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Old 10-20-2015, 09:45 AM   #418
Resolute 14
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Originally Posted by peter12 View Post
And they are currently operating at a loss. This is about market share, people. That said, I do agree that taxi companies won't just go quietly into the night.
Yup. And it is a good strategy. Undercut the competition by ignoring all the rules, build that loyal fan base up to cult-like levels, then eventually raise prices enough to turn a profit.

But the business plan has some major challenges ahead. Lawsuits like the one in Toronto alleging Uber misrepresented the nature of its insurance policy is one. That the California Labor Commission has ruled one driver was an employee rather than an independent contractor is another - and Uber is being sued all over the place over that one. That's the key issue, imnsho. If Uber loses the employee vs. contractor battle and has to start paying out overtime, material costs, medical, etc. They're done.

The flip side though is that some insurance companies are looking at offering "commercial lite" plans that would not be as expensive as full commercial insurance, and greater competition almost always benefits the consumer. Even if Uber ultimately goes down in flames, successors willing to respect consumer and driver protections will follow in its footsteps.

Last edited by Resolute 14; 10-20-2015 at 09:47 AM.
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