[joosters]

Great! Let's encourage drivers who can't afford a car to take out (in effect) a huge loan on an expensive car that they couldn't otherwise obtain, then make their more-affordable repayments conditional on working as a reduced-rights contractor for us. So this is basically indentured service then?

[mixedbit]

I think we've already seen something like this in practice. One missing piece: let's make money by betting that these drivers won't be able to pay the loans.

[S4M]

The difference between this and a mortgage for a house is that the value of the collateral will decrease over time, even in the best case.

[loceng]

If there becomes excess supply of drivers and vehicles, not improbable.

[buro9]

You have just described Addison Lee in the UK: http://www.addisonlee.com/

[jaibot]

How is this different from a loan to start any business?

[joosters]

Um, in many many ways. It's probably easier to compare it to something similar, e.g. An ordinary car lease. Here, you have all the advantages/disadvantages of a leasing agreement, but you're now tied to work as a contractor to Uber, who have no obligations to you. No guarantee of work, no certainty of income, few benefits. Meanwhile, should you stop working for them or if business is not good, suddenly you are on the hook for a lease that you can no longer afford.