That's similar to the taxi system in many (European and proabably traditionally US) places. The big differences compared to Uber there are:
- The rates are rather high, so the e.g. the costs for the car are taken into account and still the driver earns a decent living
- The city does not take a significant share of every fare paid
As long as the system is somewhat balanced and no turbo capitalism exploiting drivers in a weak position nobody tries it up to the supreme court. (In the US the legal system is less balanced, so I don't think Uber drivers would make it to the supreme court, not even dreaming of getting a similar verdict.)
- The rates are rather high, so the e.g. the costs for the car are taken into account and still the driver earns a decent living
- The city does not take a significant share of every fare paid
As long as the system is somewhat balanced and no turbo capitalism exploiting drivers in a weak position nobody tries it up to the supreme court. (In the US the legal system is less balanced, so I don't think Uber drivers would make it to the supreme court, not even dreaming of getting a similar verdict.)