This might not be universal, but here it doesn’t even require it.

Back in 2017, Uber tried to expand to my home province and tried to get us to change our local regulations regarding rideshare (it boiled down to Uber being required to call its drivers employees and to function like the pre-existing taxi services).

Local government doesn’t budge, so Uber decides that it doesn’t want to come anymore. Within the year, a local alternative pops up that complies with the regulations Uber tried to fight, and they’re still profitable 6 years later.

It’s not that Uber isn’t capable of paying their employees living wages, it’s that they can earn more money if they don’t.