>If they have to raise prices above traditional cabs (highly unlikely)
I don't think you realize how much it would damage their business model's profitability to have to pay payroll taxes on all their drivers. It's not just about offering a better service to consumers; Uber/Lyft would emphatically not have this many backers if their business model weren't insanely profitable. If profit margins shrink, poof, there goes funding.
I don't think you realize how much it would damage their business model's profitability to have to pay payroll taxes on all their drivers. It's not just about offering a better service to consumers; Uber/Lyft would emphatically not have this many backers if their business model weren't insanely profitable. If profit margins shrink, poof, there goes funding.