Taxi companies have the same issue with too many drivers, not enough pax ... in virtually every city. The problem for taxis is that taxi companies primarily make money by leasing cabs to drivers ... that's why cab companies in Austin are trying to get ATX City Council to approve issuing 300 more cab permits (100 per company) ... this will not improve cab availability and also will not improve the earnings potential for the existing drivers. Some cabbies think that if Uber/Lyft were to disappear they'd be back on easy street; however, Austin City Council Mobility Committee (
report - page 2, paragraph 3) indicates that there was no negative impact on Taxi trips after Uber/Lyft started operating in Austin.
On the flip side, Uber makes money from every trip ... so let's assume that there were 1,000 trips in Austin on any given day ... Uber doesn't care if the 1,000 trips are covered by 100 cars (10 trips per car) or 1,000 cars (1 trip per car) ... Uber makes the same revenue on those trips and has the same expense on those trips whether the 1,000 trips were handled by 100 cars or 1,000 cars. It's a zero sum game. In the end, Uber wants to make sure that 100% of the potential trips had a driver accept (and drive) those trips ... and they will flood the marketplace with drivers to make sure that 100% of the trips are picked up so that they are not leaving any money on the table. If in the course of your "partnership" with Uber you made money, great ... Uber doesn't care how much you did or did not make; as your earnings, per se, have no affect on their bottom line. And if you happen to quit because you didn't make enough money to survive, no biggie ... Uber will just lure the next sucker into their shell game.