There is also an argument that doing this gives a company certain competitive advantage. E.g. if (completely made-up example) Lyft were practicing this kind of

There is also an argument that doing this gives a company certain competitive advantage. E.g. if (completely made-up example) Lyft were practicing this kind of tax avoidance and Uber did not, the former would have potentially more budget left over to undercut the latter on prices and/or salaries. So proper laws are still needed for an even playing field. Not that I condone Uber's practice anyway.