Back in June I questioned the viability of the Uber business model in terms of “what’s in it for the driver,” and my belief that drivers would become scarce. Maybe I was on to something. At the end of July Uber announced a lease program for Uber drivers. This program allows drivers to lease, maintenance included, a two-year old, mid-sized car for about $150/week plus a $250 deposit. If the driver wants out of the contract before the three years are up, all they lose is their $250 deposit.
This seems to me an excellent fix as the operating costs are now fixed and known. The driver gets a good car to use for his/her job as well as personal use, and income will be tied to hours worked and customer availability. My assumption is that the hard-working drivers will make about $30K/year maybe a bit more, but the vehicle risk has been removed.
Now, if Uber can just work out their issues with the local governments.