[Jommi]

However, if company A is in a free market industry they would not be able to sustain that 3$/hr.

Uber has been able to sustain their policies for close to 10 years now. Its pretty clear that drivers are being paid an amount close to their actual value. If they werent, they would be working for some other job.

[mdorazio]

You're assuming two things that aren't true:

1) Other, better, jobs of the same type (hours/entry requirements/pay) are available to drivers. Reality: Uber created a class of "job" where the bar for entry is so ridiculously low that anyone with a basic driver's license can do it. At the same time, real incomes for primary jobs currently or previously worked by Uber drivers are often not high enough to actually cover cost of living where they live. There are multiple market distortions on both sides going on here that are too long to discuss in a comment, but saying "well if it was so bad they would just work somewhere else!" is a pretty bad argument. If getting black lung was so bad, why didn't coal miners just work somewhere else?

2) Other companies can pull the same legal and financial shenanigans as Uber to offer those opportunities. Reality: Uber has never been profitable - if it wasn't VC funded it would have to pay its drivers even less than it currently does, so acting like it's a cost competitive business is incorrect. Uber also does not adhere to laws, as in this case with CA - other companies (like taxi companies) that do adhere cannot compete (and thus cannot provide alternative opportunities) because running in adherence is expensive.

[Jommi]

Really? You are really going to assert without any evidence these completely wrong points?

I can tell you straight out, from experience and data, that both of your points are completely incorrect.

1) Its 2020. The "gig economy" is REAL. Its actually a terrible situation for Uber, as competing jobs are more abdundant than ever, and new starts with fresh VC-fueled incetives are popping up left and right.

I can promise you that in nearly every market Uber operates in, the drivers are signed up on every single ridehailing competitor, every single food delivery service, every single grocery delivery service, and every single last mile delivery service.

And they will be constantly looking at where the best bang for buck is. CONSTANTLY.

2) Uber's ridehailing business is profitable in the US. Go check their publicly available investor data.

Uber does have a finnicky relationship with "the law" for sure, in multiple countries. That is completely true. However at some times "the law" is protecting a service that is not in the best interest of the consumer, as has been with most over-protective taxi regulations.