Because it takes time for the costs to be realized by the driver.
Vehicle depreciation doesn’t meaningfully occur with every passenger mile, it piles up until you have a large repair bill.
Vehicle depreciation doesn’t meaningfully occur with every passenger mile, it piles up until you have a large repair bill.
Same economics as an unsafe, unregulated building site. Get paid cash under the table, pay no taxes, get no healthcare, make enough to get by, until you get sick or injured on the job, then you’re out and the next desperate person takes your place.
The invisible hand.
Do the rental companies also not understand depreciation?