Comment Re:Let's take your argument at face value. (Score 1) 273
No, that's actually a terrific analogy. Uber is lottery economics, but in a different way from things like writing apps for iPhone (where you will fail and lose time and money hoping to be one of the three trendy apps that makes somebody millions).
In the Uber model, you are the lottery ticket, and Uber is the gambler. Their purpose is to keep squeezing the situation and conditions of employment until they are holding a large number of winning lottery tickets. That is defined as 'person who is dumb enough to substantially lose money and resources competing with rivals for that Uber job'.
Everybody haughtily suggests that THEY would insist upon good terms, put away money for retirement (rather than dump it back into the vehicle and into fancier bottles of water: hey look, an Uber driver with a complimentary wet bar for passengers! Top that, taxis! Stuff like that)
As such, they are saying that THEY are not Uber's winning tickets, because they would demand too much or call Uber's bluff and leave. Every time they do, Uber gets another chance to try and find somebody more desperate. It's a race-to-the-bottom condition, not necessarily even for passengers depending on the terms Uber sets, but for anybody trying to conduct business in that market segment. It's dumping to try and lock in total control of the market.
We don't know Uber would take the Wal-Mart approach of cutting back customer quality and draining money that way. They could also take the Google approach of doubling down to try and get into a unassailable position in order to control future transportation completely (when the self-driving cars take over).
For the time being, if you are an Uber driver you are the lottery ticket Uber purchases. If you exercise rational self-interest you are a losing lottery ticket. Uber requires that you not do that. The business is based on taking maximum advantage of people prepared to be cheated in order to undercut the next guy, and this is not a model where you can bring rational choices and expect to survive for long.
To be a winning ticket for Uber, you need to act as if you are sacrificing heavily in the short term so you can build a better position competing for work in the future as a day laborer. Because if you won't, the guy next to you might: and then you lose everything, Uber doesn't want you. The self-sacrificing guy made a better (to them) offer.
This is the problem with setting up a class of employment based on rational self-interest where employers benefit most by people abandoning that rational self-interest. It's a lottery, and you know you can't trust most people to stay rational enough of the time.