Good article and spot on analysis.  From my first Uber ride and talking to the drivers it was obvious the business model doesn't work for the drivers.  They were not thinking about the full cost recovery on their vehicles.  The fare was way too cheap.  
I love the product and have used it on 3 continents in a dozen countries.  Personally I have chosen to tip the drivers 20-30% to try and compensate.  If only taxi companies could engage in better apps and service.