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0 pointsAnthonyMouse8y ago0 comments

> You do know that such an offer is illegal, right?

Which law does it violate?

> It's the actual beginning of a Ponzi Scheme.

Your argument is of the form "Romans build roads, therefore people who build roads are Romans."

Ponzi schemes don't have actual customers, which inherently leaves the people at the bottom of the pyramid holding the bag.

Uber pays drivers from fares. There is no pyramid.

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michaelmrose8y ago

Ponzi schemes are defined by the fact that you can earn some revenue but not enough to sustain the employees at the base of the pyramid while having some means to bring in new players who will help you earn enough to keep going usually by contributing some part of their income to you.

Its a scam because their is a finite pool of potential idiots and when you run out the bottom of your pyramid collapses taking subsequent layers with it eventually.

If a multi level marketing company actually provides enough wealth for the bottom level to function then it isn't a ponzi scheme.

lightedman8y ago

Uber's been running at a consistent loss.

Ponzi Schemes don't have customers? There have been plenty of "multi-level marketing' businesses selling things like perfumes, knives, even candle wax, and have been ruled as Ponzi/Pyramid Schemes. It's the exact same behavior - pay us to make money.

AnthonyMouseOP8y ago

> Uber's been running at a consistent loss.

So do a million other startups. That doesn't mean the drivers don't get their money.

> Ponzi Schemes don't have customers?

The majority of the scam's revenue comes from payments from workers rather than sales to customers.

> It's the exact same behavior - pay us to make money.

Pyramid schemes have pyramids.

lightedman8y ago

"Pyramid schemes have pyramids."

Almost every business has a pyramid structure - that's literally basic business management for all but the most n00b of startups. It's the behavior that defines a Pyramid Scheme and this behavior matches it almost 100% to the definition.

In fact there's a nice database of plenty of other companies acting EXACTLY like this and subsequently getting their butts handed to them in court - http://www.mlmlegal.com/legal-cases/Illinois_v_Unimax.php is one of my favorite cases to read because it very clearly demonstrates what Uber is doing here is illegal - just because you aren't required to do it or buy into it doesn't mean it isn't illegal in the first place.

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0 pointsAnthonyMouse8y ago0 comments

> You do know that such an offer is illegal, right?

Which law does it violate?

> It's the actual beginning of a Ponzi Scheme.

Your argument is of the form "Romans build roads, therefore people who build roads are Romans."

Ponzi schemes don't have actual customers, which inherently leaves the people at the bottom of the pyramid holding the bag.

Uber pays drivers from fares. There is no pyramid.

0 comments

michaelmrose8y ago

Its a scam because their is a finite pool of potential idiots and when you run out the bottom of your pyramid collapses taking subsequent layers with it eventually.

If a multi level marketing company actually provides enough wealth for the bottom level to function then it isn't a ponzi scheme.

lightedman8y ago

Uber's been running at a consistent loss.

AnthonyMouseOP8y ago

> Uber's been running at a consistent loss.

So do a million other startups. That doesn't mean the drivers don't get their money.

> Ponzi Schemes don't have customers?

The majority of the scam's revenue comes from payments from workers rather than sales to customers.

> It's the exact same behavior - pay us to make money.

Pyramid schemes have pyramids.

lightedman8y ago

"Pyramid schemes have pyramids."

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