The problem Uber is that not only they are floating on VC money with not enough real world profits to justify that kind of valuation or burn rate, but also they are basically destroying any existing organization for taxi services along with the legal regulations and protections for drivers.

Now everything is all rosy when Uber is paying gobs of cash to drivers with the money it takes in from VCs, in the process destroying every kind of law and regulation that protects the well being of those drivers who are enjoying their payouts very much…

Tomorrow, when the cash starts running low and VCs start wanting returns on their investment, the same drivers who helped Uber to destroy the taxi organizations, local, national laws and regulations which protected drivers, will be the ones rolling downhill. For their payout will be the first to get cut for the sake of investors’ profits, and because they already helped destroy laws and regulations, there will be nothing to protect them from the viciousness…