I think the savings from reduced liability and simplified corporate structure would offset the costs. Let's face it, Uber doesn't make money as it is and neither do Uber drivers once you factor in all the expenses.
But if you can shift the liability for driver satisfaction and compensation off of Uber and onto it's franchises suddenly Uber isn't making 10,000,000 transactions per day. They're only making 10,000 transactions per month. That's money making interest for Uber instead of drivers. Also, Uber no longer makes money from rides. They make money by selling franchise rights and access to the platform for franchisers. The franchise is responsible for turning a profit from rides, and also for ensuring their employees are compensated.
There would also be an increase in efficiency. Currently my friend starts off 30m south of Boston for Uber, but her rides typically take her north of Boston within a few hours. Uber doesn't care how far out of her way she's going. When she inevitably shuts off her app she must then drive 2 hours to get home. If each franchise had it's own "turf" this could be organized and reduced. The result is less wasted fuel/time for the drivers and a smoother ride because drivers stay in areas they're comfortable and familiar with.
But if you can shift the liability for driver satisfaction and compensation off of Uber and onto it's franchises suddenly Uber isn't making 10,000,000 transactions per day. They're only making 10,000 transactions per month. That's money making interest for Uber instead of drivers. Also, Uber no longer makes money from rides. They make money by selling franchise rights and access to the platform for franchisers. The franchise is responsible for turning a profit from rides, and also for ensuring their employees are compensated.
There would also be an increase in efficiency. Currently my friend starts off 30m south of Boston for Uber, but her rides typically take her north of Boston within a few hours. Uber doesn't care how far out of her way she's going. When she inevitably shuts off her app she must then drive 2 hours to get home. If each franchise had it's own "turf" this could be organized and reduced. The result is less wasted fuel/time for the drivers and a smoother ride because drivers stay in areas they're comfortable and familiar with.