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From 2010-2014, ride sharing use worldwide has increased close to 4X!
- 2010: 1.16 million
- 2014: 4.94 million
- What Are Ride Sharing and Ride-Hailing Services?
- Ride sharing companies connect regular drivers to people that need a lift
- Ride sharing services (e.g. BlaBlaCar, Zimride, etc.)
- Multiple groups, similar to carpooling
- Strangers share one car and are dropped off at different locations along a route
- Ride-hailing services (e.g. Uber, Lyft, etc.)
- Single group, similar to a taxi
- Drivers pick up rider(s) and deliver them to a decided destination
Most people interchange ride sharing and ride-hailing, so many reports consider these services to be one in the same
- Why Are People Using Ride Sharing Services?
- More Convenient
- Easy pickup and drop-off
- No searching for parking spots
- Less Expensive
- Cost less than a taxi
- No parking fees
- Environmentally Responsible
- Reduces emissions and traffic
Ride-sharing services are predominantly only available in and around urban areas, making them unavailable to many Americans
- Who is Using Ride Sharing Services?
- Only 15% of American adults
- Age
- 18-29: 28%
- 30-49: 19%
- 50-64: 8%
- 65+: 4%
- Income
- $75,000+: 26%
- $30,000-$75,000: 13%
- $30,000 and less: 10%
From 2014 to 2016, for-hire vehicles crashes more than tripled increasing from 534 to 1,672!
- Would you be covered in the case of a crash?
- Ride Sharing Insurance and Coverage
Period 1 is when the app is on, a trip hasn’t been accepted, and there are no passengers in the car
- Drivers Only
- Personal insurance
- Used by most ride sharing drivers
- Likely to fall short, as many companies don’t cover drivers that are earning a profit
- Ride sharing insurance
- Supplements a driver’s personal insurance and covers during Period 1
- Only 23% drivers purchased additional ride sharing insurance coverage
- Commercial insurance
- Typically used by taxi drivers and available for ride sharing drivers
- But costs 10X more than personal insurance
- Drivers, Riders, and Other Parties
- Liability coverage and uninsured motorist injury coverage
- Promised by ride sharing companies for drivers and riders
- Up to $1 million for each
From 2012-2014, Uber was involved in at least 173 U.S. lawsuits, while Lyft was involved in 66 cases
- Legal and Safety Gaps of the Ride Sharing Industry
- Ride Sharing Drivers Aren’t Employees
- Drivers are classified as “independent contractors”
- Ride sharing companies can avoid claiming damages if the driver is to blame for the accident (e.g. drunk, distracted driving, etc.)
- Period 1 Is a Grey Area for Drivers
- Drivers must file a personal insurance claim for accidents during period 1, unless state law/ride sharing policy specifies otherwise
- If the claim is denied, a ride sharing company must help fill in personal insurance gaps
- Not Subject to the Same Rules as Other Transportation Services
- Many regulations on taxis have yet to be applied to ride sharing companies
- Should Ride Sharing Services Have the Same Regulations as Taxis?
- 42% of all adults feel that ride sharing companies don’t need to follow the same rules as taxis
- Laws Change from City-to-City
- Ride sharing companies must meet certain insurance coverage requirements
- Some cities or areas require more coverage than others
- Minnesota: $1.5 million in coverage during periods 2 and 3
- California: $1 million in liability coverage during periods 2 and 3
- New York City: Requires commercial coverage
- Riders Should Be Prepared in Case of an Accident
- Accident Site
- Get Assistance
- Call the police and get any needed medical attention
- Move cars to a safe place if accident is minor
- Signal with hazard lights or cones
- Compile Information
- Gather details about your driver (e.g., their contact information, ridesharing company, and insurance agencies)
- After the Accident
- Consider Options
- Evaluate whether you want to pursue a claim, as it could take a long time and cost a lot of money
- Compile accident claim costs (e.g., medical, repair, work loss, and any other important details)
- Contact a Lawyer
- Helps you receive claims from ride sharing and insurance companies
- Free consultations
- No fees until they make your expenses back
- Assists you with differences in state-to-state laws
