must be reported to the IRS.

As time goes on, I think a lot of these drivers are going to decide that this isn't such a great deal for them.

Interestingly, I don't think Uber sees this as a long-term venture as it is currently constructed. I've long felt that their ultimate goal is to make money by selling their rideshare technology to taxi and limousine companies all over the world.

[Fresh Wind]

I wonder what happens when one of these Ubermobiles gets into an accident. Who gets sued?

[Alberta's Child]

Everyone gets sued, but the claims are usually paid according to the provisions of the different insurance policies.

1. If you are driving your own vehicle and carrying a passenger through Uber's ridesharing service, your insurance company will not be obligated to pay the claim unless you have a special rider on your policy that allow you to operate your vehicle for commercial purposes.

2. As a result, Uber's insurance policy would cover the claim.

[SamAdams76]

Otherwise it is just taking revenue and jobs from current cab drivers.

Not exactly. There is a very encouraging trend among young people today in which they Uber to and from bars as opposed to taking their own cars. These kids would never take a traditional taxi. This is cutting down significantly on having drunk drivers on the road.

[SamAdams76]

As I’ve said before, this business model isn’t going to last very long.

Yes, you have said this many times before. And you are still 100% wrong.

[Alberta's Child]

Damn right I was wrong. I thought for sure these companies would be regulated out of business by now. LOL.