I'm wildly out of my depth, but why couldn't Uber drivers be regulated effectively as micro-franchises? The dynamics seem pretty similar -- drivers benefit from the Uber marketing, brand (which brings trust which is necessary in a business as personal as getting into a stranger's car) and "secret sauce" (the dispatch network and app experience). Uber wants to control some aspects of each "franchise" like the cleanliness of vehicles, making sure that they don't discriminate against customers in unappealing areas, and, to some extent pricing. This is necessary to maintain the Brand and keep customers coming back. Uber doesn't want to get into all aspects of running the franchise (setting hours, making sure drivers are only driving for them etc), because it would un-profitable to do at such scale -- just like McDonalds doesn't want to get deal with the management of individual restaurants.