Those cars, while old and unattractive, are safe, approved, and work. It is all about doing the bare minimum to provide safe transportation with minimum maintenance costs, thereby maximizing profit (you know, that thing needed for companies to exist).
Uber is double dead, in that:
- they subsidize current rates and lose money hand over fist
- even with the subsidies, drivers barely make minimum wage, once you account for maintenance.
If the subsidies go, it won’t make any sense to drive for uber. Turns out putting 200K miles a year on your car is quite costly to the average joe.
Uber’s model doesn’t change with more scale (more drivers). The math doesn’t work at any scale. There are no fixed costs to amortize. This has been pointed out countless times for the past several years, but for some reason folks ignore it.