The fundamental problem for Uber is that it's a pyramid scheme. After it morphed from being a black-limo business into a car-hail-by-app business, there was a brief moment in time when the model made sense in a cynical sort of way: Uber took a cut of every ride while drivers failed to realize that after depreciation they were losing money on every mile they drove. Basically Uber was always a loss-making concern; the VCs adored the fact they passed this loss onto naive drivers while claiming to be part of a warm & fuzzy "sharing economy."

Unfortunately for Uber, they still couldn't make money even with a perfect economic model. So they had to raise more investment dollars, which in turn required a larger vision. As we all know, this grew to absurd proportions as more billions were flushed down the toilet. Today Uber is a pure Ponzi scheme reliant on the gullibility of investors and the ignorance of drivers.

While we can argue over whether or not drivers ought to be classified as employees (they should) the hard fact remains that Uber has no viable business model and so ultimately all these folk are going to be out of work. Only the Uber executives will retire with tens of millions of VC dollars sequestered safely in their various bank accounts. Everyone else will remain stuck in a hand-to-mouth existence.

Anyone who enjoys my articles here on Medium may be interested in my books Why Democracy Failed and The Praying Ape, both available from Amazon.