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Comment by zelon88 | Hacker News Reader

This is why, instead of essentially promoting the next wave of "too-big-to-fail" monopolies, we should be trying to franchise things like this.

I had the idea a while back when someone I knew was getting the run around by Uber.

If someone developed a platform that catered to franchisees instead of end-users (and contractors) it would be easier for everyone. Easier to price the service, easier to pay the workers, easier to negotiate, easier to run the business in a smaller scale.

So instead of Uber or DoorDash having 2,000,000 contractors, they have 10,000 franchises with each one maintaining it's own affairs. Everybody wins!

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why would that make anything better? sounds like you would just add an additional rung of people who don't actually drive anywhere but still need to be paid.

I think the savings from reduced liability and simplified corporate structure would offset the costs. Let's face it, Uber doesn't make money as it is and neither do Uber drivers once you factor in all the expenses.

But if you can shift the liability for driver satisfaction and compensation off of Uber and onto it's franchises suddenly Uber isn't making 10,000,000 transactions per day. They're only making 10,000 transactions per month. That's money making interest for Uber instead of drivers. Also, Uber no longer makes money from rides. They make money by selling franchise rights and access to the platform for franchisers. The franchise is responsible for turning a profit from rides, and also for ensuring their employees are compensated.

There would also be an increase in efficiency. Currently my friend starts off 30m south of Boston for Uber, but her rides typically take her north of Boston within a few hours. Uber doesn't care how far out of her way she's going. When she inevitably shuts off her app she must then drive 2 hours to get home. If each franchise had it's own "turf" this could be organized and reduced. The result is less wasted fuel/time for the drivers and a smoother ride because drivers stay in areas they're comfortable and familiar with.

So basically, after "disrupting" cab companies, Uber would be transitioning into a software vendor for cab companies.

I guess so. It would throw both business models a lifeline and help to stabilize the supply/demand problem (right before automation creates a whole new supply/demand problem).

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