I feel like the answer is obvious? Uber should create a new full time driver position which pays a fixed hourly rate.
So there would now be two classes of drivers. Those fully employed by Uber, with all the benefits normal full time work in the US entails (i.e. health insurance) and the downside being, their income is capped. The other class would be those who drive on their own schedule like it is now, with the main benefit being their income is potentially uncapped. Uber's actually in a pretty advantageous position to hire for the new position since they have data on the best drivers.
I am sure I am missing a lot here tho, like what prevents Uber from giving the most profitable rides to itself? Or how do they avoid churn in the full time work force?
Hiring full time employee would cost Uber a lot, it's exactly why they are using their current model. It saves them in taxes, insurance costs, liability, etc etc.
So there would now be two classes of drivers. Those fully employed by Uber, with all the benefits normal full time work in the US entails (i.e. health insurance) and the downside being, their income is capped. The other class would be those who drive on their own schedule like it is now, with the main benefit being their income is potentially uncapped. Uber's actually in a pretty advantageous position to hire for the new position since they have data on the best drivers.
I am sure I am missing a lot here tho, like what prevents Uber from giving the most profitable rides to itself? Or how do they avoid churn in the full time work force?