Uber is launching a program where Uber lends cars to Uber drivers who do not have the cars that meet Uber's standards in a partnership with a rental car.
The idea is actually quite brilliant because it combines the underutilized labor and capital. People who want to make extra money but with no decent car can earn money and the rental car company also makes money.
From an efficiency point, this is wonderful. However, the cost $210 may be hmmm questionable. How did they come up with that amount? Also, shouldn't there be some differentiation. Just like insurance, good Uber drivers should get discounts.
The article does some calculations and shows that it is not a bad deal. I have not done the calculations but it does not look like a good deal.
However, let us remember that without this program, some people could not have ever made money using Uber. So overall, I do agree that this program has issues but in terms of efficiency, it is great. For drivers, just make sure that you do the math and it would be great if Uber could offer at least a range of expected profits like insurance companies. That would make the whole thing much better for Uber, drivers, rental companies, and consumers. Everyone wins ^^
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