No matter how much Uber exploits its workers, it still can’t make money

…The company lost 3.0 billion in 2018; it had $11.2 billion in revenue. Given the degree to which the company is able to dodge normal taxi-service costs by offloading them to their poor drivers, that fact alone is pretty damning.

And about Uber’s business model: There are myriad stories about how bad it is to be an Uber driver, so how does the company retain its contractors? First of all, not well: a 2017 report found that only 4% of Uber drivers were still working with the company after a year, meaning the company must constantly recruit.

…Incredibly, despite this unprecedented systematized exploitation of their contractors, Uber still can’t turn a profit, and subsidizes its rides to the tune of billions a year, all of that from investors — first private ones, and now the general investing public. The infusion of more cash via its IPO feels like a good way to extend a Ponzi scheme.


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