The absurd part is that this is exactly what a taxi service does as well. Most Taxi drivers are 1099 contracts that are connected with rides by dispatch.

Taxi driving contractors have less autonomy than uber drivers, but you don't see Cali prosecutors going after taxi companies.

To some extent, they are right. To their customers, they pretty much are a (more convenient) taxi company.

To their drivers? They are a shittier taxi company that doesn't provide cars, yet still charges drivers 25% of fares in exchange for legal protection against taxi laws and customers/brand.