Uber and Lyft Under Fire: To Rideshare or Not to Rideshare
Rideshare companies like Uber and Lyft have created an incredibly convenient way for people to get around in the “for-hire” transportation world. The rideshare application (“app”) almost instantly connects individuals to drivers. The app is simple to use, and has become a regular mode of transportation from millennials to baby-boomers.
To become a rideshare driver is simple. Typically, the drivers don’t have to meet the same licensing and inspection requirements that apply to the more traditional taxi and limousine services. Rideshare companies allow individuals from all walks of life to earn extra money utilizing their own vehicle through a very simple application process which typically does not include much, if any, background check. In cities where these options are available, taxi/limousine ridership has declined.
While these companies provide great, convenient services, the risk management, insurance and compliance issues that exist are in many instances unchartered territories. This is especially true when it comes to safety and insurance coverage (ie.) whether riders are “covered” and, if covered, to what extent coverage applies when they swipe their phone to get a ride.